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Stratasys (SSYS) Moves 7.8% Higher: Will This Strength Last?

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Stratasys (SSYS - Free Report) shares rallied 7.8% in the last trading session to close at $13.21. 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 14.6% loss over the past four weeks.

The upswing came after Stratasys announced that it has terminated the previously announced merger deal with Desktop Metal after shareholders rejected the deal at the Extraordinary General Meeting held on Sep 28. Additionally, the company is now exploring alternatives that include a strategic transaction, merger, business combination or sale, which have the potential to enhance shareholders’ wealth.

Stratasys is benefiting from an increase in demand for 3D printed equipment across several industries. Its cost-control initiatives are expected to reflect positively on expenses in the forthcoming quarters. Firm focus on introducing new and innovative product is helping it in winning new deals. Strategic partnerships have helped Stratasys in developing advanced 3D printing technologies for multiple industries, thereby expanding its geographic reach and driving market penetration.

This maker of 3D printers is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -20%. Revenues are expected to be $162.58 million, up 0.2% 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 Stratasys, 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 SSYS 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 >>>>

Stratasys is part of the Zacks Computer - Peripheral Equipment industry. TransAct Technologies Incorporated (TACT - Free Report) , another stock in the same industry, closed the last trading session 0.9% lower at $6.39. TACT has returned -9.7% in the past month.

TransAct Technologies Incorporated's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. Compared to the company's year-ago EPS, this represents a change of -120%. TransAct Technologies Incorporated currently boasts a Zacks Rank of #2 (Buy).


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