ADTRAN Holdings (ADTN) Soars 7.0%: Is Further Upside Left in the Stock?

ADTRAN Holdings (ADTN) shares soared 7% in the last trading session to close at $9.67. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.2% gain over the past four weeks.ADTRAN is undergoing a multi-year integration program to optimize its assets, business processes and information technology systems. The restructuring program is expected to maximize cost synergies by realizing operation scale, combining sales channels, streamlining corporate and general and administrative functions, including human capital resources and combining sourcing and production costs. The company has also embarked on a Business Efficiency Program that expands upon its restructuring efforts to reduce operating expenses and focus on capital efficiency improvements. These include salary reductions, an early retirement program, a site consolidation plan, inventory write-downs from product discontinuances and suspension of quarterly dividends.This networking equipment maker is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +98.2%. Revenues are expected to be $236.95 million, up 5.1% 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 ADTRAN Holdings, 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 ADTN 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 >>>>ADTRAN Holdings is a member of the Zacks Technology Services industry. One other stock in the same industry, Ecovyst (ECVT), finished the last trading session 1.9% lower at $7.59. ECVT has returned -4% over the past month.Ecovyst's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.24. Compared to the company's year-ago EPS, this represents a change of +9.1%. Ecovyst currently boasts a Zacks Rank of #4 (Sell).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 ADTRAN Holdings, Inc. (ADTN): Free Stock Analysis Report Ecovyst Inc. (ECVT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks