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Immersion (IMMR) Moves 16.5% Higher: Will This Strength Last?

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Immersion (IMMR - Free Report) shares soared 16.5% in the last trading session to close at $8.21. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.7% gain over the past four weeks.

The optimism surrounding the stock can be attributable to growing demand for its digital touch feedback solutions across mobile, automotive, gaming, and other consumer experiences. Immersion’s patented technologies, branded TouchSense, enable devices such as mouse, joysticks, knobs and medical simulation products to deliver tactile sensations that correspond to on-screen events.

The company is seeing some very strong growth because of its innovative technology and new customer wins. The company is focusing on four application areas — computing and entertainment, medical simulation, professional and industrial, and three-dimensional capture and interaction.

This touch-based technology company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -57.8%. Revenues are expected to be $9.25 million, up 1% 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 Immersion, 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 IMMR 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 >>>>

Immersion is part of the Zacks Computer - Peripheral Equipment industry. Stratasys (SSYS - Free Report) , another stock in the same industry, closed the last trading session 2.2% lower at $12.68. SSYS has returned -4.8% in the past month.

For Stratasys, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. This represents a change of -14.3% from what the company reported a year ago. Stratasys currently has a Zacks Rank of #3 (Hold).

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