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Strength Seen in Valens Semiconductor, Ltd. (VLN): Can Its 8.0% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

Valens Semiconductor, Ltd. (VLN) shares ended the last trading session 8% higher at $5.40. 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 1.2% loss over the past four weeks.

The recent surge in Valens Semiconductor's share price reflects the bullish sentiment of the investors in the stock. The cheap price of the stock is likely to have boosted investor optimism. Notably, the stock improved 22.7% in the past six days.

This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -37.5%. Revenues are expected to be $23.15 million, up 11.6% 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.

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For Valens Semiconductor, Ltd., 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 VLN 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 >>>>

Valens Semiconductor, Ltd. belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, AXT (AXTI), closed the last trading session 1.2% higher at $4.90. Over the past month, AXTI has returned -2.6%.

For AXT , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.03. This represents a change of -66.7% from what the company reported a year ago. AXT currently has a Zacks Rank of #3 (Hold).

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Valens Semiconductor, Ltd. (VLN) : Free Stock Analysis Report

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Zacks Investment Research