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PDF Solutions (PDFS) Soars 15.2%: Is Further Upside Left in the Stock?

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PDF Solutions (PDFS - Free Report) shares soared 15.2% in the last trading session to close at $25.96. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.3% gain over the past four weeks.

PDF Solutions is benefiting from strong revenue growth driven by innovative solutions like secureWISE, Sapience, Exensio, and increased adoption of AI and analytics in semiconductor manufacturing.

This provider of software and services for semiconductor makers is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $56.6 million, up 22% 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 PDF Solutions, 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 PDFS 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 >>>>

PDF Solutions belongs to the Zacks Computer - Services industry. Another stock from the same industry, CGI Group (GIB - Free Report) , closed the last trading session 2.8% lower at $90.85. Over the past month, GIB has returned -2.3%.

CGI's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.53. Compared to the company's year-ago EPS, this represents a change of +8.5%. CGI currently boasts a Zacks Rank of #3 (Hold).


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