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Strength Seen in Luna Innovations Incorporated (LUNA): Can Its 5.6% Jump Turn into More Strength?

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Luna Innovations Incorporated (LUNA - Free Report) shares rallied 5.6% in the trading session on Tuesday to close at $10.56. 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 17.8% gain over the past four weeks.

The stock is benefiting from the company’s strong revenue growth from communications test and Terahertz product lines.

This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +400%. Revenues are expected to be $29.74 million, up 13.7% 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 Luna Innovations Incorporated, 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 LUNA 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 >>>>

Luna Innovations Incorporated is a member of the Zacks Technology Services industry. One other stock in the same industry, Inspired Entertainment (INSE - Free Report) , finished the last trading session 0.2% lower at $14.46. INSE has returned 2.6% over the past month.

For Inspired Entertainment, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. This represents a change of +11.5% from what the company reported a year ago. Inspired Entertainment currently has a Zacks Rank of #1 (Strong Buy).


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