Enovix Corp’s Earnings: Will the Stock Continue Its Surge? ENVX is gearing up for its third-quarter earnings call on Tuesday. With the stock price soaring 60% in just six months, investors are eager to see if this momentum can persist.

Wall Street analysts project that the company will report a loss of 20 cents per share accompanied by revenue of $4.11 million for the quarter.

According to JPMorgan analyst Bill Peterson, the market is keenly observing any significant announcements. The elevated short interest indicates that a positive report could result in a sharp uptick in the stock price.

Earnings Expectations and Potential for a Short Squeeze

The current short interest for Enovix stock stands at 43.87%, according to Benzinga Pro data.

Peterson suggests that a short squeeze may be on the horizon if Enovix reveals favorable developments. “With short interest remaining high, any positive commentary during the Q3 earnings could amplify stock movements,” he comments. Investors are particularly interested in updates regarding customer validation, Site Acceptance Testing, and a prospective second smartphone OEM deal, which might involve a Chinese manufacturer.

Although Peterson maintains a long-term optimistic view, he has revised Enovix’s price target from $18 to $15 due to broader industry challenges. Still, he holds an Overweight rating, expressing a cautious optimism regarding Enovix’s revenue growth from 2025 onwards.

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Technical Analysis Indicates Potential Weakness

Chart created using Benzinga Pro

• Bearish Momentum: Currently priced at $10.41, Enovix is trading below its five, 20, and 50-day exponential moving averages (EMAs), indicating selling pressure.
• Mixed Signals from Moving Averages: The 50-day simple moving average (SMA) stands at $10.05, hinting at potential bullish movement. However, the eight-day, 20-day, and 200-day SMAs are showing bearish trends, suggesting a struggle between short-term selling and long-term positivity.
• MACD and RSI Indicators: The Moving Average Convergence Divergence (MACD) is in bullish territory at 0.22, while the Relative Strength Index (RSI) is at 46.31, indicating a neutral position for the stock.

Despite an optimistic outlook from analysts, technical indicators suggest that Enovix may face challenges in the near term.

All eyes will be on Tuesday’s earnings call to see if Enovix can provide news that triggers a short squeeze or if the bears will find their moment. Investors should prepare for what might be a volatile week ahead for Enovix stock.

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Image created using artificial intelligence via Midjourney.