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Kulicke and Soffa (KLIC) Stock Jumps 5.4%: Will It Continue to Soar?

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Kulicke and Soffa (KLIC - Free Report) shares ended the last trading session 5.4% higher at $44.88. 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 17.6% loss over the past four weeks.

Kulicke and Soffa is benefiting from strong adoption of its solutions in the automotive, semiconductor and the battery assembly space due to ongoing transition to electric vehicles and autonomous driving.

This semiconductor equipment maker is expected to post quarterly earnings of $1.55 per share in its upcoming report, which represents a year-over-year change of -17.1%. Revenues are expected to be $365 million, down 14% 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 Kulicke and Soffa, 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 KLIC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Kulicke and Soffa is a member of the Zacks Electronics - Manufacturing Machinery industry. One other stock in the same industry, Ultra Clean Holdings (UCTT - Free Report) , finished the last trading session 4.4% higher at $30.42. UCTT has returned -11.5% over the past month.

Ultra Clean's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.03. Compared to the company's year-ago EPS, this represents a change of +4%. Ultra Clean currently boasts a Zacks Rank of #3 (Hold).

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