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Stratasys (SSYS) Stock Jumps 7.8%: Will It Continue to Soar?

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Stratasys (SSYS - Free Report) shares ended the last trading session 7.8% higher at $17.46. 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 16.7% loss over the past four weeks.

The optimism surrounding the stock can be attributable to growing adoptability of 3D printing materials across multiple industries. Stratasys is benefiting from an increase in demand for 3D printed medical equipment. Moreover, its cost-control initiatives are expected to reflect positively on expenses in the forthcoming quarters. Firm focus on launching products and entering into partnerships is a key driver.

This maker of 3D printers is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $166.15 million, up 13% 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 Stratasys, 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 SSYS 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 >>>>

Stratasys is part of the Zacks Computer - Peripheral Equipment industry. Mercury Systems (MRCY - Free Report) , another stock in the same industry, closed the last trading session 0.8% higher at $63.47. MRCY has returned 1.1% in the past month.

For Mercury Systems, the consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $1.01. This represents a change of +38.4% from what the company reported a year ago. Mercury Systems currently has a Zacks Rank of #3 (Hold).

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