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Here's Why Axcelis Technologies (ACLS) Fell More Than Broader Market

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Axcelis Technologies (ACLS - Free Report) closed the most recent trading day at $60.36, moving -1.85% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.83%.

Heading into today, shares of the semiconductor services company had gained 5.87% over the past month, lagging the Computer and Technology sector's gain of 8.67% and outpacing the S&P 500's gain of 5.17% in that time.

Market participants will be closely following the financial results of Axcelis Technologies in its upcoming release. On that day, Axcelis Technologies is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 52.9%. Meanwhile, the latest consensus estimate predicts the revenue to be $185.2 million, indicating a 27.8% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.29 per share and a revenue of $751.1 million, representing changes of -46.5% and -26.21%, respectively, from the prior year.

Investors should also pay attention to any latest changes in 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 13.81% higher. Axcelis Technologies presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Axcelis Technologies currently has a Forward P/E ratio of 18.69. This expresses a discount compared to the average Forward P/E of 21.25 of its industry.

Investors should also note that ACLS has a PEG ratio of 3.41 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACLS's industry had an average PEG ratio of 1.63 as of yesterday's close.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 229, finds itself in the bottom 7% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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