MKS Instruments Surges 5.6%: Is This an Indication of Further Gains?

MKS Instruments MKSI shares ended the last trading session 5.6% higher at $125.90. 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 10.1% loss over the past four weeks.

MKS Instruments is benefiting from strong portfolio and prudent cost control. It is gaining from the growing adoption of its solutions which are used in the majority of the steps needed to manufacture a semiconductor chip.

This maker of analysis and processing equipment for semiconductor companies is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of -22.7%. Revenues are expected to be $863.46 million, down 13.9% 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 MKS Instruments, 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 MKSI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy).

MKS Instruments belongs to the Zacks Electronics - Manufacturing Machinery industry. Another stock from the same industry, Kulicke and Soffa KLIC, closed the last trading session 5% higher at $47.17. Over the past month, KLIC has returned -8.5%.

For Kulicke and Soffa, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.30. This represents a change of -45.5% from what the company reported a year ago. Kulicke and Soffa currently has a Zacks Rank of #3 (Hold).

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