Adeia (ADEA) Moves 5.2% Higher: Will This Strength Last?

Adeia (ADEA) shares ended the last trading session 5.2% higher at $13.74. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.5% gain over the past four weeks.

The stock is benefiting from Adeia’s commitment to innovation, with a strategic focus on high-growth media and semiconductor markets poised to accelerate future technology adoption.

This provider of chip technology for small electronic devices is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -21.4%. Revenues are expected to be $88.02 million, up 0.8% 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 Adeia, 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 ADEA 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 >>>>

Adeia belongs to the Zacks Technology Services industry. Another stock from the same industry, QXO, Inc. (QXO), closed the last trading session 5.7% higher at $23.79. Over the past month, QXO has returned 33.8%.

For QXO INC, the consensus EPS estimate for the upcoming report has changed +280% over the past month to $0.09. This represents a change of -97.2% from what the company reported a year ago. QXO INC currently has a Zacks Rank of #2 (Buy).

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

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