Axcelis Technologies (ACLS) closed at $142.31 in the latest trading session, marking a -3.69% move from the prior day. This change lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 1.05%.
Coming into today, shares of the semiconductor services company had gained 28.41% in the past month. In that same time, the Computer and Technology sector gained 6.36%, while the S&P 500 gained 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Axcelis Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.11, indicating a 8.26% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $230.05 million, up 7.7% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.12 per share and revenue of $883.6 million, indicating changes of -15.57% and +5.31%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Axcelis Technologies. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 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. Axcelis Technologies currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Axcelis Technologies is currently exchanging hands at a Forward P/E ratio of 35.87. This denotes a premium relative to the industry average Forward P/E of 33.18.
We can additionally observe that ACLS currently boasts a PEG ratio of 3.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Manufacturing Machinery was holding an average PEG ratio of 2.09 at yesterday's closing price.
The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.
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.
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
This article originally published on Zacks Investment Research (zacks.com).