Rogers Communication (RCI) Stock Jumps 5.7%: Will It Continue to Soar?
Zacks Investment Research | Mar 17, 2021 03:45AM ET
Rogers (NYSE:ROG) Communication (RCI) shares rallied 5.7% in the last trading session to close at $52.25. 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 5.4% gain over the past four weeks.
The upswing in share price came as the company reached an agreement to acquire Shaw Communications (NYSE:SJR) in a transaction valued at around $26 billion inclusive of nearly $6 billion of debt.
As part of the transaction, both the companies will together invest $2.5 billion in 5G networks over the next five years across Western Canada, which will enhance competitiveness.
Price and Consensus
This communications and media company is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $2.64 billion, up 3.7% 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 Rogers Communication, the consensus EPS estimate for the quarter has been revised 2.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RCI 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 Zacks Investment Research
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