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Advanced Energy (AEIS) Moves 3.6% Higher: Will This Strength Last?

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Advanced Energy Industries (AEIS - Free Report) shares soared 3.6% in the last trading session to close at $128.97. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5% gain over the past four weeks.

Advanced Energy is benefiting from higher demand in the semiconductor and data center computing markets. 

This maker of power-conversion products is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of +50.6%. Revenues are expected to be $419.09 million, up 14.8% 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 Advanced Energy, the consensus EPS estimate for the quarter has been revised 7.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AEIS 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 >>>>

Advanced Energy is a member of the Zacks Semiconductor Equipment - Wafer Fabrication industry. One other stock in the same industry, ASML (ASML - Free Report) , finished the last trading session 0.2% higher at $761.64. ASML has returned 1.5% over the past month.

ASML's consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $5.87. Compared to the company's year-ago EPS, this represents a change of +35.9%. ASML currently boasts a Zacks Rank of #2 (Buy).


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