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Universal Electronics (UEIC) Soars 8.5%: Is Further Upside Left in the Stock?

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Universal Electronics (UEIC - Free Report) shares ended the last trading session 8.5% higher at $9.29. 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 6.5% loss over the past four weeks.

Universal Electronics is benefiting from expanding customer relationships and increasing design wins in the connected home and home entertainment markets.

This remote control maker is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +87.5%. Revenues are expected to be $102.57 million, down 4.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Universal Electronics, the consensus EPS estimate for the quarter has been revised 123.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on UEIC 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 >>>>

Universal Electronics is a member of the Zacks Electronics - Miscellaneous Products industry. One other stock in the same industry, Hayward Holdings, Inc. (HAYW - Free Report) , finished the last trading session 0.9% lower at $13.56. HAYW has returned -3.4% over the past month.

For Hayward Holdings, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.10. This represents a change of +11.1% from what the company reported a year ago. Hayward Holdings currently has a Zacks Rank of #2 (Buy).


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