Cohu (COHU) Surges 7.6%: Is This an Indication of Further Gains?

Cohu COHU shares ended the last trading session 7.6% higher at $27.01. 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 0.2% loss over the past four weeks.The optimism surrounding the stock can be attributed to repeat orders for Neon HBM inspection systems  as the demand for AI-driven semiconductor systems rise.This maker of semiconductor test equipment is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +146.7%. Revenues are expected to be $122 million, up 29.6% 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 Cohu, 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 COHU 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 >>>>Cohu is part of the Zacks Electronics - Manufacturing Machinery industry. Axcelis Technologies ACLS, another stock in the same industry, closed the last trading session 5.5% higher at $93.9. ACLS has returned -2.3% in the past month.For Axcelis, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.12. This represents a change of -27.3% from what the company reported a year ago. Axcelis currently has a Zacks Rank of #3 (Hold).#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cohu, Inc. (COHU): Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks