Strength Seen in TE Connectivity (TEL): Can Its 3.4% Jump Turn into More Strength?

TE Connectivity TEL shares ended the last trading session 3.4% higher at $244.13. 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 4.4% loss over the past four weeks.TE Connectivity is benefiting from strong Industrial Solutions segment growth, driven by strong demand for artificial intelligence (AI) and cloud applications.This electronics maker is expected to post quarterly earnings of $2.54 per share in its upcoming report, which represents a year-over-year change of +30.3%. Revenues are expected to be $4.51 billion, up 17.5% 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 TE Connectivity, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TEL going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>TE Connectivity is part of the Zacks Electronics - Miscellaneous Components industry. CTS CTS, another stock in the same industry, closed the last trading session 3.8% higher at $44.74. CTS has returned 4.2% in the past month.CTS' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.6. Compared to the company's year-ago EPS, this represents a change of +13.2%. CTS currently boasts a Zacks Rank of #4 (Sell).Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely 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 TE Connectivity Ltd. (TEL): Free Stock Analysis Report CTS Corporation (CTS): 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