QuickLogic QUIK shares rallied 8.9% in the last trading session to close at $7.45. 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 19% loss over the past four weeks.
The optimism surrounding the stock can be attributed to QuickLogic's contract wins with defense industrial base customers and the growing traction in higher-value eFPGA hard IP deals on advanced nodes, along with progress on its internally funded SRH FPGA test chip, which is expected to drive future customer engagement and revenue growth.
This maker of chips for mobile and portable electronics manufacturers is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -375%. Revenues are expected to be $3.5 million, down 38.6% 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 QuickLogic, 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 QUIK 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 >>>>
QuickLogic is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Silvaco Group, Inc. SVCO, finished the last trading session 4.3% lower at $3.53. SVCO has returned -18% over the past month.
For Silvaco Group, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. This represents a change of -146.7% from what the company reported a year ago. Silvaco Group, Inc. currently has a Zacks Rank of #3 (Hold).
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QuickLogic Corporation (QUIK): Free Stock Analysis Report Silvaco Group, Inc. (SVCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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