Iridium Communications (IRDM) stock rose 15.4 percent in the most recent trading session, closing at $46.88. The rally was supported by high volume, with much more shares changing hands than in a typical day. This compared to a 3.8 percent drop in the stock over the last four weeks.
The surge in IRDM is primarily fueled by anticipation that Apple, the technology titan, wants to include satellite functions in future iPhones. The satellite capabilities will be focused on emergency circumstances, allowing calls to be made outside of the reach of cellular networks, enabling seamless space-based mobile communications. While it is a rumor that Apple roots the Qualcomm processor for low-earth-orbit satellite communications, Iridium shares have increased considerably in view of its advanced satellite capabilities, technology, and the provision of service. This has filled the investors with optimistic feelings.
The Price And The Consensus
This satellite phone business is projected to announce a quarterly loss of $0.02 per share in its next report, representing a +33.3 percent year-over-year difference. Revenues are anticipated to be $155.37 million, a 2.6 percent increase over the previous quarter.
While expectations for profits and revenue growth are essential in determining a stock’s prospective strength, empirical research reveals a substantial link between patterns in earnings estimate revisions and near-term stock price fluctuations.
For Iridium, the consensus EPS estimate for the quarter has been revised 48.1 percent higher to the present level over the previous 30 days. Furthermore, a favorable trend in earnings estimates revision generally correlates with price appreciation. So, keep a watch on IRDM moving ahead to see if this current surge will translate into additional strength in the future.
The stock presently has a Zacks Rank of 1. (Strong Buy). The entire list of today’s Zacks Rank #1 (Strong Buy) stocks can be seen here >>>>
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