ACM Analysis (ACMR) is a Zacks Rank #1 (Robust Purchase) that develops, manufactures, and sells single-wafer moist cleansing gear for enhancing the manufacturing course of and yield for built-in chips.
The demand for synthetic intelligence and the chips that gas AI have introduced demand for ACM’s instruments. This has helped the corporate put up an extended streak of earnings beats, together with a 330% EPS beat final quarter.
The inventory has pulled again on the latest tech sell-off so the query for buyers is that if the present dip presents a chance.
Concerning the Firm
ACM Analysis is headquartered in Fremont, CA, and employs over 1,500.
The inventory has Zacks Model Scores of “D” in Progress, Momentum, and Worth.
The corporate was based in 1998, has a market cap of $1.4 billion, and a Ahead PE of 15. ACMR pays no dividend.
This fall Earnings Beat
On February 28th, ACMR reported a 330% EPS beat and noticed revenues up 56% y/y. The corporate affirmed its FY24 outlook vary of $650-725M versus the $707M anticipated.
Administration cited the energy of ACM’s multi-product portfolio and its rising buyer base. They added that they’ve captured market share and made notable strides in penetrating worldwide markets.
The inventory gapped larger and ran the following day posting a 30% acquire. Traders took discover of this small semiconductor identify but it surely has since pulled again as the following catalyst approaches.
The corporate will launch its preliminary income vary on April 26th earlier than the market opens. It is going to then launch its full outcomes on Could 8th.
That first launch will probably give buyers the inexperienced gentle to purchase the inventory once more or erase the bull’s hopes of getting again to latest highs.
Analyst Estimates
All indications are that the quarter will probably be strong as analysts lifted estimates since earnings.
For the present quarter, estimates over the past 60 days have gone from $0.19 to $0.36, or 89%.
Wanting long term, the present yr exhibits a 19% leap over that very same timeframe, shifting from $1.36 to $1.62.
Since earnings, the inventory has seen a number of upgrades and worth goal hikes.
ROTH MKM reiterated its Purchase and lifted its goal from $25 to $40.
Goldman Sach additionally reiterated its Purchase and has a $39 goal.
Benchmark has raised its goal twice since earnings, first going to $35, then later to $38.
The Technicals
At its highest level, ACMR was up 70% in 2024. The latest pullback has not been good to the bulls and the inventory is now up solely 25% this yr.
Whereas the upcoming earnings will probably rejuvenate the momentum or erode extra positive factors, there are some ranges to search for both approach.
The $19.25 space is the 200-day MA and could be in keeping with former resistance in 2023. If earnings have been to disappoint, this is able to be the realm to enter for long-term gamers.
$22.75 is the hole fill and the 61.8% retracement from the February lows to the 2024 highs. It is a great place to see a aid bounce and a potential assist space.
If the bulls acquire again momentum, a transfer again over the $27 space is a 50-day MA break and a bullish sign. A constructive earnings report and a break above $29.50 would give the bulls a 21-day MA break and full management of the momentum.
If we get a powerful preliminary income information, investors may search for the $38 space down the highway.
Backside Line
Extra buyers are searching for smaller shares to enter the AI/semi-boom. ACMR is an ideal place to be, however quite a lot of the short-term worth motion will probably be based mostly on upcoming earnings.
As a result of huge demand, the corporate probably beats as soon as extra, however buyers must resolve whether or not to dip their toes in earlier than the preliminary information or look forward to extra certainty.
Both approach, it is a inventory to look at over the following few weeks and if the corporate holds the earnings momentum, buyers ought to anticipate new highs earlier than the tip of 2024.
Prime 5 Dividend Shares for Your Retirement
Zacks targets 5 well-established corporations with strong fundamentals and a historical past of elevating dividends. Extra importantly, they’ve the sources and can to probably pay them sooner or later.
Click on now for a Particular Report full of unconventional knowledge and insights you merely gained’t get out of your neighborhood monetary planner.
See our Top 5 now – the report is FREE >>
ACM Research, Inc. (ACMR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
