Luminar Technologies stock surges 27.3%, but can it sustain further gains?

Table of Contents

Introduction

In a recent trading session, Luminar Technologies, Inc. (LAZR) shares saw a significant jump of 27.3% to $8.48. This increase was driven by an impressive volume with a higher-than-average number of shares changing hands in the session. When compared to its 14.7% loss over the past four weeks, this surge is particularly noteworthy.

Growing Optimism in the Semiconductor Sector

The recent jump in Luminar’s share price can be attributed to growing optimism surrounding the semiconductor sector. Investors are speculating that NVIDIA might unveil updates about its collaboration with Luminar during the CES conference. This collaboration has been a subject of interest for investors and analysts alike, and any developments or announcements related to it could have a significant impact on Luminar’s share price.

Upcoming Earnings Report

Luminar Technologies is expected to post quarterly loss of $2.20 per share in its upcoming report, representing a year-over-year change of +26.7%. Revenues are expected to be $16.76 million, down 24.2% from the year-ago quarter. While earnings and revenue growth expectations are essential in evaluating a stock’s potential strength, empirical research has shown a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Earnings Estimate Revisions

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 keep an eye on LAZR going forward to see if this recent jump can turn into more strength down the road.

Zacks Rank

The stock currently carries a Zacks Rank #3 (Hold). To see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks, click here >>>.

Industry Peers – Visteon Corporation (VC)

Visteon Corporation (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.

Consensus EPS Estimate: Visteon’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.79.
Year-Over-Year Change: Compared to the company’s year-ago EPS, this represents a change of -86.2%.
Zacks Rank: Visteon currently boasts a Zacks Rank of #4 (Sell).

Conclusion

Luminar Technologies’ recent surge in share price is an intriguing development that warrants further analysis. As investors continue to monitor the semiconductor sector and any updates related to NVIDIA’s collaboration with Luminar, it will be essential to keep a close eye on LAZR’s performance.

Get Your Free Report: 7 Best Stocks for the Next 30 Days

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days Click to get this free report.