FormFactor FORM shares rallied 5.1% in the last trading session to close at $83.46. 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 36.5% gain over the past four weeks.
FormFactor is benefiting from growing test intensity and test complexity. FORM dominates high-bandwidth memory, DRAM, network switches, and foundry and logic that bodes well for its prospects.
This integrated circuits diagnostic company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +29.6%. Revenues are expected to be $210.08 million, up 10.9% 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 FormFactor, the consensus EPS estimate for the quarter has been revised 5% 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 FORM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
FormFactor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Sequans SQNS, closed the last trading session 1.5% higher at $5.36. Over the past month, SQNS has returned 8.4%.
For Sequans, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.49. This represents a change of +38.8% from what the company reported a year ago. Sequans currently has a Zacks Rank of #3 (Hold).
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FormFactor, Inc. (FORM): Free Stock Analysis Report Sequans Communications S.A. (SQNS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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