Strength Seen in Synaptics (SYNA): Can Its 5.8% Jump Turn into More Strength?

Synaptics SYNA shares rallied 5.8% in the last trading session to close at $124.23. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13% loss over the past four weeks.

Synaptics is benefiting from strong growth in its Core IoT products, expanding adoption of its AI-enabled solutions in robotics and Edge AI, successful partnerships such as with Google, and increasing design wins across consumer, industrial, and medical device markets.

This maker of touch-screen technology is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of +19.8%. Revenues are expected to be $305.02 million, up 7.9% 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 Synaptics, 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 SYNA 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 >>>>

Synaptics belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Impinj PI, closed the last trading session 7.4% higher at $143.23. Over the past month, PI has returned -6.6%.

Impinj's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.81. Compared to the company's year-ago EPS, this represents a change of +1.3%. Impinj currently boasts a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Synaptics Incorporated (SYNA) : Free Stock Analysis Report

Impinj, Inc. (PI) : Free Stock Analysis Report

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

Zacks Investment Research

View Comments