Axcelis (ACLS 0.52%) is a beaten-down semiconductor stock that could be interesting for long-term investors.
The latest trading day saw Axcelis Technologies (ACLS) settling at $58.47, representing a +0.52% change from its previous close.
Axcelis faces challenges in the EV market and China but has strong long-term prospects due to SiC demand, AI, and cloud technologies. The company's financial stability, low debt, and undervaluation present a 21% upside, making Axcelis a "Buy" with a target price of $78. Despite a revenue drop in 2024, Axcelis' diversified segments and high-margin CS&I services ensure resilience and future growth.
Some investors worry about an expensive market near all-time highs. But not every stock is near its all-time high today, nor is every stock expensive.
Shares of Axcelis Technologies (ACLS -12.25%) sank in Tuesday's trading. The stock ended today's session down 12.3% and had been down as much as 14.6% earlier in the day.
Axcelis Technologies, Inc. (NASDAQ:ACLS ) Q4 2024 Earnings Call February 11, 2025 8:30 AM ET Company Participants David Ryzhik - SVP, IR and Corporate Strategy Russell Low - President and CEO James Coogan - EVP and CFO Conference Call Participants Charles Shi - Needham & Company Craig Ellis - B. Riley Securities Jed Dorsheimer - William Blair Jack Egan - Charter Equity Research David Duley - Steelhead Securities Thomas Diffely - D.A.
Axcelis Technologies (ACLS) came out with quarterly earnings of $1.54 per share, beating the Zacks Consensus Estimate of $1.25 per share. This compares to earnings of $2.15 per share a year ago.
In the closing of the recent trading day, Axcelis Technologies (ACLS) stood at $66.15, denoting a +0.68% change from the preceding trading day.
The Zacks Electronics - Manufacturing Machinery industry participants, such as ENTG, MKSI and ACLS, are benefiting from increased capital spending on high-performance computing, advanced packaging and memory.
Axcelis's Power Device segment, driven by SiC, has shown impressive growth, becoming the largest revenue contributor with an average growth rate of 61.7% from 2021 to 2024. Despite the overall semiconductor market's modest growth, Axcelis's competitive strengths in SiC devices have significantly outpaced the market, contributing to its robust performance. Based on a P/S valuation and projected revenue growth, we rate Axcelis as a Strong Buy.
In the most recent trading session, Axcelis Technologies (ACLS) closed at $69.47, indicating a +0.42% shift from the previous trading day.
Investors need to pay close attention to Axcelis Technologies (ACLS) stock based on the movements in the options market lately.