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Sensata (ST) Soars 18.0%: Is Further Upside Left in the Stock?

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Sensata (ST - Free Report) shares ended the last trading session 18% higher at $20.88. 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 35.9% loss over the past four weeks.

The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to subsequent increases for most stocks including Seagate and skyrocketing indices.

The rise in ST’s share price can also be linked to positive sentiment stemming from its recent product launch. Sensata unveiled its latest innovation—the STPS500 series PyroFuse—a pyrotechnic circuit breaker engineered for enhanced safety and performance in high-voltage applications up to 1000V. With an ultra-fast disconnect time of less than one millisecond, this compact and lightweight device provides critical protection against electrical faults, such as short circuits or accident-related shocks, making it ideal for automotive, charging infrastructure, aerospace and industrial systems.

Apart from that, the company-specific factors are also driving the stock price performance. Sensata’s strong portfolio in high-voltage protection, battery management, and automotive sensing solutions is fueling investor optimism. Its ability to capitalize on growing demand, especially for electric vehicle (EV) technologies like electromechanical braking, is boosting market confidence and contributing to the recent rise in its stock.

Sensata’s cost-effective operations and rising demand for its solutions bode well. The company anticipates growth, particularly on its A2L leak detection sensor. Also, continued strength in the Aerospace vertical is a tailwind. The company's restructuring initiatives are leading to a reduction in operating expenses.

This maker of sensing, electrical protection, control and power management products is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -19.1%. Revenues are expected to be $876.96 million, down 12.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Sensata, 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 ST 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 >>>>

Sensata is part of the Zacks Instruments - Control industry. Transcat, Inc. (TRNS - Free Report) , another stock in the same industry, closed the last trading session 3.2% higher at $76.54. TRNS has returned 4.4% in the past month.

For Transcat, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.66. This represents a change of -14.3% from what the company reported a year ago. Transcat currently has a Zacks Rank of #3 (Hold).


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