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Strength Seen in Mobileye (MBLY): Can Its 11.6% Jump Turn into More Strength?

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Mobileye Global (MBLY - Free Report) shares rallied 11.6% in the last trading session to close at $16.42. 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 5.7% loss over the past four weeks.

Mobileye shares rallied amid broader macroeconomic and geopolitical shifts. The stock jumped after Iran’s missile strikes on U.S. bases hinted at possible de-escalation in Middle East tensions. The firm’s headquarters are located in Israel, which makes it highly exposed to regional instability. Following President Donald Trump’s call to end the conflict between Israel and Iran, indications emerged that military tensions may be easing. Adding to the positive mood, a Federal Reserve official’s comments increased hopes that interest rates might be cut next month.

This maker of driver-assistance systems and autonomous driving technologies is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $462.79 million, up 5.4% 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 Mobileye, 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 MBLY 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 >>>>

Mobileye belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Modine (MOD - Free Report) , closed the last trading session 0.5% higher at $97.17. Over the past month, MOD has returned 7.7%.

Modine's consensus EPS estimate for the upcoming report has changed -12.3% over the past month to $0.98. Compared to the company's year-ago EPS, this represents a change of -5.8%. Modine currently boasts a Zacks Rank of #3 (Hold).

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