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ADT (ADT) Soars 7.9%: Is Further Upside Left in the Stock?
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ADT Inc. (ADT - Free Report) shares ended the last trading session 7.9% higher at $7.41. 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 11.9% gain over the past four weeks.
ADT’s rally is largely driven by optimism over an increase in security installation, product and other revenues arising from a higher mix of professionally installed systems. Also, the company’s strategic initiatives, innovation and operational excellence bode well.
This home security company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues are expected to be $1.33 billion, up 2.6% 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 ADT, 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 ADT going forward to see if this recent jump can turn into more strength down the road.
ADT belongs to the Zacks Security and Safety Services industry. Another stock from the same industry, Resideo Technologies (REZI - Free Report) , closed the last trading session 0.1% higher at $18.31. Over the past month, REZI has returned 0.9%.
For Resideo Technologies, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.45. This represents a change of -49.4% from what the company reported a year ago. Resideo Technologies currently has a Zacks Rank of #4 (Sell).
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ADT (ADT) Soars 7.9%: Is Further Upside Left in the Stock?
ADT Inc. (ADT - Free Report) shares ended the last trading session 7.9% higher at $7.41. 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 11.9% gain over the past four weeks.
ADT’s rally is largely driven by optimism over an increase in security installation, product and other revenues arising from a higher mix of professionally installed systems. Also, the company’s strategic initiatives, innovation and operational excellence bode well.
This home security company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues are expected to be $1.33 billion, up 2.6% 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 ADT, 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 ADT 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 >>>>
ADT belongs to the Zacks Security and Safety Services industry. Another stock from the same industry, Resideo Technologies (REZI - Free Report) , closed the last trading session 0.1% higher at $18.31. Over the past month, REZI has returned 0.9%.
For Resideo Technologies, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.45. This represents a change of -49.4% from what the company reported a year ago. Resideo Technologies currently has a Zacks Rank of #4 (Sell).