Stratasys (SSYS) Surges 9.0%: Is This an Indication of Further Gains?
Stratasys SSYS shares rallied 9% in the last trading session to close at $20.90. 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 9.7% gain over the past four weeks.
The upswing came after 3D Systems enhanced its takeover bidding offer for Stratasys for the second time. Under the revised cash-stock bidding proposal, 3D Systems is offering $7.50 in cash and 1.5444 shares of the combined company for each share of Stratasys.
This maker of 3D printers is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -250%. Revenues are expected to be $153.24 million, down 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 Stratasys, 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 SSYS 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 >>>>
Stratasys is a member of the Zacks Computer - Peripheral Equipment industry. One other stock in the same industry, Mercury Systems MRCY, finished the last trading session 0.2% lower at $35.43. MRCY has returned -12.3% over the past month.
Mercury Systems' consensus EPS estimate for the upcoming report has changed +176.9% over the past month to $0.54. Compared to the company's year-ago EPS, this represents a change of -33.3%. Mercury Systems currently boasts a Zacks Rank of #5 (Strong Sell).
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