Ouster (OUST) Soars 14.4%: Is Further Upside Left in the Stock?

Ouster, Inc. OUST shares ended the last trading session 14.4% higher at $46.57. 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 31.9% gain over the past four weeks.

The optimism surrounding the stock can be attributed to rising software adoption, expanding industrial automation and smart infrastructure demand, and increasing AI-driven opportunities. Ouster’s customer diversification, continued product innovation and confidence in its long-term strategy of combining digital lidar hardware with high-margin perception software to drive scalable growth.

This company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of +18.4%. Revenues are expected to be $50.77 million, up 44.8% 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 Ouster, the consensus EPS estimate for the quarter has been revised 10.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on OUST 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 >>>>

Ouster is part of the Zacks Electronics - Miscellaneous Components industry. TE Connectivity TEL, another stock in the same industry, closed the last trading session 2.6% higher at $217.64. TEL has returned 5.4% in the past month.

For TE Connectivity, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.81. This represents a change of +23.8% from what the company reported a year ago. TE Connectivity currently has a Zacks Rank of #3 (Hold).

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

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