Strength Seen in Littelfuse (LFUS): Can Its 4.9% Jump Turn into More Strength?

Littelfuse LFUS shares ended the last trading session 4.9% higher at $160.04. 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 30.6% loss over the past four weeks.

Littelfuse is benefiting from strong design wins and growth in key sectors like data centers, industrial safety, and HVAC.

This circuit protection manufacturer is expected to post quarterly earnings of $1.82 per share in its upcoming report, which represents a year-over-year change of +3.4%. Revenues are expected to be $539.67 million, up 0.8% 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 Littelfuse, 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 LFUS 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 >>>>

Littelfuse is a member of the Zacks Electronics - Miscellaneous Components industry. One other stock in the same industry, Universal Display Corp. OLED, finished the last trading session 0.5% lower at $112.84. OLED has returned -29% over the past month.

Universal Display's consensus EPS estimate for the upcoming report has changed +1.3% over the past month to $1.03. Compared to the company's year-ago EPS, this represents a change of -13.5%. Universal Display currently boasts a Zacks Rank of #3 (Hold).

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

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