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Camtek (CAMT) Stock Declines While Market Improves: Some Information for Investors

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Camtek (CAMT - Free Report) closed at $87.95 in the latest trading session, marking a -1.62% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.27%.

The stock of maker of automatic optical inspection and process enhancement systems has risen by 27.11% in the past month, leading the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%.

The upcoming earnings release of Camtek will be of great interest to investors. The company is expected to report EPS of $0.79, up 19.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $121.62 million, up 18.55% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $3.19 per share and a revenue of $487.08 million, demonstrating changes of +12.72% and +13.48%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Camtek. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.4% lower. At present, Camtek boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Camtek is holding a Forward P/E ratio of 28.01. Its industry sports an average Forward P/E of 32.78, so one might conclude that Camtek is trading at a discount comparatively.

Meanwhile, CAMT's PEG ratio is currently 2.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Measuring Instruments industry currently had an average PEG ratio of 2.08 as of yesterday's close.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 54, finds itself in the top 22% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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