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Gray Media (GTN) Moves 10.4% Higher: Will This Strength Last?

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Gray Media (GTN - Free Report) shares ended the last trading session 10.4% higher at $5.22. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 19.4% gain over the past four weeks.

Gray Media is benefiting from rising momentum in local sports programming ads, expanding pipeline of high-profile projects and implementation of cost containment initiatives. It announced a $900 million private offering of 9.625% senior secured second lien notes due 2032, which is an upsized deal over the originally planned $750 million.

This broadcast television company is expected to post quarterly loss of $0.34 per share in its upcoming report, which represents a year-over-year change of -477.8%. Revenues are expected to be $763 million, down 7.6% 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 Gray Media, 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 GTN 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 >>>>

Gray Media is part of the Zacks Broadcast Radio and Television industry. Sirius XM (SIRI - Free Report) , another stock in the same industry, closed the last trading session 3.5% higher at $24.44. SIRI has returned 7.4% in the past month.

Sirius XM's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.8. Compared to the company's year-ago EPS, this represents no change. Sirius XM currently boasts a Zacks Rank of #4 (Sell).


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