Semtech (SMTC Quick QuoteSMTC - Free Report) shares rallied 5.1% in the last trading session to close at $65.11. 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 2.4% loss over the past four weeks.

Semtech extended its rally, driven by its better than expected first-quarter fiscal 2022 results. Strong demand across data center, passive optical networks and wireless base station businesses contributed well. Further, growing momentum across Semtech’s LoRa platform bolstered its performance and is likely to continue contributing to its top line in the near term

Price and Consensus

This chipmaker is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +34.9%. Revenues are expected to be $174.14 million, up 21.2% 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 Semtech, 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 SMTC 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 >>>>