Iridium (IRDM) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions…
Grow Your Business,
Not Your Inbox
Stay informed and join our daily newsletter now!
3 min read
This story originally appeared on Zacks
Iridium Communications (IRDM) shares soared 15.4% in the last trading session to close at $46.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 3.8% loss over the past four weeks.
IRDM’s rally is largely driven by optimism over speculations that technology giant, Apple, intends to incorporate satellite features in its future iPhones. The satellite functionalities will be focused on emergency situations to make calls beyond the reach of cellular networks, thereby enabling seamless space-based mobile communications. Although rumors are rife that Apple is rooting for Qualcomm’s chip to facilitate low-earth-orbit satellite communications, shares of Iridium gained substantially, given its state-of-the-art satellite capabilities, technology and service coverage. This infused positive sentiments among the investors.
Price and Consensus
This satellite phone company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +33.3%. Revenues are expected to be $155.37 million, 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 Iridium, the consensus EPS estimate for the quarter has been revised 48.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on IRDM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Iridium Communications Inc (IRDM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research