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Camtek (CAMT) Soars 7.4%: Is Further Upside Left in the Stock?

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Camtek (CAMT - Free Report) shares rallied 7.4% in the last trading session to close at $61.25. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.9% gain over the past four weeks.

Camtek extended its rally, driven by strong order momentum. Winning multiple system orders from several customers are contributing well to the company’s top line. Robust system performance across 2D applications, and strength in 3D metrology remain noteworthy. Moreover, the company’s latest agreement to acquire FormFactor's FRT Metrology business remains a positive. The acquisition is likely to strengthen Camtek’s comprehensive solutions for inspection and metrology.

This maker of automatic optical inspection and process enhancement systems is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $78.25 million, down 4.6% 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 Camtek, 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 CAMT 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 >>>>

Camtek is part of the Zacks Electronics - Measuring Instruments industry. inTest Corporation (INTT - Free Report) , another stock in the same industry, closed the last trading session 0.4% lower at $14.87. INTT has returned -9.3% in the past month.

For inTest Corporation, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.26. This represents a change of -7.1% from what the company reported a year ago. inTest Corporation currently has a Zacks Rank of #3 (Hold).

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