Harmonic (HLIT) Surges 6.1%: Is This an Indication of Further Gains?
Harmonic (HLIT) shares rallied 6.1% in the last trading session to close at $15.50. 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 19.5% gain over the past four weeks.
The company recently unveiled innovative solutions that are likely to take video to the next level with the most advanced, scalable solutions for live sports streaming, targeted advertising and cloud playout. Harmonic’s VOS360 SaaS platform and XOS advanced media processor enable media firms and service providers to stream live sports at scale with pristine quality, low latency and targeted advertising.
In addition, Harmonic’s new stand-alone server-side ad insertion SaaS solution offers streaming services with enhanced addressability, while its end-to-end cloud-native playout solution delivers automated linear channel lineups. This helps in improved distribution, simplified graphics creation for live content and an expanded ecosystem for cloud playout for video streaming and broadcast workflows. This, in turn, reduces costs, increases operational efficiencies and boosts monetization.
This video services provider is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +12.5%. Revenues are expected to be $157.9 million, up 7.1% 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Harmonic is a member of the Zacks Communication - Components industry. One other stock in the same industry, Arista Networks (ANET), finished the last trading session 2.1% higher at $163.13. ANET has returned 9.1% over the past month.
For Arista Networks , the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $1.35. This represents a change of +60.7% from what the company reported a year ago. Arista Networks currently has a Zacks Rank of #1 (Strong Buy).
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
Harmonic Inc. (HLIT) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
