Synaptics (SYNA) Soars 14.1%: Is Further Upside Left in the Stock?
Synaptics SYNA shares rallied 14.1% in the last trading session to close at $121.1. 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 8.7% gain over the past four weeks.
Synaptics is building a stronger edge AI and connectivity mix as Core IoT expands through wireless products and the Astra platform.
This maker of touch-screen technology is expected to post quarterly earnings of $1.23 per share in its upcoming report, which represents a year-over-year change of +12.8%. Revenues are expected to be $318.16 million, up 8.8% 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 Synaptics, 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 SYNA 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 >>>>
Synaptics belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, ASE Technology Hldg ASX, closed the last trading session 6.1% higher at $47.45. Over the past month, ASX has returned 19.5%.
ASE Technology Hldg's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.34. Compared to the company's year-ago EPS, this represents a change of +112.5%. ASE Technology Hldg currently boasts a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).
