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Bear of the Day: Advanced Energy Industries (AEIS)

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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.

Description

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,

Earnings History

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.

Estimate Revisions

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.

Chart

 

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