Actionable news
All posts from Actionable news
Actionable news in AAOI: Applied Optoelectronics, Inc.,

Why AAOI Is Surging Today, And Will Again Soon

Applied Optoelectronics (AAOI) is back to being a Zacks Rank #1 (Strong Buy). It was a Zacks Rank #2 (Buy) yesterday when I shot this video ( profiling it as an aggressive growth stock that should be on your radar. The reason for including it yesterday was simple, the company raised guidance yet again. Let’s take a look at the recent history of guidance increases and what the analysts are saying today.

Increase In Zacks Rank

The Zacks Rank is an algorithm of all the earnings estimates that are produced by the sell side analysts. Whether it's Piper Jaffray or Goldman Sachs or DA Davidson, all the estimates are compiled together to form a consensus. The Rank then looks at the earnings estimate revisions, and those stocks with the best revisions receive the coveted Zacks Rank #1 (Strong Buy).

When a company raises guidance, analysts are sure to follow suit and that is just what happened with AAOI today. Yesterday it was a Zacks Rank #2 (Buy) but the new revisions higher helped push the stock up to a Zacks Rank #1 (Strong...