Synaptics SYNA shares ended the last trading session 10.5% higher at $93.86. 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 16.1% gain over the past four weeks.
The optimism surrounding the stock can be attributed to its shift towards high-margin edge AI business, strong growth in IoT and wireless connectivity, rising demand from robotics and humanoids, traction in its Astra platform, premium market resilience, and expanding design wins, all supporting long-term revenue growth, margin expansion, and stronger competitive positioning across multiple end markets.
This maker of touch-screen technology is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +12.2%. Revenues are expected to be $290.12 million, up 8.8% 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 Synaptics, the consensus EPS estimate for the quarter has been revised 0.5% 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 SYNA 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 >>>>
Synaptics belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, GlobalFoundries Inc. GFS, closed the last trading session 0.4% higher at $61.79. Over the past month, GFS has returned 38.1%.
For GlobalFoundries, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $0.35. This represents a change of +2.9% from what the company reported a year ago. GlobalFoundries 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.
