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MKS Instruments Upped to Strong Buy on Bright Prospects
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On Mar 15, Zacks Investment Research upgraded MKS Instruments, Inc. (MKSI - Free Report) to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market.
In the last one month, MKS Instruments’ shares yielded a return of 1.78%, outperforming the loss of 2.23% recorded by the Zacks categorized Electronics Manufacturing Machinery industry.
Why the Upgrade?
Market sentiments have been favoring MKS Instruments for quite some time now, especially after the company reported better-than-expected results in all quarters of 2016. In the last reported quarter, earnings of $1.05 per share exceeded the Zacks Consensus Estimate of $1.00 by 5%.
MKS Instruments anticipates benefiting from the integration of its acquired assets of Newport Corporation (completed in Apr 2016). From this buyout, the company realized annualized synergistic benefit of approximately $20 million, exiting 2016. It estimates total synergies to be roughly $40 million, revised up from the earlier projection of $35 million by 2018 end. In addition, the company aims at reducing its debt levels and lowering interest costs. For first-quarter 2017, MKS Instruments anticipates sales to range within $385−$425 million and adjusted earnings within $0.93–$1.17 per share.
Also, MKS Instruments believes in rewarding its shareholders handsomely through dividend payments. It raised its quarterly dividend rate by 3% in February.
Investors seem to be optimistic about MKS Instruments’ future prospects, as evident from positive revisions in earnings estimates for the stock. Over the last 60 days, the Zacks Consensus Estimate for the company increased 5.1% to $1.03 for 2017 and 11.8% to $1.14 for 2018.
Axcelis Technologies, Inc. reported better-than-expected results in the last four quarters, with an impressive average positive earnings surprise of 151.5%. In addition, earnings expectations for 2017 and 2018 improved over the past 60 days.
Cohu, Inc.’s earnings estimates for 2017 have been revised upward, over the last 60 days. Also, results were better than expected with a remarkable average earnings surprise of 117.86%, for the trailing four quarters.
Entegris, Inc. witnessed positive revisions in earnings estimates for 2017 and 2018, over the past 60 days. Average earnings surprise is a positive 16.91% for the past four quarters.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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MKS Instruments Upped to Strong Buy on Bright Prospects
On Mar 15, Zacks Investment Research upgraded MKS Instruments, Inc. (MKSI - Free Report) to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market.
In the last one month, MKS Instruments’ shares yielded a return of 1.78%, outperforming the loss of 2.23% recorded by the Zacks categorized Electronics Manufacturing Machinery industry.
Why the Upgrade?
Market sentiments have been favoring MKS Instruments for quite some time now, especially after the company reported better-than-expected results in all quarters of 2016. In the last reported quarter, earnings of $1.05 per share exceeded the Zacks Consensus Estimate of $1.00 by 5%.
MKS Instruments anticipates benefiting from the integration of its acquired assets of Newport Corporation (completed in Apr 2016). From this buyout, the company realized annualized synergistic benefit of approximately $20 million, exiting 2016. It estimates total synergies to be roughly $40 million, revised up from the earlier projection of $35 million by 2018 end. In addition, the company aims at reducing its debt levels and lowering interest costs. For first-quarter 2017, MKS Instruments anticipates sales to range within $385−$425 million and adjusted earnings within $0.93–$1.17 per share.
Also, MKS Instruments believes in rewarding its shareholders handsomely through dividend payments. It raised its quarterly dividend rate by 3% in February.
Investors seem to be optimistic about MKS Instruments’ future prospects, as evident from positive revisions in earnings estimates for the stock. Over the last 60 days, the Zacks Consensus Estimate for the company increased 5.1% to $1.03 for 2017 and 11.8% to $1.14 for 2018.
MKS Instruments, Inc. Price and Consensus
MKS Instruments, Inc. Price and Consensus | MKS Instruments, Inc. Quote
Other Stocks to Consider
MKS Instruments, Inc. has a market capitalization of $3.69 billion. Other similarly-ranked stocks in the industry include Axcelis Technologies, Inc. (ACLS - Free Report) , Cohu, Inc. (COHU - Free Report) and Entegris, Inc. (ENTG - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Axcelis Technologies, Inc. reported better-than-expected results in the last four quarters, with an impressive average positive earnings surprise of 151.5%. In addition, earnings expectations for 2017 and 2018 improved over the past 60 days.
Cohu, Inc.’s earnings estimates for 2017 have been revised upward, over the last 60 days. Also, results were better than expected with a remarkable average earnings surprise of 117.86%, for the trailing four quarters.
Entegris, Inc. witnessed positive revisions in earnings estimates for 2017 and 2018, over the past 60 days. Average earnings surprise is a positive 16.91% for the past four quarters.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>