We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Comtech (CMTL) Surges 11.0%: Is This an Indication of Further Gains?
Read MoreHide Full Article
Comtech Telecommunications (CMTL - Free Report) shares rallied 11% in the last trading session to close at $5.75. 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 48% gain over the past four weeks.
The uptrend was largely buoyed by government SATCOM modernization, digital ground infrastructure upgradation and increased NG911/cloud adoption. Strong consolidated book-to-bill and funded backlog support multi-period revenue visibility. Comtech has exited low-margin legacy work and is pivoting S&S to digital common ground modems, network solutions and deployable MPRs. The company is also benefiting from healthy gross margin gains over the past year, reflecting the shift from NRE to higher-volume production.
This communications company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $110.21 million, down 13.1% 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 Comtech, 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 CMTL going forward to see if this recent jump can turn into more strength down the road.
Comtech is part of the Zacks Wireless Equipment industry. Ericsson (ERIC - Free Report) , another stock in the same industry, closed the last trading session 2.3% lower at $12.74. ERIC has returned 14% in the past month.
For Ericsson, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.13. This represents a change of -7.1% from what the company reported a year ago. Ericsson currently has a Zacks Rank of #3 (Hold).
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Comtech (CMTL) Surges 11.0%: Is This an Indication of Further Gains?
Comtech Telecommunications (CMTL - Free Report) shares rallied 11% in the last trading session to close at $5.75. 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 48% gain over the past four weeks.
The uptrend was largely buoyed by government SATCOM modernization, digital ground infrastructure upgradation and increased NG911/cloud adoption. Strong consolidated book-to-bill and funded backlog support multi-period revenue visibility. Comtech has exited low-margin legacy work and is pivoting S&S to digital common ground modems, network solutions and deployable MPRs. The company is also benefiting from healthy gross margin gains over the past year, reflecting the shift from NRE to higher-volume production.
This communications company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $110.21 million, down 13.1% 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 Comtech, 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 CMTL 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 >>>>
Comtech is part of the Zacks Wireless Equipment industry. Ericsson (ERIC - Free Report) , another stock in the same industry, closed the last trading session 2.3% lower at $12.74. ERIC has returned 14% in the past month.
For Ericsson, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.13. This represents a change of -7.1% from what the company reported a year ago. Ericsson currently has a Zacks Rank of #3 (Hold).