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J2 Global (JCOM) Stock Jumps 3.9%: Will It Continue to Soar?

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J2 Global JCOM shares soared 3.9% in the last trading session to close at $125.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.1% gain over the past four weeks.

J2 Global extended its rally for the second straight day, driven by optimism over its outlook for 2021. is benefiting from strong Digital Media business, particularly advertising, gaming and streaming service categories. Ookla, Ekahau, Downdetector and Deal Finder browser app are expected to drive growth. The company continues to gain from accretive acquisitions and growing cybersecurity portfolio that are expected to boost its prospects in the long haul.

Moreover, the company recently announced its plan to separate into two independent publicly traded companies – J2 Global and Consensus.

Price and Consensus

Price Consensus Chart for JCOM
Price Consensus Chart for JCOM

This internet and cloud services company is expected to post quarterly earnings of $1.65 per share in its upcoming report, which represents a year-over-year change of +17.9%. Revenues are expected to be $365.25 million, up 9.9% 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 j2 Global, 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 JCOM 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 >>>>

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