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Strength Seen in Casa Systems (CASA): Can Its 12.3% Jump Turn into More Strength?

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Zacks Equity Research
·2 min read
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Casa Systems (CASA) shares ended the last trading session 12.3% higher at $8.94. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.4% loss over the past four weeks.

CASA’s rally is largely driven by optimism over the launch of its new O-RAN mid-band radio, the ApexÔ 5G Evo. This new indoor radio solution provides simultaneous use of multiple mid-band channels, which enables service providers to enhance coverage and data speed, and deliver a multi-gigabit 5G experience to consumers and enterprises. The company continues to launch products, including its industry-leading 5G millimeter-wave fixed access devices. It aims to diversify its revenues through increased wireless and fixed telco sales as well as expanding its customer base.

Price and Consensus

Price Consensus Chart for Casa Systems
Price Consensus Chart for Casa Systems

This provider of digital cable video and broadband services is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +128.6%. Revenues are expected to be $93.73 million, up 12.1% 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 Casa Systems, 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 CASA 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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