Applied Signal Technology, Inc.

Shares are indeed up for the industrial and defense communications company, but volatility is rampant. APSG was trading near $20, but has since set a new 52-week high and is trading in the mid-$20 range.

Surprises Continue

On June 2nd Applied Signal released its second-quarter results and once again beat analysts' expectations. Net income was $4.1 million, more than double the same period one year ago. Earnings per share came in at 31 cents, easily topping the consensus of just 20 cents.

The quarter was driven by an 18% boost in revenues, up to $53.5 million. It was the company's third consecutive earnings surprise.

Analysts React

Following the report the consensus for fiscal 2009 and 2010 jumped immediately. The average estimate for this year is $1.09, up 19 cents since the report. Next year's consensus is $1.17, an 18 cent climb.

Given these projections year-over-year growth would 73% and 7%, respectively.

The Chart

Shares of APSG have filled the gap created by the strong quarterly report and rebounded quickly. Now that the stock is back in the range set immediately after the earnings number, that $24 level should act as support. Take a look below.

Read the April 21st Feature Here

Last Week's Aggressive Growth Zacks Rank Buy Stocks

Jo-Ann Stores, Inc. (JAS - Snapshot Report) is expected to grow 30% over each of the next two years and recently topped analyst estimates. Read Full Article.

Perfect World Co., Ltd (PWLD) continues to gain after a great quarter and recently raising guidance. Read Full Article.

012 Smile.Communications (SMLC - Snapshot Report) has crushed Wall Street estimates and analysts are expecting huge growth rates to continue. Read Full Article.

Noven Pharmaceuticals, Inc. (NOVN) is coming off of a great quarterly report in which revenues were up 29% and resulted in another earnings surprise.

Read Full Article.