Advanced Energy Industries (AEIS - Free Report) is a Zacks Rank #5 (Strong Sell) and is in a sector that has been weak and looks to be getting weaker. Poor earnings reports from a few bigger chip stocks last week make it hard for analysts to get optimistic about raising estimates. That could keep this stock a Zacks Rank #5 (Strong Sell) for a while and that made me select is as the Bear of the Day.
Advanced Energy is a global leader in the development and support of technologies critical to high-technology, high-growth manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications.
Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers and end-users around the world.
Advanced Energy operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors,
When I see a stock with a Zacks Rank #5 (Strong Sell) I expect to see a lot of earnings misses. With AEIS, I see 3 beats and 1 miss in the last four reports.
That isn't what you should expect to see from a Bear of the Day.
AEIS does not have any positive earnings estimate revisions over the last 60 days. They do, however, have 6 negative revisions for this quarter, next quarter, this year and next year.
The Zacks Consensus Estimate for 2018 has moved from $4.76 to $4.46 over the last 90 days.
An even bigger move can be seen in the 2019 Zacks Consensus Estimate. That number moved from $5.33 to $4.42.
Those movements are the primary reason this stock has slid to a Zacks Rank #5 (Strong Sell) and is now the Bear of the Day.
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