MKS Instruments MKSI shares soared 4.1% in the last trading session to close at $160.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 9.1% loss over the past four weeks.
The upside in share price can be attributed to MKS improving prospects driven by an improving semiconductor market and increased demand, particularly for Power Solutions. Continuing strong demand for its plasma and reactive gas solutions, especially in semiconductor deposition applications, is a key catalyst.
This maker of analysis and processing equipment for semiconductor companies is expected to post quarterly earnings of $2.93 per share in its upcoming report, which represents a year-over-year change of +80.9%. Revenues are expected to be $744.84 million, up 36.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For MKS Instruments, the consensus EPS estimate for the quarter has been revised 0.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MKSI 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 >>>>
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