Amtech Systems ASYS shares rallied 8.1% in the last trading session to close at $15.94. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.5% gain over the past four weeks.
The optimism surrounding the stock can be attributed to Amtech’s strong AI-driven equipment demand, rising advanced packaging exposure, a higher-margin recurring revenue mix, improved operating leverage from cost cuts, and a debt-free balance sheet supporting growth and returns.
This provider of equipment for solar panel and semiconductor makers is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $19 million, down 22.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Amtech, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ASYS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Amtech belongs to the Zacks Semiconductor - General industry. Another stock from the same industry, Texas Instruments TXN, closed the last trading session 1% lower at $189.59. Over the past month, TXN has returned 7.1%.
For Texas Instruments, the consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $1.29. This represents a change of -0.8% from what the company reported a year ago. Texas Instruments currently has a Zacks Rank of #2 (Buy).
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Amtech Systems, Inc. (ASYS): Free Stock Analysis Report Texas Instruments Incorporated (TXN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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