M/A-Com (MTSI) Soars 21.6%: Is Further Upside Left in the Stock?

M/A-Com MTSI shares ended the last trading session 21.6% higher at $106.59. 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 13.2% loss over the past four weeks.

The upswing was likely driven by a broader market rally following US President Donald Trump’s announcement of pausing the reciprocal tariffs for 90 days. However, a baseline tariff of 10% on imports would continue to apply.

This chipmaker is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of +42.4%. Revenues are expected to be $230.08 million, up 27% 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 M/A-Com, 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 MTSI 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 >>>>

M/A-Com belongs to the Zacks Semiconductor - Analog and Mixed industry. Another stock from the same industry, ON Semiconductor Corp. ON, closed the last trading session 22.7% higher at $39.20. Over the past month, ON has returned -25.5%.

For ON Semiconductor Corp.

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

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