Yahoo Finance Camtek (CAMT) Soars 4.9%: Is Further Upside Left in the Stock?
Camtek CAMT shares ended the last trading session 4.9% higher at $123.50. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.5% gain over the past four weeks.
The upswing came after Barclays analyst Tom O'Malley raised the price target on Camtek to $140 from $105 and reiterated an Overweight rating on the stock. The analyst noted that Camtek has increased its total manufacturing footprint to $600 million from $500 million and is comfortable with its competitive positioning.
The company is benefiting from the rising adoption of advanced interconnect packaging technologies, such as heterogeneous integration, which includes chiplet modules and high bandwidth memory. Winning multiple system orders from several customers are contributing well to its top line.
This maker of automatic optical inspection and process enhancement systems is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +44.4%. Revenues are expected to be $101.45 million, up 37.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Camtek, 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 CAMT 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 >>>>
Camtek belongs to the Zacks Electronics - Measuring Instruments industry. Another stock from the same industry, Aehr Test Systems AEHR, closed the last trading session 9.2% higher at $11.11. Over the past month, AEHR has returned -8%.
Aehr Test Systems' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.11. Compared to the company's year-ago EPS, this represents a change of -52.2%. Aehr Test Systems currently boasts a Zacks Rank of #3 (Hold).
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Camtek Ltd. (CAMT) : Free Stock Analysis Report
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