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Axcelis Technologies (ACLS) Gains But Lags Market: What You Should Know

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Axcelis Technologies (ACLS - Free Report) closed at $53.74 in the latest trading session, marking a +0.88% move from the prior day. The stock lagged the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.15%.

Coming into today, shares of the semiconductor services company had lost 5.06% in the past month. In that same time, the Computer and Technology sector lost 2.82%, while the S&P 500 lost 3.49%.

Axcelis Technologies will be looking to display strength as it nears its next earnings release. On that day, Axcelis Technologies is projected to report earnings of $0.99 per share, which would represent year-over-year growth of 80%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $210 million, up 42.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.40 per share and revenue of $854.25 million, which would represent changes of +52.78% and +28.96%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Axcelis Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Axcelis Technologies is currently a Zacks Rank #2 (Buy).

Digging into valuation, Axcelis Technologies currently has a Forward P/E ratio of 12.12. Its industry sports an average Forward P/E of 10.85, so we one might conclude that Axcelis Technologies is trading at a premium comparatively.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 Zacks.com.


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