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Gogo (GOGO) Stock Jumps 8.9%: Will It Continue to Soar?

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Gogo (GOGO - Free Report) shares ended the last trading session 8.9% higher at $13.32. 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 28.7% loss over the past four weeks.

With the divestiture of the commercial in-flight connectivity division, the company has restructured its business model to focus more on its core operations. The transformative sale agreement has unlocked new business opportunities for Gogo within the business aviation market and has improved its liquidity position.

This in-flight internet provider is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -6.3%. Revenues are expected to be $101.89 million, up 16.9% 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 Gogo, 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 GOGO 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 >>>>

Gogo is a member of the Zacks Wireless National industry. One other stock in the same industry, United States Cellular (USM - Free Report) , finished the last trading session 0.4% lower at $26.90. USM has returned -9.8% over the past month.

For U.S. Cellular, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. This represents a change of -55.3% from what the company reported a year ago. U.S. Cellular currently has a Zacks Rank of #3 (Hold).


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