Harmonic (HLIT) shares soared 7.7% in the last trading session to close at $14.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 3.4% loss over the past four weeks.
With more than three decades of experience, it has revolutionized cable access networking via the industry’s first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit internet service to consumers’ homes and mobile devices. One of its clients has reportedly revealed plans to spend $5.5 billion on network evolution initiatives in 2023. This augurs well for the long-term growth of the company, sending the stocks higher.
This video services provider is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -6.3%. Revenues are expected to be $159.93 million, up 2.7% 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 Harmonic, 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 HLIT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Harmonic is part of the Zacks Communication – Components industry. Corning (GLW), another stock in the same industry, closed the last trading session 0.8% lower at $33.73. GLW has returned -1.1% in the past month.
Corning’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.44. Compared to the company’s year-ago EPS, this represents a change of -18.5%. Corning currently boasts a Zacks Rank of #4 (Sell).
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