Strength Seen in Townsquare (TSQ): Can Its 5.2% Jump Turn into More Strength?
Townsquare Media TSQ shares ended the last trading session 5.2% higher at $11.15. 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 18% gain over the past four weeks.
The upswing in Townsquare’s share price can be attributed to its growing top-line driven by Digital First Local Media strategy that focuses exclusively on local markets outside of the Top 50. Strong cash flow generation ability is also noteworthy.
This operator of radio stations in small and mid-sized markets is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of -35.2%. Revenues are expected to be $121.08 million, down 0.7% 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 Townsquare, 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 TSQ 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 >>>>
Townsquare is part of the Zacks Broadcast Radio and Television industry. Grupo Televisa TV, another stock in the same industry, closed the last trading session 1.5% lower at $5.32. TV has returned 8% in the past month.
For Grupo Televisa , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.05. This represents a change of -81.5% from what the company reported a year ago. Grupo Televisa currently has a Zacks Rank of #3 (Hold).
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Townsquare Media, Inc. (TSQ) : Free Stock Analysis Report
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