Liberty Broadband (LBRDK) Moves 11.2% Higher: Will This Strength Last?
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Liberty Broadband LBRDK shares rallied 11.2% in the last trading session to close at $89.90. 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 4.7% gain over the past four weeks.
Liberty Broadband shares are benefiting from the counterproposal to Charter's merger proposal ahead of third-quarter earnings. The proposition offers Liberty Broadband investors 0.29 Charter shares per Liberty share instead of the initial proposal of 0.228 shares for each share of Liberty.
This tracking stock is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +143.6%. Revenues are expected to be $237.41 million, down 1.1% 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 Liberty Broadband, the consensus EPS estimate for the quarter has been revised 19.3% 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 LBRDK 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 >>>>
Liberty Broadband is a member of the Zacks Cable Television industry. One other stock in the same industry, Cable One CABO, finished the last trading session 5.4% higher at $359.98. CABO has returned -0.4% over the past month.
Cable One's consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $9.93. Compared to the company's year-ago EPS, this represents a change of -7.9%. Cable One currently boasts a Zacks Rank of #4 (Sell).
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Liberty Broadband Corporation (LBRDK) : Free Stock Analysis Report
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