Visteon (VC) Soars 6.8%: Is further upside left in the stock?

Visteon (VC - Free Report) shares rallied 6.8% in the last trading session to close at $104.94. 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 0.8% gain over the past four weeks.

Shares of Visteon surged after the company highlighted how its software-defined tuner technology, strengthened by the integration of Inntot, positions it to solve a growing global challenge in supporting multiple digital radio standards through a single platform. The technology has the potential to lower hardware costs, ease software upgrades and strengthen long-term competitiveness as vehicles shift toward software-defined architectures. The company signaled future revenue opportunities by reinforcing Visteon’s role in enabling globally scalable, next-generation digital cockpit solutions.

This auto parts supplier is expected to post quarterly earnings of $2.08 per share in its upcoming report, which represents a year-over-year change of -53.2%. Revenues are expected to be $930.62 million, down 0.9% 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 Visteon, the consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on VC going forward to see if this recent jump can turn into more strength down the road.

isteon is part of the Zacks Automotive - Original Equipment industry. Innoviz Technologies Ltd. (INVZ - Free Report) , another stock in the same industry, closed the last trading session 0.1% lower at $0.95. INVZ has returned -14.8% in the past month.

Innoviz Technologies' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. Compared to the company's year-ago EPS, this represents a change of +22.2%. Innoviz Technologies currently boasts a Zacks Rank of #3 (Hold).