Webtoon Entertainment WBTN shares rallied 5.7% in the last trading session to close at $11.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.9% loss over the past four weeks.
Webtoon’s gain could have further room to run, supported by improving fundamentals, expanding gross margins, AI-powered personalization and creator tools, rising paying users, disciplined cost controls, stronger advertising prospects and management’s confidence in returning to double-digit revenue growth by year-end.
This online storytelling platform for comics and cartoons is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -71.4%. Revenues are expected to be $338.05 million, down 2.9% 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 Webtoon, 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 WBTN 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 >>>>
Webtoon is part of the Zacks Internet - Content industry. Opera Limited Sponsored ADR OPRA, another stock in the same industry, closed the last trading session 3.9% higher at $18.85. OPRA has returned -1.1% in the past month.
Opera Limited's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.33. Compared to the company's year-ago EPS, this represents a change of +26.9%. Opera Limited currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
