Market Sentiment and Speculation Fuel the Surge
Luminar Technologies, Inc. (LAZR) shares closed the last trading session with a notable gain of 27.3% at $8.48 per share. The surge was observed on an impressive volume, indicating that a higher-than-average number of shares changed hands in the session. This contrasts with the stock’s 14.7% loss over the past four weeks.
Market Sentiment and Semiconductor Sector Optimism
The recent jump in LAZR’s share price is likely fueled by growing optimism around the semiconductor sector. Investors are pushing the share price higher on speculation that NVIDIA might unveil updates about its collaboration with Luminar during the CES conference.
Earnings and Revenue Expectations
Luminar Technologies is expected to post a quarterly loss of $2.20 per share in its upcoming report, which represents a year-over-year change of +26.7%. Revenues are expected to be $16.76 million, down 24.2% from the year-ago quarter.
The Importance of Earnings Estimate Revisions
While earnings and revenue growth expectations are essential 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 Luminar Technologies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. A stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. Therefore, it is essential to monitor LAZR going forward to see if this recent jump can turn into more strength down the road.
Industry Performance and Comparison
Luminar Technologies is part of the Zacks Automotive – Original Equipment industry. Visteon (VC), another stock in the same industry, closed the last trading session 0.7% higher at $87.82. VC has returned -6.4% in the past month.
Visteon’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.79. Compared to the company’s year-ago EPS, this represents a change of -86.2%. Visteon currently boasts a Zacks Rank of #4 (Sell).
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