Nikon Corp. (NINOY Quick QuoteNINOY - Free Report) shares rallied 8.2% in the last trading session to close at $10.03. 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 7.8% gain over the past four weeks.

The increase in share price can be attributed to Intel’s plan to spend $20 billion on building its foundry business thereby driving demand for Nikon’s semiconductor production equipment. Moreover, recovery in semiconductor capital investments is expected to boost Nikon’s top-line growth in the near term.

Price and Consensus

This company is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents a year-over-year change of -3.5%. Revenues are expected to be $1.18 billion, down 12.2% 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 Nikon Corp., the consensus EPS estimate for the quarter has been revised 6.3% 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 NINOY 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 >>>>