Silicon Laboratories Inc.
) just hit a fresh high moving above the psychologically-important
$50 per share level for the first time. This mark is very close to
the 52 week high for Silicon Laboratories which has added more than
25% in the last 12 weeks, suggesting that decent momentum is
present in SLAB.
But after this fresh 52 week high and the positive price momentum,
investors have to be wondering if Silicon Laboratories can continue
to push higher or if a pullback is overdue. One place to find the
answer could be in the recent earnings estimate revision activity
that is taking place in SLAB.
Despite the move higher in Silicon Laboratories' stock price, we
have seen pretty negative earnings estimate revisions as of late,
which means that analysts are becoming more bearish about SLAB's
prospects. In fact, 2 estimates have gone lower in the past two
months compared to no upward revision, while the consensus estimate
has moved in the wrong direction over the same time frame too.
We actually give SLAB a Zacks Rank #4 (Sell) based on this
information and think that the move higher for this company might
be a bit overdone. So while trading has certainly been good lately,
estimates suggest that this run could soon enter a consolidation
period and that a pullback may be ahead for this 'sell' ranked
stock in the near term.
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SILICON LAB INC (SLAB): Free Stock Analysis
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