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SiTime (SITM) Moves 5.1% Higher: Will This Strength Last?

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SiTime (SITM - Free Report) shares ended the last trading session 5.1% higher at $163.19. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 24.7% gain over the past four weeks.

The increase in share price can be attributed to robust demand for the company’s diversified product portfolio. The company is also expanding its portfolio through acquisitions. Alongside its innovative products, SiTime is benefiting from strength in its single-source business and increased design wins.

This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +118.2%. Revenues are expected to be $41.01 million, up 47.9% 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 SiTime, 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 SITM 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 >>>>

SiTime is part of the Zacks Electronics - Miscellaneous Products industry. Trimble Navigation (TRMB - Free Report) , another stock in the same industry, closed the last trading session 2.3% higher at $58.61. TRMB has returned 2.8% in the past month.

Trimble's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.57. Compared to the company's year-ago EPS, this represents a change of -10.9%. Trimble currently boasts a Zacks Rank of #2 (Buy).


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