QuickLogic QUIK shares soared 11.5% in the last trading session to close at $18.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 85% gain over the past four weeks.
The optimism surrounding the stock can be attributed to the company witnessing increased demand for its eFPGA Hard IP solutions, supported by growing use in defense, aerospace and data center applications. Further, QuickLogic is benefiting from progress in its strategic radiation-hardened FPGA initiatives, including receiving test chips and initial orders for development kits, which signal future revenue opportunities and expectations of 50% to 100% revenue growth in 2026 are also supporting investor confidence.
This maker of chips for mobile and portable electronics manufacturers is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +14.3%. Revenues are expected to be $5.5 million, up 27.3% 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 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 belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Ambiq Micro, Inc. AMBQ, closed the last trading session 0.3% higher at $40.49. Over the past month, AMBQ has returned 39.2%.
For Ambiq Micro, Inc., the consensus EPS estimate for the upcoming report has changed +1.7% over the past month to -$0.36. This represents a change of +98.1% from what the company reported a year ago. Ambiq Micro, Inc. currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).