Strength Seen in AudioCodes (AUDC): Can Its 6.7% Jump Turn into More Strength?
AudioCodes (AUDC) shares soared 6.7% in the last trading session to close at $9.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.8% loss over the past four weeks.
AudioCodes is likely to have benefited from the secular tailwinds related to IP-based communications. The uptrend is also expected to have been triggered by its continued focus on high-margin businesses, resulting in a faster-than-expected expansion in operating margins. Its long-term partnership with Microsoft has further helped it strengthen its market position.
This communication components company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $61.58 million, down 0% 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 AudioCodes, 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 AUDC 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 >>>>
AudioCodes is part of the Zacks Communication - Components industry. Altice USA, Inc. (ATUS), another stock in the same industry, closed the last trading session 15.6% higher at $2.44. ATUS has returned 12.2% in the past month.
For Altice USA , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of -86.7% from what the company reported a year ago. Altice USA currently has a Zacks Rank of #3 (Hold).
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AudioCodes Ltd. (AUDC) : Free Stock Analysis Report
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