Pixelworks (PXLW) Moves 20.8% Higher: Will This Strength Last?

Pixelworks PXLW shares ended the last trading session 20.8% higher at $12.66. 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 36.9% gain over the past four weeks.

Pixelworks is benefiting from cost reduction actions, strategic partnerships, and advancements in mobile and TrueCut Motion ecosystems.

This maker of chips used in high-end digital video devices is expected to post quarterly loss of $1.08 per share in its upcoming report, which represents a year-over-year change of +30.8%. Revenues are expected to be $8.5 million, down 0.4% 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 Pixelworks, 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 PXLW 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 >>>>

Pixelworks is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Silvaco Group, Inc. SVCO, finished the last trading session 5.3% higher at $4.59. SVCO has returned -9.7% over the past month.

For Silvaco Group, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.09. This represents a change of -228.6% from what the company reported a year ago. Silvaco Group, Inc. currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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