Axcelis Technologies (ACLS) closed at $69.47 in the latest trading session, marking a +0.42% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. On the other hand, the Dow registered a gain of 1.18%, and the technology-centric Nasdaq increased by 1.03%.
Prior to today's trading, shares of the semiconductor services company had lost 5.6% over the past month. This has lagged the Computer and Technology sector's gain of 1.8% and the S&P 500's loss of 0.71% in that time.
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 $1.25, marking a 41.86% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $244.9 million, showing a 21.07% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.86 per share and a revenue of $1.01 billion, indicating changes of -21.13% and -10.63%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Axcelis Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Axcelis Technologies holds a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Axcelis Technologies is currently being traded at a Forward P/E ratio of 11.81. For comparison, its industry has an average Forward P/E of 22.66, which means Axcelis Technologies is trading at a discount to the group.
One should further note that ACLS currently holds a PEG ratio of 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Manufacturing Machinery industry currently had an average PEG ratio of 1.61 as of yesterday's close.
The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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