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Littelfuse (LFUS) Surges 3%: Is This an Indication of Further Gains?

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Littelfuse (LFUS - Free Report) shares ended the last trading session 3% higher at $275.94. 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 2.8% gain over the past four weeks.

The upswing in the company’s share price can be attributed to its strong growth prospects.  Littelfuse is benefiting from strong demand for its products, solid execution and disciplined cost management actions. Further, solid demand in the automotive and strength in several electronics and industrial markets is driving growth. The higher-than-expected demand for electronics from ongoing work, study and stay-at-home trends is a key catalyst.


Price and Consensus


This circuit protection manufacturer is expected to post quarterly earnings of $1.92 per share in its upcoming report, which represents a year-over-year change of +48.8%. Revenues are expected to be $427.39 million, up 23.5% 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 Littelfuse, the consensus EPS estimate for the quarter has been revised 1.3% 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 LFUS 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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