Kornit Digital (KRNT) Moves 5.0% Higher: Will This Strength Last?
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Kornit Digital Ltd. KRNT shares ended the last trading session 5% higher at $26.45. 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 34.6% gain over the past four weeks.
Kornit Digital's rally is primarily driven by optimism regarding Monster Digital's plans to expand its digital production. Monster Digital will be adding 10 Kornit Apollo systems in 2025, highlighting a major shift from traditional screen printing to digital textile production.
This digital textile printer is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +214.3%. Revenues are expected to be $49.2 million, down 16.9% from the year-ago quarter.
While earnings and revenue growth expectations are important 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 Kornit Digital, 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 KRNT 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 >>>>
Kornit Digital is part of the Zacks Commercial Printing industry. Quad/Graphics (QUAD), another stock in the same industry, closed the last trading session 0.9% higher at $4.63. QUAD has returned -1.5% in the past month.
For Quad/Graphics , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. This represents a change of +81.8% from what the company reported a year ago. Quad/Graphics currently has a Zacks Rank of #3 (Hold).
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