ACM Research (ACMR) is a Zacks Rank #1 (Strong Buy) that has a B for Value and a B for Growth. The company has posted back to back beats that had positive surprises of more than 115% each, but following Liberation Day, this stock has slid back down. This semiconductor stock now has a forward PE of less that 10x making it very attractive to investors. Let’s explore more about why this stock is the Bull of the Day.
Description
ACM Research, Inc. engages in the development, manufacture, and sale of single-wafer wet cleaning equipment. It supplies process solutions that semiconductor manufacturers can use in numerous manufacturing steps to remove particles, contaminants and other random defects, and thereby improve product yield. The company tools can be used in fabricating foundry, logic and memory chips including dynamic random-access memory, or DRAM, and 3D NAND-flash memory chips. The company was founded by David H. Wang and Hui Wang in January 1998 and is headquartered in Fremont, CA.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
ACM Research (ACMR) has posted four consecutive beats of the Zacks Consensus Estimate. The takeaway from the earnings history is that the company has an average positive earnings surprise of 97% over the last year.
The most recent earnings print saw the company post $0.56 when the consensus was at $0.26. That 30 cent beats translates into a positive earnings surprise of 115%.
Earnings Estimates Revisions
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for ACM Research (ACMR).
This quarter has moved to $0.18, up from $0.37 over the last 60 days.
Next quarter has seen a smaller increase, moving from $0.35 to $0.49 over the same time period.
The full year 2025 has seen a big move, going from $1.80 to $2.15 over the last 60 days.
2026 saw a big move higher as well, going from $2.30 to $2.50 over the same period.
Growth
I see revenue in 2025 will come in around $928M which will end up being growth of about 18.7%.
Next year analysts are calling for sales of just over $1B which would be good for growth of 16.3%.
The most recent quarter saw topline growth of 31%, so those revenue estimates might turn out to be a little light.
Valuation
The forward PE of 9.7x is almost half of the market multiple of 18x and well below the industry average of 26x. Price to book comes in at 1.1x which is below the 3x level that will keep the value conscious interested in this stock. Price to sales comes in just under 1.55x and could easily expand in revenue growth maintains the 25% range on a year over year basis. Operating Margins have increased over the last couple of quarters moving from 12.31% to 13.12%.
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ACM Research, Inc. (ACMR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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