AXT AXTI shares rallied 17% in the last trading session to close at $6.06. 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 9.1% gain over the past four weeks.
AXT is benefiting from increased demand for indium phosphide substrates driven by AI-related data center connectivity and higher-speed transceiver applications.
This semiconductor materials supplier is expected to post quarterly loss of $0.12 per share in its upcoming report, which represents a year-over-year change of -140%. Revenues are expected to be $19.91 million, down 15.8% 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 AXT, 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 AXTI 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 >>>>
AXT is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Sequans SQNS, finished the last trading session 0.9% higher at $7.07. SQNS has returned -23.6% over the past month.
For Sequans, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.8. This represents a change of -106.2% from what the company reported a year ago. Sequans currently has 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.
