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Strength Seen in Konica Minolta Inc. (KNCAY): Can Its 8.2% Jump Turn into More Strength?

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Konica Minolta Inc. (KNCAY - Free Report) shares ended the last trading session 8.2% higher at $10.95. 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 1.3% loss over the past four weeks.

The increase in share price can be attributed to the news that Konica Minolta division Konica Minolta Precision Medicine (KMPM) has entered into a five-year collaboration with Amazon Web Services (AWS), that will help it to develop LATTICE. AWS parent Amazon has also made a financial investment in KMPM as part of the collaboration.

Price and Consensus

Price Consensus Chart for Konica Minolta Inc.

This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +71.4%. Revenues are expected to be $2.21 billion, down 3.8% 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 Konica Minolta Inc., the consensus EPS estimate for the quarter has been revised 22.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on KNCAY 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 >>>>

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