Semiconductor testing equipment company Aehr Test Systems (AEHR Quick QuoteAEHR - Free Report) is set to report fiscal second-quarter earnings results next week on Tuesday after the close. AEHR, a Zacks Rank #3 (Hold), has lost 45% of its value over the past 3 months. With markets showing renewed volatility heading into the announcement, is AEHR a buy?

AEHR is expected to post a profit of $0.18/share, reflecting potential growth of 12.5% versus the same quarter last year. Estimates for the quarter have remained flat over the past 30 days. AEHR missed the mark on earnings during the previous quarter when the company posted a -10% miss during fiscal Q1.

AEHR is part of the Zacks Electronics – Measuring Instruments industry, which currently ranks in the bottom 16% of all Zacks Ranked Industries. As such, we expect this group to underperform the market over the next 3 to 6 months. Investors should exercise caution heading into the announcement.