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Bull of the Day: Advanced Energy (AEIS)

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Today’s Bull of the Day is a little bit of a misnomer. Not that it’s not a bullish idea, but it’s the very name of the company that can throw people off. The company is called Advanced Energy (AEIS - Free Report) but surprisingly it’s not an oil company. Advanced Energy is a 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, solar cells, architectural glass and other advanced product applications. The company 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 OEM manufacturers.

If all that seems a little bit confusing, don’t worry about it. What’s clear as day is the way analysts feel about their business. Over the last 60 days, three analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimate from $2.26 to $2.51 for the current year, and jumped up next year’s numbers from $2.38 to $2.53. The bullish estimate has the company clocking in at a Zacks Rank #1 (Strong Buy).

Shares of AEIS have been on a great rune since the start of the year. Yearly lows were hit in late January with the stock trading near $24. Since then the rise has been quick and steady. The stock found support at the 50-day moving average several times this year, each time rallying as buyers rushed in. The recent selling has remained well above the 50-day that sits down at $41.82. A good trade up would be the stock coming down to the 50-day and the commodity channel index bouncing back from an oversold condition below -100. Currently the CCI is at -73 but a few more days of selling pressure would likely bring it below the mark.

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