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Can Ambarella (AMBA) Run Higher on Strong Earnings Estimate Revisions?

Ambarella, Inc. AMBA is a leading developer of semiconductor processing solutions that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on AMBA’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Ambarella could be a solid choice for investors.
 
Current Quarter Estimates for AMBA

In the past 30 days, six estimates have gone higher for Ambarella while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 5 cents a share 30 days ago, to 21 cents today, a move of 320%.
 
Current Year Estimates for AMBA

Meanwhile, Ambarella’s current year figures are also looking quite promising, with eight estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 11 cents per share 30 days ago to 50 cents per share today, an increase of 354.5%. 

Ambarella, Inc. Price and Consensus

Ambarella, Inc. Price and Consensus

Ambarella, Inc. price-consensus-chart | Ambarella, Inc. Quote

Bottom Line

The stock has also started to move higher lately, adding 33.6% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #2 (Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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