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Comtech (CMTL) Stock Jumps 7.3%: Will It Continue to Soar?

·2 min read

Comtech Telecommunications (CMTL) shares rallied 7.3% in the last trading session to close at $13.02. 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 31.4% gain over the past four weeks.

The company recently secured a strategic order for its Comtech ELEVATE VSAT platform from an unnamed Tier One global service operator to provide 4G/LTE cellular backhaul connectivity in Latin America. With two geographically redundant ELEVATE Hubs operating across multiple beams of a latest-generation Ka-band High Throughput Satellite, the solution connects thousands of remote sites for mobile cellular connectivity. This will enable this operator to expand its coverage across the region.

This communications company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of -125%. Revenues are expected to be $122.63 million, down 15.9% 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 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. Aviat Networks, Inc. (AVNW), another stock in the same industry, closed the last trading session 0.2% higher at $33.55. AVNW has returned 28.5% in the past month.

For Aviat Networks, Inc. , the consensus EPS estimate for the upcoming report has changed +0.8% over the past month to $0.68. This represents a change of +51.1% from what the company reported a year ago. Aviat Networks, Inc. currently has a Zacks Rank of #2 (Buy).


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