Applied Optoelectronics AAOI shares ended the last trading session 18.9% higher at $113.9. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 77.5% gain over the past four weeks.
Applied Optoelectronics is benefiting from strong demand for its CATV and data center products, particularly 400G and 800G solutions.
This maker of fiber optic products used by cable TV providers is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -150%. Revenues are expected to be $156.46 million, up 56.7% 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 Applied Optoelectronics, the consensus EPS estimate for the quarter has been revised 6.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AAOI 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 >>>>
Applied Optoelectronics is part of the Zacks Electronics - Semiconductors industry. QuickLogic QUIK, another stock in the same industry, closed the last trading session 1.1% higher at $9.36. QUIK has returned 15.8% in the past month.
QuickLogic's consensus EPS estimate for the upcoming report has changed -37.5% over the past month to -$0.06. Compared to the company's year-ago EPS, this represents a change of +14.3%. QuickLogic currently boasts a Zacks Rank of #4 (Sell).
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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.
