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IHS Holding (IHS) Stock Jumps 9.7%: Will It Continue to Soar?

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IHS Holding (IHS - Free Report) shares soared 9.7% in the last trading session to close at $5.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.7% gain over the past four weeks.

IHS Holding one of the dominant players in the communication infrastructure space is benefiting from solid demand trends across Africa. The company has been steadily investing in base transceiver stations, fiber connectivity and building telecom towers to generate more colocation opportunities. Growing 5G proliferation in sub–Saharan Africa and Latin America is expected to drive demand for IHS Towers in upcoming quarters. These factors have instilled investor optimism, which probably propelled the share price appreciation.

This telecommunications infrastructure company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +342.9%. Revenues are expected to be $421.26 million, up 0.8% 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 IHS Holding, 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 IHS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

IHS Holding belongs to the Zacks Communication - Infrastructure industry. Another stock from the same industry, Anterix (ATEX - Free Report) , closed the last trading session 0.7% lower at $29.27. Over the past month, ATEX has returned -10%.

For Anterix, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.43. This represents a change of +15.7% from what the company reported a year ago. Anterix currently has a Zacks Rank of #3 (Hold).


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