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Strength Seen in Tele2 (TLTZY): Can Its 7.8% Jump Turn into More Strength?

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Tele2 (TLTZY - Free Report) shares rallied 7.8% in the last trading session to close at $6.95. 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 9.9% gain over the past four weeks.

The uptrend in shares could have been triggered by industry grapevines that suggest that TLTZY is mulling to sell its wireless towers in the Baltics. These primarily include telecom towers in Estonia, Latvia and Lithuania. The proposed sale is likely to fetch about $542 million and help Tele2 strengthen its core businesses.

This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $721.73 million, up 4.9% 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 Tele2, 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 TLTZY 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 >>>>

Tele2 is part of the Zacks Wireline Non-US industry. Telecom Argentina (TEO - Free Report) , another stock in the same industry, closed the last trading session 1.6% lower at $10.42. TEO has returned -9.3% in the past month.

For Telecom Argentina, the consensus EPS estimate for the upcoming report has changed +13.9% over the past month to -$0.24. This represents a change of -112.8% from what the company reported a year ago. Telecom Argentina currently has a Zacks Rank of #1 (Strong Buy).


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