Veeco Instruments VECO shares soared 8.8% in the last trading session to close at $34.39. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10% gain over the past four weeks.
Veeco Instruments benefits mainly from AI-driven semiconductor demand, advanced packaging growth, memory expansion and next-gen technologies like EUV and HAMR.
This precision manufacturing equipment maker is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -46%. Revenues are expected to be $160 million, down 4.4% 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 Veeco, the consensus EPS estimate for the quarter has been revised 73.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on VECO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Veeco is part of the Zacks Electronics - Manufacturing Machinery industry. Kulicke and Soffa KLIC, another stock in the same industry, closed the last trading session 4.2% higher at $68.04. KLIC has returned -5.5% in the past month.
For Kulicke and Soffa, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.67. This represents a change of +228.9% from what the company reported a year ago. Kulicke and Soffa currently has a Zacks Rank of #1 (Strong Buy).
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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.
