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Bull Of The Day: Kulicke and Soffa (KLIC)

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Kulicke and Soffa (KLIC - Free Report) is a Zacks Rank #1 (Strong Buy) and carries a growth Style Score of "A" and that alone with get the stock on my aggressive growth radar screen.  Let's take a look at why this stock is a Zacks Rank #1 (Strong Buy) and why it became the Bull Of The Day.

Description

Kulicke & Soffa is a leading provider of semiconductor packaging and electronic assembly solutions supporting the global automotive, consumer, communications, computing and industrial segments. As a pioneer in the semiconductor space, K&S has provided customers with market leading packaging solutions for decades. In recent years, K&S has expanded its product offerings through strategic acquisitions and organic development, adding advanced packaging, electronics assembly, wedge bonding and a broader range of expendable tools to its core offerings. Combined with its extensive expertise in process technology and focus on development, K&S is well positioned to help customers meet the challenges of packaging and assembling the next-generation of electronic devices.

Earnings

KLIC has an impressive streak of 9 beats of the Zacks Consensus Estimate.  The last four have been very impressive with the company posting a posting an average positive earnings surprise of 49%.

The most recent report saw the company come in with $0.51 when $0.26 was expected.  That $0.25 beat translates into a 96% positive earnings surprise.  

Following the most recent earnings report, estimates have moved higher.

Estimates

60 days ago, the Zacks Consensus Estimate was at $1.69, but it has shot higher following the big beat.  The current year estimate now states at $2.23.

The move was not regulated to this year alone, as estimates for next fiscal year also moved higher.  Prior to the beat, the Zacks Consensus Estimate was at $1.98 and is now at $2.45.

Valuation

KLIC trades at 12x trailing and 11.2x forward earnings estimates and that is well below the industry average of 18x.  The company also shows a discount to the industry multiple for price to book at 2x compared to 3.3x as well as price to sales of 2x compared to an industry average of 3.1x.

Chart

The Hottest Tech Mega-Trend of All Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

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