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AMC Networks (AMCX) Stock Jumps 7.2%: Will It Continue to Soar?

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AMC Networks (AMCX - Free Report) shares ended the last trading session 7.2% higher at $30.78. 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 26.3% loss over the past four weeks.

AMC is benefiting from growth in streaming and advertising revenues. AMC remains on track to achieve long-term subscriber goal of 20-25 million streaming subscribers by 2025 with 9.5 million streaming subscribers as of Mar 31, 2022.

This owner of cable channels including AMC and IFC is expected to post quarterly earnings of $1.98 per share in its upcoming report, which represents a year-over-year change of -42.6%. Revenues are expected to be $778.27 million, up 0.9% 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 AMC Networks, 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 AMCX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

AMC Networks is a member of the Zacks Broadcast Radio and Television industry. One other stock in the same industry, Gray Television (GTN - Free Report) , finished the last trading session 1.4% higher at $17.13. GTN has returned -13.2% over the past month.

For Gray Television, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.97. This represents a change of +259.3% from what the company reported a year ago. Gray Television currently has a Zacks Rank of #1 (Strong Buy).

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