Axcelis Technologies (ACLS) closed the most recent trading day at $88.71, moving -5.19% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.28%.
Shares of the semiconductor services company witnessed a gain of 18.76% over the previous month, beating the performance of the Computer and Technology sector with its gain of 10.49%, and the S&P 500's gain of 4.83%.
The investment community will be paying close attention to the earnings performance of Axcelis Technologies in its upcoming release. The company is forecasted to report an EPS of $1.01, showcasing a 32.21% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $200.3 million, indicating a 21.93% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $788.45 million, which would represent changes of -32.85% and -22.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Axcelis Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Axcelis Technologies is carrying a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Axcelis Technologies has a Forward P/E ratio of 22.67 right now. Its industry sports an average Forward P/E of 27.71, so one might conclude that Axcelis Technologies is trading at a discount comparatively.
The Electronics – Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
