Back to top

Image: Bigstock

Nova Ltd. (NVMI) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Nova Ltd. (NVMI - Free Report) closed at $137 in the latest trading session, marking a +0.04% move from the prior day. This change outpaced the S&P 500's 0.1% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the maker of monitoring systems used in chip manufacturing had gained 3.55% in the past month. In that same time, the Computer and Technology sector lost 1%, while the S&P 500 gained 3.67%.

Investors will be hoping for strength from Nova Ltd. as it approaches its next earnings release. In that report, analysts expect Nova Ltd. to post earnings of $1.05 per share. This would mark year-over-year growth of 90.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $118.4 million, up 55.18% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Nova Ltd.These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Nova Ltd. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Nova Ltd. is holding a Forward P/E ratio of 31.77. This represents a premium compared to its industry's average Forward P/E of 22.76.

Meanwhile, NVMI's PEG ratio is currently 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Semiconductors stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Nova Ltd. (NVMI) - free report >>

Published in