Lantronix, Inc. (LTRX) Stock Jumps 9.6%: Will It Continue to Soar?

Lantronix, Inc.


shares rallied 9.6% in the last trading session to close at $5.69. 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 7% gain over the past four weeks.

The increase in share price can be attributed to optimism surrounding growing clout of latest Connectivity Services, which connects Internet of Things (“IoT”) and remote infrastructure.

Strength in Lantronix’s diversified product portfolio that includes modules, gateways and consoles, remains a key catalyst. The acquisitions of Transition Networks and Net2Edge Maestro, Intrinsyc and FALCOM also bode well for Lantronix.

The company delivered third quarter fiscal 2022 results wherein revenues improved 89% on  a year over year basis. For the fiscal year, the company expects revenues to grow in the range of 75-80% year over year.

This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +33.3%. Revenues are expected to be $33.4 million, up 61.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Lantronix, Inc., 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 LTRX 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 >>>>

Lantronix, Inc. belongs to the Zacks Computer – Networking industry. Another stock from the same industry, Infinera (INFN), closed the last trading session 2.5% higher at $6.15. Over the past month, INFN has returned 19.1%.

For Infinera

, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. This represents a change of -133.3% from what the company reported a year ago. Infinera currently has a Zacks Rank of #4 (Sell).

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