Gogo (GOGO) Moves 14.9% Higher: Will This Strength Last?

Gogo (GOGO) shares soared 14.9% in the last trading session to close at $14.40. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2% gain over the past four weeks.The upside was primarily attributable to the successful delivery of the first 5G air-to-ground (ATG) connectivity using Gogo 5G chip. The end-to-end 5G call validates the Gogo 5G ATG system. It will provide customers with high-speed broadband for seamless video conferencing, streaming and other activities across multiple devices, with more than 300 aircraft being pre-provisioned for Gogo 5G connectivity.This further complements the significant strides Gogo has already achieved in the 5G market, including the formal approval from the Federal Aviation Administration to manufacture state-of-the-art solutions, investment in a network of 170 5G towers, installation of a new ‘5G core’ at its data center and the development of a new 5G aircraft antenna.This in-flight internet provider is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +20%. Revenues are expected to be $220 million, up 115.6% 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Gogo is part of the Zacks Wireless National industry. United States Cellular (USM), another stock in the same industry, closed the last trading session 0.7% higher at $60.33. USM has returned -2.4% in the past month.For U.S. Cellular, the consensus EPS estimate for the upcoming report has changed -3% over the past month to $0.33. This represents a change of +65% from what the company reported a year ago. U.S. Cellular currently has a Zacks Rank of #3 (Hold).Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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 Gogo Inc. (GOGO): Free Stock Analysis Report United States Cellular Corporation (USM): Free Stock Analysis Report Ichor Holdings, Ltd. (ICHR): Free Stock Analysis Report Vital Energy, Inc. (VTLE): 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