Back to top

Image: Bigstock

Ondas (ONDS) Surges 26.0%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Ondas Holdings Inc. (ONDS - Free Report) shares rallied 26% in the last trading session to close at $9.21. 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 45.3% gain over the past four weeks.

The upswing came after the company announced that it had placed an order for 500 Wasp drones from Rift Dynamics through its American Robotics subsidiary.

This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +60%. Revenues are expected to be $7.8 million, up 426.7% 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 Ondas, 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 ONDS 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 >>>>

Ondas is a member of the Zacks Communication - Network Software industry. One other stock in the same industry, A10 Networks (ATEN - Free Report) , finished the last trading session 1.1% higher at $18.49. ATEN has returned 3.9% over the past month.

A10 Networks' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.21. Compared to the company's year-ago EPS, this represents no change. A10 Networks currently boasts a Zacks Rank of #4 (Sell).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


A10 Networks, Inc. (ATEN) - free report >>

Ondas Holdings Inc. (ONDS) - free report >>

Published in