Kimball Electronics KE shares ended the last trading session 5.8% higher at $33.13. 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 14.2% gain over the past four weeks.
Kimball Electronics is benefiting from improved margins, consistent positive cash flow, a strategic focus on the Medical CMO segment, and enhanced capacity utilization across its operations.
This electronics manufacturing services company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +22.7%. Revenues are expected to be $352 million, down 6% 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 Kimball Electronics, 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 KE 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 >>>>
Kimball Electronics belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, One Stop Systems, Inc. OSS, closed the last trading session 3% higher at $6.79. Over the past month, OSS has returned 26.7%.
One Stop Systems' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.01. Compared to the company's year-ago EPS, this represents a change of +103.3%. One Stop Systems currently boasts a Zacks Rank of #2 (Buy).
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Kimball Electronics, Inc. (KE): Free Stock Analysis Report One Stop Systems, Inc. (OSS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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