Cogent (CCOI) Surges 6.3%: Is This an Indication of Further Gains?

Cogent Communications CCOI shares rallied 6.3% in the last trading session to close at $53.83. 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 27.6% loss over the past four weeks.Cogent continues to boast a leading provider of high-speed Internet access market. It benefits from cost-effective operations and a streamlined product offering that eliminates redundant costs and offers greater pricing flexibility. It has a high-traffic network footprint across major multi-tenant office buildings in North American cities and carrier-neutral colocation centers in North America and Europe, delivering high levels of Internet traffic. The company has a strong international presence. The U.S. Government’s recent decision to suspend higher tariffs for most countries for 90 days, except China, has raised investors’ confidence. These factors are likely to have propelled the share price appreciation.This internet service provider is expected to post quarterly loss of $0.88 per share in its upcoming report, which represents a year-over-year change of +31.8%. Revenues are expected to be $252.09 million, down 5.3% 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 Cogent, the consensus EPS estimate for the quarter has been revised 6% 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 CCOI 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 >>>>Cogent belongs to the Zacks Wireless National industry. Another stock from the same industry, T-Mobile TMUS, closed the last trading session 3.5% higher at $254.90. Over the past month, TMUS has returned -4%.For T-Mobile, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $2.47. This represents a change of +23.5% from what the company reported a year ago. T-Mobile currently has a Zacks Rank of #3 (Hold).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Cogent Communications Holdings, Inc. (CCOI): Free Stock Analysis Report T-Mobile US, Inc. (TMUS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks