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Axcelis (ACLS) Surges 125% YTD: Will the Uptrend Persist?
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Axcelis Technologies’ (ACLS - Free Report) is witnessing strong momentum, with shares having soared 125% year to date compared with the sub-industry’s growth of 47.9%. The company is a leading producer of ion implantation equipment used in the fabrication of semiconductors.
Axcelis’ performance is being driven by robust customer demand for the company’s Purion suite of products. Axcelis’ product, Purion ion implanter, is designed to address high capital investments for processes requiring implants with higher energy and dosage. It allows chipmakers with the necessary capabilities to enhance their fabrication productivity and power device performance.
The transition to electric vehicles is driving the silicon-carbide power device market. This, in turn, is boosting demand for Purion products especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool.
Image Source: Zacks Investment Research
Driven by solid growth of Purion Power Series product line, the power device market segment represented 39% of the company’s shipped systems revenues in 2022. Per a report from Fortune Business Insights, the global power electronics market is expected to be valued at $153.3 billion by 2030, registering a CAGR of 13.8% from 2023 to 2030. This augurs well for Axcelis.
ACLS’ earnings per share are expected to increase 18.5% and 14.9% on a year-over-year basis to $6.47 and $7.44 in 2023 and 2024, respectively. The Zacks Consensus Estimate for 2023 and 2024 earnings has increased 16.6% and 6.1%, respectively, in the past 90 days reflecting analysts’ optimism.
The company’s revenues for 2023 are projected to rise 12.5% to $1.04 billion. For 2024, the revenues are anticipated to improve 10% to $1.14 billion.
However, ACLS’ performance is likely to be affected due to volatile supply-chain dynamics and global macroeconomic weakness. Increasing expenses toward research and development, and infrastructure are likely to be headwinds for this Zacks Rank #3 (Hold) stock.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings has increased 3.8% in the past 60 days to $3.58 per share. WWD’s long-term earnings growth rate is anticipated to be 13.5%. Shares of WWD have gained 26.2% in the past year.
The consensus mark for Watts Water Technologies’ 2023 earnings is pegged at $7.27 per share, up 2.1% in the past 60 days. The long-term earnings growth rate is anticipated to be 8%.
Watts Water Technologies’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 16.3%. Shares of WTS have increased 38.7% in the past year.
The consensus mark for Cadence’s 2023 earnings is pegged at $5.00 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 7.3%. Shares of CDNS have improved 45.2% in the past year.
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Axcelis (ACLS) Surges 125% YTD: Will the Uptrend Persist?
Axcelis Technologies’ (ACLS - Free Report) is witnessing strong momentum, with shares having soared 125% year to date compared with the sub-industry’s growth of 47.9%. The company is a leading producer of ion implantation equipment used in the fabrication of semiconductors.
Axcelis’ performance is being driven by robust customer demand for the company’s Purion suite of products. Axcelis’ product, Purion ion implanter, is designed to address high capital investments for processes requiring implants with higher energy and dosage. It allows chipmakers with the necessary capabilities to enhance their fabrication productivity and power device performance.
The transition to electric vehicles is driving the silicon-carbide power device market. This, in turn, is boosting demand for Purion products especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool.
Image Source: Zacks Investment Research
Driven by solid growth of Purion Power Series product line, the power device market segment represented 39% of the company’s shipped systems revenues in 2022. Per a report from Fortune Business Insights, the global power electronics market is expected to be valued at $153.3 billion by 2030, registering a CAGR of 13.8% from 2023 to 2030. This augurs well for Axcelis.
ACLS’ earnings per share are expected to increase 18.5% and 14.9% on a year-over-year basis to $6.47 and $7.44 in 2023 and 2024, respectively. The Zacks Consensus Estimate for 2023 and 2024 earnings has increased 16.6% and 6.1%, respectively, in the past 90 days reflecting analysts’ optimism.
The company’s revenues for 2023 are projected to rise 12.5% to $1.04 billion. For 2024, the revenues are anticipated to improve 10% to $1.14 billion.
However, ACLS’ performance is likely to be affected due to volatile supply-chain dynamics and global macroeconomic weakness. Increasing expenses toward research and development, and infrastructure are likely to be headwinds for this Zacks Rank #3 (Hold) stock.
Stocks to Consider
Some better-ranked stocks in the broader technology space are Woodward (WWD - Free Report) , Watts Water Technologies (WTS - Free Report) and Cadence Design Systems (CDNS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings has increased 3.8% in the past 60 days to $3.58 per share. WWD’s long-term earnings growth rate is anticipated to be 13.5%. Shares of WWD have gained 26.2% in the past year.
The consensus mark for Watts Water Technologies’ 2023 earnings is pegged at $7.27 per share, up 2.1% in the past 60 days. The long-term earnings growth rate is anticipated to be 8%.
Watts Water Technologies’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 16.3%. Shares of WTS have increased 38.7% in the past year.
The consensus mark for Cadence’s 2023 earnings is pegged at $5.00 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 7.3%. Shares of CDNS have improved 45.2% in the past year.