Coherent Tumbles 4.47% on $340M Volume Ranked 364th Despite Zacks Strong Buy and 13.1% Sector Rally

Coherent (COHR) closed August 1, 2025, with a 4.47% decline, trading at $102.79 on $340 million in volume, ranking 364th in market liquidity. Analysts highlighted a Zacks Rank #1 (Strong Buy) for the stock, driven by an 8.3% increase in full-year EPS estimates over three months. The firm’s Technology Services industry, part of the broader Business Services sector, has gained 13.1% year-to-date, outperforming the sector’s average 0.6% gain.

Zacks Investment Research noted Coherent’s earnings outlook remains robust, with upward revisions to consensus estimates. The company’s Zacks Rank reflects improved analyst sentiment, contrasting with peers like Zeta Global, which underperformed the sector. Coherent’s valuation, trading at a 12-month P/E of 23.39, is in line with industry averages, suggesting alignment with market expectations for growth.

A backtested strategy of purchasing the top 500 stocks by daily trading volume and holding for one day yielded a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18%. This underscores liquidity concentration as a key driver in short-term price movements, particularly in high-volume stocks like Coherent.