Axcelis Technologies (ACLS) Gains As Market Dips: What You Should Know

In the latest trading session, Axcelis Technologies (ACLS) closed at $87.12, marking a +1.61% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. Elsewhere, the Dow saw a downswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.28%.

Heading into today, shares of the semiconductor services company had gained 4.55% over the past month, outpacing the Computer and Technology sector's loss of 2.12% and the S&P 500's loss of 3.59%.

The upcoming earnings release of Axcelis Technologies will be of great interest to investors. On that day, Axcelis Technologies is projected to report earnings of $0.71 per share, which would represent a year-over-year decline of 31.73%. In the meantime, our current consensus estimate forecasts the revenue to be $195.05 million, indicating a 1.29% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.54 per share and revenue of $840.2 million, which would represent changes of -27.46% and +0.14%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axcelis Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 25.84% fall in the Zacks Consensus EPS estimate. As of now, Axcelis Technologies holds a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Axcelis Technologies is at present trading with a Forward P/E ratio of 24.22. This represents a discount compared to its industry average Forward P/E of 24.53.

One should further note that ACLS currently holds a PEG ratio of 8.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Manufacturing Machinery industry had an average PEG ratio of 4.58 as trading concluded yesterday.

The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% 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.

To follow ACLS in the coming trading sessions, be sure to utilize Zacks.com.

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Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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