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Rada Electronics Industries Limited (RADA) Moves 7.1% Higher: Will This Strength Last?

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Rada Electronics Industries Limited (RADA - Free Report) shares ended the last trading session 7.1% higher at $14.38. 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 32.1% gain over the past four weeks.

The latest hypersonic missile attack made by Russia on Ukraine have boosted investors’ confidence in defense stocks, particularly those that are involved in missile and radar manufacturing like RADA Electronic Industries. This must have resulted the latest price hike in RADA’s shares.

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 +50%. Revenues are expected to be $32 million, up 26.9% 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 Rada Electronics Industries Limited, 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 RADA 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 >>>>

Rada Electronics Industries Limited is part of the Zacks Aerospace - Defense Equipment industry. Teledyne Technologies (TDY - Free Report) , another stock in the same industry, closed the last trading session 2.6% higher at $448.74. TDY has returned 4.2% in the past month.

Teledyne's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.10. Compared to the company's year-ago EPS, this represents a change of +35.8%. Teledyne currently boasts a Zacks Rank of #3 (Hold).


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