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FormFactor (FORM) Soars 5.7%: Is Further Upside Left in the Stock?

·2 min read

FormFactor (FORM) shares ended the last trading session 5.7% higher at $39.61. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.6% loss over the past four weeks.

FormFactor extended its rally, driven by growing semiconductor content, increasing 5G and data center spending, and strong demand for foundry and logic, which are constantly driving its top-line. Further, the company is capitalizing well on strong demand for wafer test and measurement, which remains major positive.

This integrated circuits diagnostic company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +19.4%. Revenues are expected to be $202.9 million, up 7.9% 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 FormFactor, 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 FORM 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 >>>>

FormFactor is part of the Zacks Electronics - Semiconductors industry. Diodes (DIOD), another stock in the same industry, closed the last trading session 4% higher at $66.40. DIOD has returned -13.6% in the past month.

For Diodes , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.75. This represents a change of +45.8% from what the company reported a year ago. Diodes currently has a Zacks Rank of #1 (Strong Buy).

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