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Strength Seen in Impinj (PI): Can Its 3.4% Jump Turn into More Strength?

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Impinj (PI - Free Report) shares rallied 3.4% in the last trading session to close at $132.34. 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 14.4% gain over the past four weeks.

Impinj extended its rally, driven by upward revision in its fourth-quarter 2022 revenue guidance. It currently expects revenues to exceed $76 million, which was previously expected between $71.5 and $73.5 million. Further, Impinj’s growing chip capabilities in the areas of retail self-checkout, loss prevention and anti-counterfeiting, remain noteworthy.

This provider of radio frequency identification products is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +143.8%. Revenues are expected to be $74.35 million, up 41.4% 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 Impinj, the consensus EPS estimate for the quarter has been revised 150% 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 PI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Impinj is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Rambus (RMBS - Free Report) , finished the last trading session 2% higher at $42.84. RMBS has returned 16.7% over the past month.

Rambus' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.47. Compared to the company's year-ago EPS, this represents a change of +20.5%. Rambus currently boasts a Zacks Rank of #3 (Hold).


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