In the latest close session, Axcelis Technologies (ACLS) was up +1.95% at $145.01. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.62%.
Shares of the semiconductor services company have depreciated by 19.57% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.53%, and the S&P 500's gain of 1.61%.
Market participants will be closely following the financial results of Axcelis Technologies in its upcoming release. It is anticipated that the company will report an EPS of $0.9, marking a 20.35% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $205.1 million, indicating a 5.43% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.82 per share and revenue of $845.4 million. These totals would mark changes of -21.72% and +0.76%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axcelis Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Axcelis Technologies boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Axcelis Technologies is currently exchanging hands at a Forward P/E ratio of 37.27. This expresses a discount compared to the average Forward P/E of 39.73 of its industry.
We can also see that ACLS currently has a PEG ratio of 8.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Manufacturing Machinery was holding an average PEG ratio of 4.84 at yesterday's closing price.
The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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).