Can Silicon Motion Technology (SIMO) Run Higher on Strong Earnings Estimate Revisions?

Silicon Motion Technology Corp.SIMO is a semiconductor company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on SIMO’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Silicon Motion Technology could be a solid choice for investors.

Current Quarter Estimates forSIMO

In the past 30 days, 2 estimates has gone higher for Silicon Motion Technology while none has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 45 cents a share 30 days ago, to 55 cents today, a move of 22.2%.

Current Year Estimates for SIMO

Meanwhile, Silicon Motion Technology current year figures are also looking quite promising, with 2 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $2.02 per share 30 days ago, to $2.29 per share today, a move of 13.4%.

Bottom Line

The stock has also started to move higher lately, adding 13.1% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future.

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