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Ichor Holdings, Ltd. (ICHR) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Ichor Holdings, Ltd. (ICHR) closed at $35.30, marking a +1.47% move from the previous day. This change outpaced the S&P 500's 0.31% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.26%.

Coming into today, shares of the company had gained 4.57% in the past month. In that same time, the Computer and Technology sector gained 4.64%, while the S&P 500 gained 1.18%.

Investors will be hoping for strength from ICHR as it approaches its next earnings release, which is expected to be February 5, 2020. On that day, ICHR is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 53.13%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $188.89 million, up 33.58% from the year-ago period.

Any recent changes to analyst estimates for ICHR 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 13.73% higher. ICHR currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, ICHR is holding a Forward P/E ratio of 13.24. For comparison, its industry has an average Forward P/E of 22.51, which means ICHR is trading at a discount to the group.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ICHR in the coming trading sessions, be sure to utilize Zacks.com.

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