Silicon Laboratories (SLAB Quick QuoteSLAB - Free Report) shares rallied 6.9% in the last trading session to close at $154.60. 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 5.6% gain over the past four weeks.

Silicon Laboratories extended its rally, driven by the latest announcement related to the divestiture of its Infrastructure & Automotive business. Notably, the company has entered into a definitive agreement to sell the underlined business to Skyworks Solutions in an all-cash asset transaction valued at $2.75 billion.

Price and Consensus

This chipmaker is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +10.1%. Revenues are expected to be $242.26 million, up 12.7% 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 Silicon Labs, the consensus EPS estimate for the quarter has been revised 2.6% 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 SLAB 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 >>>>