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Silicon Labs (SLAB) Moves 3.4% Higher: Will This Strength Last?

Silicon Laboratories (SLAB) shares rallied 3.4% in the last trading session to close at $135.70. 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 5.8% loss over the past four weeks.

The upswing in share price can be attributed to growing demand for Silicon Laboratories solutions. The company’s expanding portfolio with the launch of e BG24 and MG24 2.4 GHz wireless SoCs and a new software toolkit that bring AI/ML acceleration and wireless high performance to battery-powered edge devices is noteworthy.

This chipmaker is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of -13.3%. Revenues are expected to be $250.19 million, up 47.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Silicon Labs, 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 SLAB 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 Labs is a member of the Zacks Semiconductor - Analog and Mixed industry. One other stock in the same industry, Magnachip (MX), finished the last trading session 3.2% higher at $16.80. MX has returned -19.1% over the past month.

Magnachip's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.21. Compared to the company's year-ago EPS, this represents a change of +40%. Magnachip currently boasts a Zacks Rank of #3 (Hold).

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