nLight (LASR) Surges 5.1%: Is This an Indication of Further Gains?

nLight LASR shares rallied 5.1% in the last trading session to close at $46.09. 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 16.8% gain over the past four weeks.

nLight benefits from company's vertically integrated and industry-leading high-power laser technology developed over the past two decades alongwith defense and aerospace sector growth.

This laser maker is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +136.7%. Revenues are expected to be $79.23 million, up 67.2% 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 nLight, the consensus EPS estimate for the quarter has been revised 25% 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 LASR 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 >>>>

nLight belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Broadcom Inc. AVGO, closed the last trading session 0.8% higher at $310.51. Over the past month, AVGO has returned -10.3%.

For Broadcom Inc., the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $2.03. This represents a change of +26.9% from what the company reported a year ago. Broadcom Inc. currently has a Zacks Rank of #1 (Strong Buy).

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

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