QuickLogic QUIK shares rallied 7.2% in the last trading session to close at $15.37. 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 10.6% loss over the past four weeks.
The growing optimism over the stock can be attributable to the rising demand for its ultra-low-power multi-core voice-enabled SoCs, embedded field programmable gate array (FPGA) IP and Endpoint AI solutions. QUIK is gaining from the growing demand for its IP-related products. Strength in its technology and Australis IP generator is noteworthy.
A solid momentum in QuickLogic’s Strategic Radiation Hardened FPGA Technology is another major positive. Growing contributions from large government contracts for this particular technology are driving the company’s top-line growth. Apart from this, the company is benefiting from increasing conversions from funnel opportunities, which are leading to new bookings.
This maker of chips for mobile and portable electronics manufacturers is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +250%. Revenues are expected to be $6.2 million, up 50.1% 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 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 #1 (Strong Buy). 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, Valens Semiconductor, Ltd. VLN, closed the last trading session 1.3% higher at $2.36. Over the past month, VLN has returned -0.9%.
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