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QuickLogic (QUIK) Soars 11%: Is Further Upside Left in the Stock?

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QuickLogic (QUIK - Free Report) shares soared 11% in the last trading session to close at $6.58. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22% loss over the past four weeks.

The upswing in QuickLogic’s share price can be attributed to growing optimism over its prospects driven by an expanding sensor processing portfolio. Moreover, the company’s extending partner base has been a key catalyst.

 

Price and Consensus

Price Consensus Chart for QUIK

 

This maker of chips for mobile and portable electronics manufacturers is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +81.1%. Revenues are expected to be $2.5 million, up 15.7% 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 QuickLogic, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on QUIK 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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