Innovative Solutions and Support, Inc. (ISSC) shares rallied 15.8% in the last trading session to close at $22.3. 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 61.8% gain over the past four weeks.
The company has a strong position in the aerospace market because it designs and manufactures essential flight systems. Many legacy platforms, like the F-16 fighter jet, are being upgraded with advanced digital avionics instead of being replaced entirely. This creates steady demand for the company’s products. At the same time, the firm also benefits from new aircraft platform development, where its systems are integrated from the design stage, further boosting sales.
The company is well-positioned to take advantage of industry-wide modernization trends. Its strong financial performance and expanding engineering capabilities reinforce its competitive advantage, making it an attractive investment opportunity with solid long-term growth potential.
This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +150%. Revenues are expected to be $18.38 million, up 15.1% 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 Innovative Solutions and Support, the consensus EPS estimate for the quarter has been revised 2.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ISSC 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 >>>>
Innovative Solutions and Support belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Rocket Lab Corporation (RKLB), closed the last trading session 6% higher at $91.8. Over the past month, RKLB has returned 56%.
Rocket Lab Corporation's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. Compared to the company's year-ago EPS, this represents a change of +50%. Rocket Lab Corporation currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Innovative Solutions and Support, Inc. (ISSC): Free Stock Analysis Report Rocket Lab Corporation (RKLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
