Mobileye (MBLY) stock surges 11.4% on high volume

Mobileye Global (MBLY), a the self-driving car technology company, shares rallied 11.4% in the last trading session to close at $27.81. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 8.3% loss over the past four weeks.

Shares of Mobileye popped following optimistic remarks from the company’s executives at Morgan Stanley’s Technology, Media, and Telecom conference. MBLY reiterated that the sales volumes of EyeQ is estimated at 3.4 million units in the first quarter of 2024. Sales are set to double in the second quarter. This bullish outlook has investors anticipating robust growth for the tech stock, leading to a surge in its share price.

This maker of driver-assistance systems and autonomous driving technologies is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of -150%. Revenues are expected to be $226.35 million, down 50.6% 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 Mobileye, 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 MBLY going forward to see if this recent jump can turn into more strength down the road.

Mobileye is a member of the Zacks Automotive – Original Equipment industry. One other stock in the same industry, Gentherm (THRM), finished the last trading session 0.2% lower at $56.01. THRM has returned 13.5% over the past month.

Gentherm’s consensus EPS estimate for the upcoming report has changed -20% over the past month to $0.44. Compared to the company’s year-ago EPS, this represents a change of -10.2%. Gentherm currently boasts a Zacks Rank of #2 (Buy).

News related to Mobileye –

  1. HiRain unveils Mobileye EyeQ™6 lite based ADAS system in China
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