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Entegris (ENTG) Surges 10.9%: Is This an Indication of Further Gains?

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Entegris (ENTG - Free Report) shares ended the last trading session 10.9% higher at $103.90. 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 13.3% loss over the past four weeks.

The recent surge in Entegris’ share price can be attributed to rising demand for the company’s solutions like liquid filtration, advanced deposition materials and surface preparation solutions. The company is also increasing its market share among its peers in their capex driven solutions including fluid handling, FOUPs and gas filtration and purifications products.

This maker of equipment used in chip manufacturing is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +23.5%. Revenues are expected to be $670.67 million, up 17.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Entegris, 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 ENTG 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 >>>>

Entegris belongs to the Zacks Electronics - Manufacturing Machinery industry. Another stock from the same industry, Kulicke and Soffa (KLIC - Free Report) , closed the last trading session 5.4% higher at $44.88. Over the past month, KLIC has returned -17.6%.

For Kulicke and Soffa, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.55. This represents a change of -17.1% from what the company reported a year ago. Kulicke and Soffa currently has a Zacks Rank of #2 (Buy).

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