Silicon Laboratories Inc. (SLAB) just hit a fresh high moving above the psychologically-important $50 per share level for the first time. This mark is very close to the 52 week high for Silicon Laboratories which has added more than 25% in the last 12 weeks, suggesting that decent momentum is present in SLAB.
But after this fresh 52 week high and the positive price momentum, investors have to be wondering if Silicon Laboratories can continue to push higher or if a pullback is overdue. One place to find the answer could be in the recent earnings estimate revision activity that is taking place in SLAB.
Recent Estimates
Despite the move higher in Silicon Laboratories’ stock price, we have seen pretty negative earnings estimate revisions as of late, which means that analysts are becoming more bearish about SLAB’s prospects. In fact, 2 estimates have gone lower in the past two months compared to no upward revision, while the consensus estimate has moved in the wrong direction over the same time frame too.
We actually give SLAB a Zacks Rank #4 (Sell) based on this information and think that the move higher for this company might be a bit overdone. So while trading has certainly been good lately, estimates suggest that this run could soon enter a consolidation period and that a pullback may be ahead for this ‘sell’ ranked stock in the near term.
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