Strength Seen in Stratasys (SSYS): Can Its 13.8% Jump Turn into More Strength?

Stratasys SSYS shares ended the last trading session 13.8% higher at $16.06. 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 9% gain over the past four weeks.

The upswing came after the company confirmed that Nano Dimensions, an Israel-based 3D printed electronics systems and additive manufacturer, offered a revised unsolicited, non-binding indicative proposal to acquire Stratasys for $19.55 per share in cash. Earlier in March, SSYS had unanimously rejected an unsolicited non-binding indicative proposal received from Nano to acquire Stratasys for $18.00 per share in cash, concluding that the proposal undervalued the company.

This maker of 3D printers is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -500%. Revenues are expected to be $142.17 million, down 13% 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 Stratasys, the consensus EPS estimate for the quarter has been revised 66.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on SSYS 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 >>>>

Stratasys belongs to the Zacks Computer – Peripheral Equipment industry. Another stock from the same industry, Identiv, Inc. INVE, closed the last trading session 3.4% higher at $6.04. Over the past month, INVE has returned -16.8%.

For Identiv, Inc., the consensus EPS estimate for the upcoming report has changed -333.3% over the past month to -$0.07. This represents a change of -16.7% from what the company reported a year ago. Identiv, Inc. currently has a Zacks Rank of #4 (Sell).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.