Allied Motion (AMOT) Moves 5.1% Higher: Will This Strength Last?
Allied Motion Technologies (AMOT) shares rallied 5.1% in the last trading session to close at $29.08. 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 23.2% loss over the past four weeks.
The company is witnessing healthy deamnd trends despite continued supply chain headwinds. This, in turn, is generating solid revenues across most of the operating segments. The company also has a strong order backlog that is likely to generate a steady revenue stream. Incremental contribution from acquisitions are further aiding top-line growth. A holistic growth model with balanced organic and inorganic growth is likely to benefit the company in the long run.
This motion control product maker is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -14.6%. Revenues are expected to be $126.9 million, up 22.6% 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 Allied Motion, 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 AMOT 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 >>>>
Allied Motion is part of the Zacks Instruments - Control industry. Sensata (ST), another stock in the same industry, closed the last trading session 2.3% lower at $37.65. ST has returned -10.5% in the past month.
Sensata's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.85. Compared to the company's year-ago EPS, this represents a change of -2.3%. Sensata currently boasts a Zacks Rank of #4 (Sell).
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
Allied Motion Technologies, Inc. (AMOT) : Free Stock Analysis Report
Sensata Technologies Holding N.V. (ST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
