U.S. markets closed
  • S&P Futures

    3,753.75
    -35.75 (-0.94%)
     
  • Dow Futures

    30,505.00
    -276.00 (-0.90%)
     
  • Nasdaq Futures

    11,416.25
    -113.25 (-0.98%)
     
  • Russell 2000 Futures

    1,686.60
    -21.40 (-1.25%)
     
  • Crude Oil

    105.92
    +0.16 (+0.15%)
     
  • Gold

    1,804.50
    -2.80 (-0.15%)
     
  • Silver

    20.07
    -0.29 (-1.41%)
     
  • EUR/USD

    1.0462
    -0.0021 (-0.20%)
     
  • 10-Yr Bond

    2.9720
    -0.1210 (-3.91%)
     
  • Vix

    28.71
    +0.55 (+1.95%)
     
  • GBP/USD

    1.2130
    -0.0045 (-0.37%)
     
  • USD/JPY

    135.1330
    -0.5950 (-0.44%)
     
  • BTC-USD

    20,121.98
    +56.36 (+0.28%)
     
  • CMC Crypto 200

    430.93
    -0.53 (-0.12%)
     
  • FTSE 100

    7,169.28
    -143.04 (-1.96%)
     
  • Nikkei 225

    26,159.53
    -233.51 (-0.88%)
     

Will Lattice (LSCC) Gain on Rising Earnings Estimates?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Lattice Semiconductor (LSCC) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this chipmaker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Lattice, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The earnings estimate of $0.33 per share for the current quarter represents a change of +50% from the number reported a year ago.

Over the last 30 days, the Zacks Consensus Estimate for Lattice has increased 16% because three estimates have moved higher compared to no negative revisions.

Current-Year Estimate Revisions

The company is expected to earn $1.40 per share for the full year, which represents a change of +32.08% from the prior-year number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Lattice. Over the past month, five estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 7.76%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Lattice currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Lattice shares have added 12.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.


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

Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report

To read this article on Zacks.com click here.