Aehr Test Systems AEHR shares rallied 9.3% in the last trading session to close at $12.75. 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% gain over the past four weeks.
The optimism surrounding the stock could be attributed to the company’s move to diversify its business and enter new markets such as the gallium nitride (GaN) wafer-level burn-in (WLBI) market. Speculation of Navitas Semiconductor being one of its customers is fueling investors’ optimism about the company’s long-term prospects.
This company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of -100%. Revenues are expected to be $15 million, down 9.6% 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 Aehr Test Systems, 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 AEHR 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 >>>>
Aehr Test Systems belongs to the Zacks Electronics - Measuring Instruments industry. Another stock from the same industry, Camtek CAMT, closed the last trading session 2.5% higher at $84.1. Over the past month, CAMT has returned 25.8%.
Camtek's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.79. Compared to the company's year-ago EPS, this represents a change of +19.7%. Camtek currently boasts a Zacks Rank of #3 (Hold).
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Aehr Test Systems (AEHR): Free Stock Analysis Report Camtek Ltd. (CAMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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