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Strength Seen in Hoya Corp. (HOCPY): Can Its 5.6% Jump Turn into More Strength?

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Hoya Corp. (HOCPY - Free Report) shares ended the last trading session 5.6% higher at $98.15. 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 9.1% loss over the past four weeks.

The recent surge in Hoya Corp’s share price can be attributed to the news that it has established a joint venture company with Beijing BOE Vision Electronic Technology co. Ltd. a member of the BOE Group, in China. The joint venture will involve Hoya Corp’s flat panel display business unit.

This company is expected to post quarterly earnings of $0.93 per share in its upcoming report, which represents a year-over-year change of -12.3%. Revenues are expected to be $1.39 billion, down 6.2% 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 Hoya Corp., the consensus EPS estimate for the quarter has been revised 6.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HOCPY 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 >>>>

Hoya Corp. belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, Flex (FLEX - Free Report) , closed the last trading session 3.4% higher at $17.17. Over the past month, FLEX has returned -7.9%.

Flex's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.51. Compared to the company's year-ago EPS, this represents a change of +6.3%. Flex currently boasts a Zacks Rank of #3 (Hold).

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