Cohu (COHU) Outpaces Stock Market Gains: What You Should Know
Cohu (COHU) closed the most recent trading day at $36.18, moving +0.64% from the previous trading session. This change outpaced the S&P 500's 0.02% gain on the day.
Coming into today, shares of the maker of semiconductor test equipment had lost 1.67% in the past month. In that same time, the Computer and Technology sector gained 2.08%, while the S&P 500 gained 0.04%.
Wall Street will be looking for positivity from COHU as it approaches its next earnings report date. On that day, COHU is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 358.82%. Meanwhile, our latest consensus estimate is calling for revenue of $242 million, up 67.96% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.15 per share and revenue of $931.95 million, which would represent changes of +164.71% and +46.53%, respectively, from the prior year.
Any recent changes to analyst estimates for COHU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. COHU currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that COHU has a Forward P/E ratio of 11.42 right now. For comparison, its industry has an average Forward P/E of 18.67, which means COHU is trading at a discount to the group.
The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow COHU in the coming trading sessions, be sure to utilize Zacks.com.
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