Vishay Precision VPG shares soared 15.9% in the last trading session to close at $141.7. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22.7% gain over the past four weeks.
The optimism surrounding the stock can be attributed to strong demand for Vishay Precision’s Sensors business, driven by rising orders from semiconductor equipment, AI data centers and fiber optics applications. Further, Vishay Precision is benefiting from increasing demand in aerospace, defense and space markets, along with growing traction in humanoid robotics applications, supporting its long-term growth outlook.
This precision sensors and systems producer is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +11.8%. Revenues are expected to be $87.41 million, up 16.3% 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 Vishay, the consensus EPS estimate for the quarter has been revised 46.2% 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 VPG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Vishay is a member of the Zacks Electronics - Miscellaneous Components industry. One other stock in the same industry, Vicor VICR, finished the last trading session 8.2% higher at $298.06. VICR has returned -10.9% over the past month.
For Vicor, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.46. This represents a change of -49.5% from what the company reported a year ago. Vicor currently has a Zacks Rank of #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).