United Microelectronics Corporation UMC shares soared 15.9% in the last trading session to close at $10.78. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.4% gain over the past four weeks.
United Microelectronics Corporation is benefiting from increased demand for 22-nanometer technology, smartphone and notebook sales, and a broad-based market recovery.
This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +20%. Revenues are expected to be $1.88 billion, up 2.1% 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 United Microelectronics, 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 UMC 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 >>>>
United Microelectronics belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Diodes DIOD, closed the last trading session 1% lower at $56.34. Over the past month, DIOD has returned 12.5%.
Diodes' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.26. Compared to the company's year-ago EPS, this represents a change of -3.7%. Diodes currently boasts a Zacks Rank of #3 (Hold).
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United Microelectronics Corporation (UMC): Free Stock Analysis Report Diodes Incorporated (DIOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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