Strength Seen in Uniti (UNIT): Can Its 12.7% Jump Turn into More Strength?

Uniti Group (UNIT) shares ended the last trading session 12.7% higher at $7.26. 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 1.4% gain over the past four weeks.

Uniti is likely to benefit from the merger with Windstream, creating a premier insurgent fiber provider with approximately 240,000 route miles. The combined company is uniquely positioned to gain from many favorable tailwinds driving the communications infrastructure industry, including convergence and Generative AI. The transaction is expected to fulfill its mission to deliver seamless fiber connectivity across the United States. 

This real estate investment trust is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +650%. Revenues are expected to be $817.3 million, up 179.7% 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 Uniti, 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 UNIT 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 >>>>

Uniti is part of the Zacks Wireless National industry. T-Mobile (TMUS), another stock in the same industry, closed the last trading session 3.9% lower at $242.9. TMUS has returned 3.2% in the past month.

For T-Mobile, the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $2.74. This represents a change of +5% from what the company reported a year ago. T-Mobile currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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