Strength Seen in QuickLogic (QUIK): Can Its 6.7% Jump Turn into More Strength?

QuickLogic QUIK shares ended the last trading session 6.7% higher at $5.42. 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 0.6% gain over the past four weeks.

The upswing in share price can be attributed to the partnership between QuickLogic and Intrinsic ID to provide eFPGA Security Solutions. This partnership is expected to result in a seamless integration of the full security solutions provided by both companies. It will enable QuickLogic's eFPGA customers to add security functionality without any further integration effort. This will help retain the existing customers and attract the new ones, which will drive the top line.

This maker of chips for mobile and portable electronics manufacturers is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +41.7%. Revenues are expected to be $4 million, up 78.6% 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 QuickLogic, 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 QUIK 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 >>>>

QuickLogic is part of the Zacks Electronics - Semiconductors industry. KULR Technology Group, Inc. KULR, another stock in the same industry, closed the last trading session 3.9% lower at $1.22. KULR has returned -41.2% in the past month.

For KULR Technology Group, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. This represents a change of -100% from what the company reported a year ago. KULR Technology Group, Inc. currently has a Zacks Rank of #4 (Sell).

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