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Strength Seen in Nexxen International Ltd. Sponsored ADR (NEXN): Can Its 9.6% Jump Turn into More Strength?

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Nexxen International Ltd. Sponsored ADR (NEXN - Free Report) shares soared 9.6% in the trading session on Thursday to close at $8.66. 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.

The stock is gaining from the company’s strengthened momentum following its rebrand, enhanced sales performance, expanding CTV partnerships, and more favorable market conditions.

 

This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +77.8%. Revenues are expected to be $87.5 million, up 9.3% 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 Nexxen International Ltd. Sponsored ADR, 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 NEXN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Nexxen International Ltd. Sponsored ADR is part of the Zacks Advertising and Marketing industry. Stagwell (STGW - Free Report) , another stock in the same industry, closed the last trading session 2.5% higher at $7.02. STGW has returned -6.6% in the past month.

For Stagwell, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.23. This represents a change of +27.8% from what the company reported a year ago. Stagwell currently has a Zacks Rank of #3 (Hold).


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