Methode MEI shares rallied 21.2% in the last trading session to close at $14.02. 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 6.6% gain over the past four weeks.
Methode benefits from strong demand for off-road lighting and power distribution solutions supporting data centers, growing exposure to higher-growth industrial power markets, data center infrastructure investments and vehicle electrification opportunities.
This maker of electrical components for the auto and computer industries is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +85.7%. Revenues are expected to be $228.82 million, down 11% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Methode, 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 MEI 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 >>>>
Methode belongs to the Zacks Electronics - Connectors industry. Another stock from the same industry, Amphenol APH, closed the last trading session 1.8% higher at $163.96. Over the past month, APH has returned 30.9%.
For Amphenol, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.15. This represents a change of +42% from what the company reported a year ago. Amphenol currently has a Zacks Rank of #2 (Buy).
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpMethode Electronics, Inc. (MEI) : Free Stock Analysis Report
Amphenol Corporation (APH) : Free Stock Analysis Report
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.
