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Nova Ltd. (NVMI) shares soared 4.9% in the last trading session to close at $214.62. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.9% gain over the past four weeks.
The upswing in share price came after a number of analysts weighed in on the stock indicating optimism towards stock performance in the near-term. Citigroup raised shares of Nova from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $226 to $240. Benchmark upped their price objective on shares of Nova from $240 to $245 and gave the company a "buy" rating.
This maker of monitoring systems used in chip manufacturing is expected to post quarterly earnings of $1.82 per share in its upcoming report, which represents a year-over-year change of +33.8%. Revenues are expected to be $186.5 million, up 39% 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 Nova Ltd., 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 NVMI 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 >>>>
Nova Ltd. is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Rambus (RMBS), finished the last trading session 4% higher at $57.35. RMBS has returned -6.3% over the past month.
For Rambus , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.58. This represents a change of +23.4% from what the company reported a year ago. Rambus currently has a Zacks Rank of #3 (Hold).
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Nova Ltd. (NVMI) : Free Stock Analysis Report
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