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Consolidated Communications (CNSL) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Consolidated Communications (CNSL) closed at $4.95, marking a +1.23% move from the previous day. This move outpaced the S&P 500's daily loss of 0.62%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.74%.

Heading into today, shares of the telecommunications company had lost 1.21% over the past month, lagging the Utilities sector's gain of 2.33% and the S&P 500's gain of 2.8% in that time.

CNSL will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2019. In that report, analysts expect CNSL to post earnings of -$0.07 per share. This would mark year-over-year growth of 30%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $333 million, down 4.92% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.19 per share and revenue of $1.34 billion. These totals would mark changes of +47.22% and -4.39%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CNSL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.84% higher. CNSL currently has a Zacks Rank of #1 (Strong Buy).

The Wireless - Regional - Rural industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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