We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shenandoah Telecom (SHEN) Surges 10.5%: Is This an Indication of Further Gains?
Read MoreHide Full Article
Shenandoah Telecommunications (SHEN - Free Report) shares rallied 10.5% in the last trading session to close at $24.69. 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 9.5% gain over the past four weeks.
Shenandoah Telecom recently inked a definitive agreement to acquire 100% ownership stake in Horizon Telecom Inc. for $385 million, including $305 million in cash and $80 million worth of Shenandoah Telecom stock. Horizon is a leading commercial fiber provider in Ohio, offering 7,200 route-mile fiber network with more than 9,000 on-net locations. Approximately 64% of Horizon’s revenues are derived from commercial customers.
The buyout will enable Shenandoah Telecom to accelerate its Fiber First strategy by doubling the size of its commercial fiber business. It expects to pass 150,000 additional homes with fiber, targeting 600,000 total passings by the end of 2026. Together with its 9,000 route-mile, the transaction will help create multi-state fiber network, likely translating to a stronger combined business with solid revenue-generating potential.
This telecommunications service provider in parts of Maryland, Pennsylvania, Virginia and West Virginia is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $71.18 million, up 6.4% 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 Shenandoah Telecom, 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 SHEN going forward to see if this recent jump can turn into more strength down the road.
Shenandoah Telecom belongs to the Zacks Diversified Communication Services industry. Another stock from the same industry, Telefonica (TEF - Free Report) , closed the last trading session 2.3% lower at $3.75. Over the past month, TEF has returned -7.3%.
Telefonica's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. Compared to the company's year-ago EPS, this represents a change of +150%. Telefonica currently boasts a Zacks Rank of #4 (Sell).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shenandoah Telecom (SHEN) Surges 10.5%: Is This an Indication of Further Gains?
Shenandoah Telecommunications (SHEN - Free Report) shares rallied 10.5% in the last trading session to close at $24.69. 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 9.5% gain over the past four weeks.
Shenandoah Telecom recently inked a definitive agreement to acquire 100% ownership stake in Horizon Telecom Inc. for $385 million, including $305 million in cash and $80 million worth of Shenandoah Telecom stock. Horizon is a leading commercial fiber provider in Ohio, offering 7,200 route-mile fiber network with more than 9,000 on-net locations. Approximately 64% of Horizon’s revenues are derived from commercial customers.
The buyout will enable Shenandoah Telecom to accelerate its Fiber First strategy by doubling the size of its commercial fiber business. It expects to pass 150,000 additional homes with fiber, targeting 600,000 total passings by the end of 2026. Together with its 9,000 route-mile, the transaction will help create multi-state fiber network, likely translating to a stronger combined business with solid revenue-generating potential.
This telecommunications service provider in parts of Maryland, Pennsylvania, Virginia and West Virginia is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $71.18 million, up 6.4% 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 Shenandoah Telecom, 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 SHEN 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 >>>>
Shenandoah Telecom belongs to the Zacks Diversified Communication Services industry. Another stock from the same industry, Telefonica (TEF - Free Report) , closed the last trading session 2.3% lower at $3.75. Over the past month, TEF has returned -7.3%.
Telefonica's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. Compared to the company's year-ago EPS, this represents a change of +150%. Telefonica currently boasts a Zacks Rank of #4 (Sell).