Vicor (VICR) Surges 17.7%: Is This an Indication of Further Gains?

Vicor VICR shares ended the last trading session 17.7% higher at $216.39. 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 15.4% loss over the past four weeks.

Vicor is benefitting from strong growth in advanced product sales, increased royalty income from new licensing agreements, and expanding demand for its high-efficiency power solutions in AI, industrial, and aerospace markets.

This modular power components company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of +19.1%. Revenues are expected to be $160 million, up 44.9% 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 Vicor, 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 VICR 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 >>>>

Vicor is a member of the Zacks Electronics - Miscellaneous Components industry. One other stock in the same industry, CTS CTS, finished the last trading session 1.1% higher at $57.54. CTS has returned -1.9% over the past month.

CTS' consensus EPS estimate for the upcoming report has changed -3.7% over the past month to $0.66. Compared to the company's year-ago EPS, this represents a change of +10%. CTS currently boasts a Zacks Rank of #2 (Buy).

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

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