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Camtek (CAMT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Camtek (CAMT - Free Report) ended the recent trading session at $110.05, demonstrating a -3.55% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.

Shares of the maker of automatic optical inspection and process enhancement systems have appreciated by 35.66% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.22%, and the S&P 500's gain of 3.5%.

Market participants will be closely following the financial results of Camtek in its upcoming release. On that day, Camtek is projected to report earnings of $0.8 per share, which would represent year-over-year growth of 6.67%. Alongside, our most recent consensus estimate is anticipating revenue of $125.05 million, indicating a 11.31% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.18 per share and a revenue of $493.28 million, representing changes of +12.37% and +14.92%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Camtek. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Camtek currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Camtek is presently being traded at a Forward P/E ratio of 35.86. This indicates a discount in contrast to its industry's Forward P/E of 43.7.

One should further note that CAMT currently holds a PEG ratio of 2.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Measuring Instruments was holding an average PEG ratio of 2.4 at yesterday's closing price.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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