Top Ranked Stock Surging Today: Applied Micro Circuits (AMCC) - Stocks In The News
In Tuesday trading, equities finished pretty flat across the board with both the Dow and the S&P 500 finishing within 0.02% of breakeven for the session. However, despite this flat session overall, there was a breakout in one stock; Applied Micro Circuits ( AMCC ) .
AMCC in Focus
Shares of this small cap tech stock surged by nearly 12% on volume that was over three times a normal session. This move also continues the positive recent trend for this security, helping this stock to easily beat out the S&P 500 over the past one month.
Today's sharp move higher though was largely thanks to initiation of coverage by an analyst at Canaccord. The new analyst for the stock, Matthew Ramsay, gave the stock a buy rating and a price target of $16/share.
In his report, Ramsay cited their first to market position in a segment of the enterprise server market which should bode well for this company in the near term. Additionally, other analysts reiterated their positive ratings on the stock, marking a pretty good day for the security.
We have had a Zacks Rank #1 (Strong Buy) on AMCC so we have been looking for outperformance from this stock in the near term. Plus, with an industry rank in the top 20%, there is plenty of reason to like the broader space too.
Our reasoning behind the solid rank comes from some recent earnings estimate revision activity, as the consensus estimate has been moving higher for AMCC over the past two months. The current quarter is now trending close to break even while the full year estimate has moved into positive territory, going from a loss of six cents a share two months ago to a profit of three cents a share today.
It will likely be tough for AMCC to match growth estimates though, as the current year calls for growth of about 120%, while the next year consensus calls for a whopping 3,600% in EPS growth. Obviously, the company will have to see much more widespread adoption of its technology in order to hit this mark, though the recent trend and now more positive coverage from analysts is encouraging in the short run.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.