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Axcelis Technologies (ACLS) Gains But Lags Market: What You Should Know

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In the latest trading session, Axcelis Technologies (ACLS - Free Report) closed at $78.57, marking a +0.08% move from the previous day. The stock lagged the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the semiconductor services company had gained 13.06% over the past month. This has outpaced the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 3.76% in that time.

Investors will be hoping for strength from Axcelis Technologies as it approaches its next earnings release. In that report, analysts expect Axcelis Technologies to post earnings of $0.92 per share. This would mark year-over-year growth of 91.67%. Our most recent consensus estimate is calling for quarterly revenue of $193.2 million, up 45.5% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.99 per share and revenue of $812.55 million, which would represent changes of +38.54% and +22.66%, respectively, from the prior year.

Any recent changes to analyst estimates for Axcelis Technologies should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Axcelis Technologies is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Axcelis Technologies has a Forward P/E ratio of 19.68 right now. This represents a premium compared to its industry's average Forward P/E of 13.49.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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