Photronics (PLAB) could be a great choice for investors looking to make a profit from fundamentally strong stocks that are currently on the move. It is one of the several stocks that made it through our "Recent Price Strength" screen.
How investors can use a screen to find the best Zacks Rank #1 (Strong Buy) stocks out of a group of over 200 highly-ranked companies to consider buying to start 2026.
The consensus price target hints at a 29.4% upside potential for Photronics (PLAB). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Photronics (PLAB) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
The mean of analysts' price targets for Photronics (PLAB) points to a 31.2% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Photronics' Q4 earnings and Q1 outlook confirm my initial thesis of a return to YoY growth in FY 2026. The ongoing DRAM shortage driving captives to outsource more high-end photomask production to merchants positions Photronics for a multi-year cycle of revenue growth and EBIT margin expansion. Photronics' ongoing expansions in Korea and the US position it to capitalize on Micron's and Samsung's DRAM capacity expansion projects, expected to come online in 2027 and 2028, respectively.
Photronics, Inc. (PLAB) Q4 2025 Earnings Call Transcript
Photronics (PLAB) came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.59 per share a year ago.
PLAB is up over 30% since I last covered the stock in April as tariff fears calmed down while management drove solid operational execution and increased buybacks. While Photronics' diverse manufacturing footprint mitigates direct tariff impact, tariff uncertainties continue to delay investments in critical end markets, reducing near-term photomask demand. Structural tailwinds remain strong, as chip & panel complexity continues increasing with AI-, EUV-, and OLED-driven technologies, pushing high-end photomask volumes and prices up.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Photronics (PLAB) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PLAB broke through the 20-day moving average, which suggests a short-term bullish trend.