Why SodaSream (SODA) Shares Exploded Higher Today - Analyst Blog

Shares of

are on the move today, bursting higher by as much as 8.1%. This large upswing in shares of SODA is a nice change of pace for the company, and it comes on some big rumors too.

Shares of the Israel-based firm were buoyed by hopes that the company is in talks to sell as much as 16% of itself to a big buyer. Speculation is that the partner will be a big beverage maker, allowing SODA to compete more effectively in this ultra-competitive space. 

Today's big move follows up some very negative earnings estimate revisions for SODA, as the stock currently has a neutral Zacks Rank #3 (Hold). This rank is driven by the company's weakness on the earnings estimate revision front over the past two months, as zero estimates have gone higher, compared to 4 lower for the current year time frame.

Meanwhile, the consensus estimate for SODA has also been moving in the wrong direction, as the current year figure has moved from $2.34 per share 60 days ago, to its current level at only $1.86/share. So while today's move higher was certainly welcomed news for investors in SODA, the weak earnings estimates could come back to bite hard, suggesting that now might be a good time to exit this stock until better earnings prospects materialize.

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