Immersion (IMMR) could prove to be a smart investment decision in light of the recent improvement in the company’s earnings forecasts. The optimistic outlook for the performance of this technology company is leading to an increase in estimates, which may positively affect the stock price. Recent research has shown a strong correlation between trends in earnings estimate revisions and short-term price movements. This correlation is the foundation of our stock rating tool – the Zacks Rank.
The Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), provides a transparent and audited outperformance record, with stocks ranked #1 having an average annual return of +25% since 2008.
Immersion is enjoying strong support from its covering analysts in terms of upward revisions in earnings estimates, which has led to a significant increase in consensus estimates for the next quarter and full year.
The following chart demonstrates the upward trend in the forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
Immersion is expected to earn $0.16 per share for the current quarter, signifying a +633.33% YoY change.
The Zacks Consensus Estimate for Immersion has gone up by 60% over the past 30 days, owing to one estimate moving higher with no negative revisions.
Current-Year Estimate Revisions
For the full year, the company is anticipated to earn $0.86 per share, which indicates a -2.27% variation from the previous year’s number.
Immersion’s estimate revisions for the current year are equally impressive. Over the past month, one estimate has moved higher with no negative revisions, leading to a 19.44% increase in the consensus estimate.
Favorable Zacks Rank
Thanks to Immersion’s promising estimate revisions, it presently holds a Zacks Rank #2 (Buy). The Zacks Rank is a reliable rating tool that enables investors to efficiently leverage the power of earnings estimate revisions and make informed investment decisions. To view the full list of today’s Zacks #1 Rank (Strong Buy) stocks, click on this link here.
Our research shows that stocks ranked Zacks Rank #1 (Strong Buy) and 2 (Buy) outperform the S&P 500 index significantly.
While Immersion’s strong estimate revisions have attracted significant investments and boosted the stock price by 5.3% over the past four weeks, the potential for further growth in the stock remains. Therefore, it may be a good idea to add Immersion’s stock to your portfolio at this point.
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