Why Axcelis Technologies (ACLS) Dipped More Than Broader Market Today
In the latest market close, Axcelis Technologies (ACLS) reached $108.04, with a -1.38% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.42%.
Shares of the semiconductor services company witnessed a loss of 1.03% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.64% and the S&P 500's gain of 2.67%.
Investors will be eagerly watching for the performance of Axcelis Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.26, indicating a 11.89% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $242.55 million, indicating a 4.52% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.88 per share and a revenue of $1.12 billion, indicating changes of -7.4% and -0.69%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Axcelis Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Axcelis Technologies possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Axcelis Technologies is currently trading at a Forward P/E ratio of 15.94. This valuation marks a discount compared to its industry's average Forward P/E of 27.67.
We can also see that ACLS currently has a PEG ratio of 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Manufacturing Machinery industry had an average PEG ratio of 3.23 as trading concluded yesterday.
The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 17% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ACLS in the coming trading sessions, be sure to utilize Zacks.com.
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Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report
