Analog Devices ADI shares soared 4.1% in the last trading session to close at $171.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 27.1% loss over the past four weeks.

The upswing was likely due to the perception that semiconductor companies with strong fundamentals and pricing power will perform well in the current market climate, potentially benefiting from exemptions from tariffs on semiconductors.

This semiconductor maker is expected to post quarterly earnings of $1.69 per share in its upcoming report, which represents a year-over-year change of +20.7%. Revenues are expected to be $2.5 billion, up 15.9% 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 Analog Devices, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ADI 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 >>>>

Analog Devices is a member of the Zacks Semiconductor - Analog and Mixed industry. One other stock in the same industry, Silicon Laboratories SLAB, finished the last trading session 1% lower at $91.19. SLAB has returned -33.6% over the past month.

For Silicon Labs , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.09. This represents a change of +90.2% from what the company reported a year ago. Silicon Labs currently has a Zacks Rank of #3 (Hold).

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Analog Devices, Inc. (ADI):Free Stock Analysis Report

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

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