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American Superconductor (AMSC) Moves 9.4% Higher: Will This Strength Last?

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American Superconductor (AMSC - Free Report) shares rallied 9.4% in the last trading session to close at $28.06. 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 20.1% gain over the past four weeks.

American Superconductor extended its rally, driven by strong momentum across its Grid business. Solid adoption of the company’s new energy power system is a tailwind. The business is also benefiting from growing traction of its Wind business owing to strengthening shipment electrical control systems.

This wind turbine component maker is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $39.55 million, up 30.7% 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 American Superconductor, 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 AMSC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

American Superconductor belongs to the Zacks Electronics - Miscellaneous Components industry. Another stock from the same industry, Littelfuse (LFUS - Free Report) , closed the last trading session 1.4% higher at $252.80. Over the past month, LFUS has returned 0.3%.

Littelfuse's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.75. Compared to the company's year-ago EPS, this represents a change of -43.9%. Littelfuse currently boasts a Zacks Rank of #3 (Hold).

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