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Analyst Blog

Zacks Investment Research upgraded Rudolph Technologies Inc. (RTEC - Snapshot Report) to a Zacks Rank #1 (Strong Buy) on Sep 27, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market in the near term.

Why the Upgrade?

Market sentiments have been favoring Rudolph Technologies since the beginning of 2016, as evident from the 23.5% rise in the company’s share price to date. Also, the company has a sound earnings surprise record, with an average positive surprise of 13.1% for the last four quarters. In the last quarter, the company’s earnings of 28 cents per share exceeded the Zacks Consensus Estimate of 21 cents by 33.3%.

Rudolph Technologies’ top line grew 15% sequentially driven by healthy results in the Lithography Systems Group. Also, software sales accounted for roughly 12% of total revenue. In the quarters ahead, the company aims to benefit from its newly introduced technologies as well as from healthy demand for RF filters and wafer-level packaging solutions. In Sep 2016, Rudolph Technologies launched new inspection solutions for front-and back-end semiconductor manufacturing.

Impressive results, outlook and innovation have made investors optimistic about Rudolph Technologies’ prospects. Over the last 60 days, the Zacks Consensus Estimate for the stock increased by 14.6% to 94 cents per share for 2016 and by 44.6% to $1.07 per share for 2017.

RUDOLPH TECH Price and Consensus


RUDOLPH TECH Price and Consensus | RUDOLPH TECH Quote

Other Stocks to Consider
Rudolph Technologies currently has a market capitalization of $553 million. Other stocks worth mentioning in the electronic manufacturing machinery industry include Aixtron SE (AIXG - Snapshot Report) , Intevac Inc. (IVAC - Snapshot Report) and Nikon Corporation (NINOY - Analyst Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aixtron SE has reported better-than-expected results in the last quarter, with a positive average surprise of 9.1%. Also, the loss per share estimate for 2016 has decreased over the last 60 days.

Intevac Inc. reported better-than-expected bottom-line results in the last four quarters, with an average positive surprise of 30%. Also, the loss per share expectations for 2016 and 2017 has been reduced over the past 60 days.

Nikon Corporation has witnessed positive revisions in earnings estimates for fiscal 2017 and 2018 over the past 60 days. Also, the company has a positive average earnings surprise of 48.61%.

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