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Strength Seen in VIZIO Holding (VZIO): Can Its 7.7% Jump Turn into More Strength?

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VIZIO Holding Corp. (VZIO - Free Report) shares rallied 7.7% in the last trading session to close at $7.02. 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 5% loss over the past four weeks.

VIZIO Holding's rally is primarily driven by optimism regarding its strength in the Platform+ business and solid demand for its advertising services. The company expects that the increase in the number of use cases for Smart TVs will likely fuel its revenues from Connected TV advertising and SVOD services.

This company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $385.84 million, down 5.6% 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 VIZIO Holding Corp., 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 VZIO 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 >>>>

VIZIO Holding Corp. is part of the Zacks Consumer Products - Discretionary industry. Prestige Brands (PBH - Free Report) , another stock in the same industry, closed the last trading session 1.1% lower at $57.28. PBH has returned -0.6% in the past month.

Prestige Brands' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.01. Compared to the company's year-ago EPS, this represents a change of -7.3%. Prestige Brands currently boasts a Zacks Rank of #3 (Hold).


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