SkyWater Technology (SKYT) Moves 6.2% Higher: Will This Strength Last?

SkyWater Technology, Inc. SKYT shares rallied 6.2% in the last trading session to close at $32.46. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.2% loss over the past four weeks.

SkyWater Technology is benefiting from strong growth in quantum computing-related revenues, successful integration and financial contribution from its newly acquired Fab 25 in Texas, and increased demand for secure, U.S.-based semiconductor manufacturing and advanced packaging solutions.

This company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +36.4%. Revenues are expected to be $148 million, up 150.6% 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 SkyWater TechnologySKYT--, 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 SKYTSKYT-- 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 >>>>

SkyWater Technology is a member of the Zacks Electronics - Semiconductors industry. One other stock in the same industry, Ambiq Micro, Inc. AMBQ, finished the last trading session 10.4% higher at $63.23. AMBQ has returned -35.2% over the past month.

Ambiq Micro, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.26. Compared to the company's year-ago EPS, this represents a change of +39.5%. Ambiq Micro, Inc. currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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