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Altice USA, Inc. (ATUS) Stock Jumps 22.3%: Will It Continue to Soar?

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Altice USA, Inc. (ATUS - Free Report) shares rallied 22.3% in the last trading session to close at $11.23. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.8% gain over the past four weeks.

Altice is reportedly considering the sale of Suddenlink, which provides cable and Internet service in the south-central United States such as Arizona, California, and Texas to trim down its massive debt load. It is supposedly soliciting interests from potential suitors regarding the asset sale. The transaction is likely to fetch the company about $20 billion.

With presence in underpenetrated largely rural markets, Suddenlink is one of the leading cable and Internet service brands of Altice. Earlier, the company announced plans to merge the Suddenlink brand with Optimum to align all the services under a single national Optimum brand. The rebranding exercise is likely to better resonate the corporate objectives and offer seamless connectivity to all users.

This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -36.5%. Revenues are expected to be $2.45 billion, down 2.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Altice USA, Inc., the consensus EPS estimate for the quarter has been revised 2.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ATUS 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 >>>>

Altice USA, Inc. belongs to the Zacks Communication - Components industry. Another stock from the same industry, Harmonic (HLIT - Free Report) , closed the last trading session 4.7% higher at $10.46. Over the past month, HLIT has returned 17.8%.

Harmonic's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.09. Compared to the company's year-ago EPS, this represents a change of +80%. Harmonic currently boasts a Zacks Rank of #2 (Buy).

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