Strength Seen in Silicon Motion (SIMO): Can Its 6.4% Jump Turn into More Strength?

Silicon Motion (SIMO) shares soared 6.4% in the last trading session to close at $89.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.2% gain over the past four weeks.Silicon Motion has expanded its SSD controller program engagements with PC OEMs and eMMC/UFS controllers for smartphones, automotive applications and IoT/smart devices. The company is supplementing this momentum with innovative launches of next-generation enterprise-class SSD controllers. SIMO is also taking several measures to enhance its gross margins, including reducing manufacturing costs, minimizing compensation-related expenses, discontinuing unprofitable product lines and streamlining research and development expenditures.This chip company is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of -4.4%. Revenues are expected to be $227.87 million, up 7.3% 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 Silicon Motion, 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 SIMO 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 >>>>Silicon Motion is part of the Zacks Computer - Integrated Systems industry. Micron (MU), another stock in the same industry, closed the last trading session 7.6% higher at $150.57. MU has returned 12.7% in the past month.For Micron, the consensus EPS estimate for the upcoming report has changed +6.3% over the past month to $2.85. This represents a change of +141.5% from what the company reported a year ago. Micron currently has a Zacks Rank of #1 (Strong Buy).5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report Micron Technology, Inc. (MU): 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