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Gogo (GOGO) Soars 5.5%: Is Further Upside Left in the Stock?
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Gogo (GOGO - Free Report) shares soared 5.5% in the last trading session to close at $9.33. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.1% loss over the past four weeks.
With the divestiture of the commercial in-flight connectivity division, Gogo has restructured its business model to focus more on its core operations. The transformative sale agreement has unlocked new business opportunities for Gogo within the business aviation market and has improved its liquidity position. In addition, a bullish guidance for 2024 has instilled investor optimism, which probably fueled the share price appreciation.
This in-flight internet provider is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -53.3%. Revenues are expected to be $96.98 million, down 1.7% 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 Gogo, the consensus EPS estimate for the quarter has been revised 32.5% 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 GOGO going forward to see if this recent jump can turn into more strength down the road.
Gogo belongs to the Zacks Wireless National industry. Another stock from the same industry, Verizon Communications (VZ - Free Report) , closed the last trading session 0.3% higher at $40.26. Over the past month, VZ has returned 0%.
Verizon's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.12. Compared to the company's year-ago EPS, this represents a change of -6.7%. Verizon currently boasts a Zacks Rank of #3 (Hold).
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Gogo (GOGO) Soars 5.5%: Is Further Upside Left in the Stock?
Gogo (GOGO - Free Report) shares soared 5.5% in the last trading session to close at $9.33. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.1% loss over the past four weeks.
With the divestiture of the commercial in-flight connectivity division, Gogo has restructured its business model to focus more on its core operations. The transformative sale agreement has unlocked new business opportunities for Gogo within the business aviation market and has improved its liquidity position. In addition, a bullish guidance for 2024 has instilled investor optimism, which probably fueled the share price appreciation.
This in-flight internet provider is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -53.3%. Revenues are expected to be $96.98 million, down 1.7% 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 Gogo, the consensus EPS estimate for the quarter has been revised 32.5% 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 GOGO 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 >>>>
Gogo belongs to the Zacks Wireless National industry. Another stock from the same industry, Verizon Communications (VZ - Free Report) , closed the last trading session 0.3% higher at $40.26. Over the past month, VZ has returned 0%.
Verizon's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.12. Compared to the company's year-ago EPS, this represents a change of -6.7%. Verizon currently boasts a Zacks Rank of #3 (Hold).