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Novanta (NOVT) Soars 3.8%: Is Further Upside Left in the Stock?
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Novanta (NOVT - Free Report) shares soared 3.8% in the last trading session to close at $171.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.7% gain over the past four weeks.
Novanta is benefiting from strong momentum across medical applications, growing demand for robotics and automation, minimally invasive and robotic surgery and precision medicine.
This photonic and motion control components maker is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -13.8%. Revenues are expected to be $233.33 million, up 1.7% 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 Novanta, 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 NOVT going forward to see if this recent jump can turn into more strength down the road.
Novanta is a member of the Zacks Electronics - Miscellaneous Components industry. One other stock in the same industry, Fabrinet (FN - Free Report) , finished the last trading session 2.8% higher at $251.52. FN has returned -0.3% over the past month.
For Fabrinet, the consensus EPS estimate for the upcoming report has changed +1.3% over the past month to $2.24. This represents a change of +20.4% from what the company reported a year ago. Fabrinet currently has a Zacks Rank of #3 (Hold).
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Novanta (NOVT) Soars 3.8%: Is Further Upside Left in the Stock?
Novanta (NOVT - Free Report) shares soared 3.8% in the last trading session to close at $171.82. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.7% gain over the past four weeks.
Novanta is benefiting from strong momentum across medical applications, growing demand for robotics and automation, minimally invasive and robotic surgery and precision medicine.
This photonic and motion control components maker is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -13.8%. Revenues are expected to be $233.33 million, up 1.7% 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 Novanta, 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 NOVT 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 >>>>
Novanta is a member of the Zacks Electronics - Miscellaneous Components industry. One other stock in the same industry, Fabrinet (FN - Free Report) , finished the last trading session 2.8% higher at $251.52. FN has returned -0.3% over the past month.
For Fabrinet, the consensus EPS estimate for the upcoming report has changed +1.3% over the past month to $2.24. This represents a change of +20.4% from what the company reported a year ago. Fabrinet currently has a Zacks Rank of #3 (Hold).