Back to top

Image: Bigstock

Sinclair (SBGI) Soars 5.5%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

Sinclair (SBGI - Free Report) shares ended the last trading session 5.5% higher at $20.99. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.7% loss over the past four weeks.

Increased optimism over speculated soft-launch of the company's local sports streaming service in five markets including Detroit, Kansas City, Miami, Milwaukee and Tampa drove the stock higher.

This television broadcasting company is expected to post quarterly loss of $3.35 per share in its upcoming report, which represents a year-over-year change of +16.9%. Revenues are expected to be $1.65 billion, up 2.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Sinclair, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SBGI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Sinclair is part of the Zacks Broadcast Radio and Television industry. fuboTV Inc. (FUBO - Free Report) , another stock in the same industry, closed the last trading session 3.2% higher at $2.95. FUBO has returned -10.9% in the past month.

fuboTV Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.68. Compared to the company's year-ago EPS, this represents a change of -79%. fuboTV Inc. currently boasts a Zacks Rank of #3 (Hold).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Sinclair Broadcast Group, Inc. (SBGI) - free report >>

fuboTV Inc. (FUBO) - free report >>

Published in