In the latest trading session, Camtek (CAMT) closed at $88.92, marking a +1.6% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq gained 1.02%.
Heading into today, shares of the maker of automatic optical inspection and process enhancement systems had gained 20.39% over the past month, outpacing the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 4.99%.
The upcoming earnings release of Camtek will be of great interest to investors. The company is predicted to post an EPS of $0.79, indicating a 19.7% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $121.65 million, indicating a 18.58% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.2 per share and revenue of $487.08 million, indicating changes of +13.07% and +13.48%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Camtek. 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Camtek is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Camtek currently has a Forward P/E ratio of 27.36. This expresses a discount compared to the average Forward P/E of 32.53 of its industry.
One should further note that CAMT currently holds a PEG ratio of 2.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Electronics - Measuring Instruments industry was having an average PEG ratio of 2.07.
The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 30% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Camtek Ltd. (CAMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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