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Strength Seen in Lattice (LSCC): Can Its 7.6% Jump Turn into More Strength?

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Lattice Semiconductor (LSCC - Free Report) shares soared 7.6% in the last trading session to close at $52.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% loss over the past four weeks.

Lattice Semiconductor extended its rally, driven by the fact that it is joining the Russell 1000 Index. This indicates the company’s upward movement from the Russell 2000 Index. Further, Lattice Semiconductor’s solid execution, strengthening product portfolio and solid momentum across various OEM server platforms, are instilling investor optimism in the stock.

This chipmaker is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +60%. Revenues are expected to be $158.03 million, up 25.5% 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 Lattice, 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 LSCC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Lattice is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Infineon Technologies AG (IFNNY - Free Report) , finished the last trading session 3.9% higher at $25.56. IFNNY has returned -17.6% over the past month.

For Infineon Technologies AG, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.45. This represents a change of +36.4% from what the company reported a year ago. Infineon Technologies AG currently has a Zacks Rank of #3 (Hold).


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