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Axcelis (ACLS) Upgraded to Strong Buy on Better Prospects

Zacks Investment Research upgraded Axcelis Technologies Inc.ACLS to a Zacks Rank #Array (Strong Buy) on Feb 24, 20Array6. Going by the Zacks model, companies holding a Zacks Rank #Array have strong chances of outperforming the broader market over the next few quarters.

Why the Upgrade?

Axcelis Technologies kept its earnings streak alive in fourth-quarter 20Array5, with earnings of Array cent per share beating the Zacks Consensus Estimate of breakeven. The company's top-line performance was impressive too, with revenues up Array2.7% year over year driven by strengthening Product and Services sales.

In addition, Axcelis Technologies' margin profile improved, with gross margin increasing ArrayArray0 basis points (bps) year over year. Cash and cash equivalents grew Array56.5% year over year.

For 20Array6, Axcelis Technologies anticipates growth in market share on the back of strengthening demand for the company's Purion products. For the initial quarter, the company predicts revenues in the mid-$60 million range, while gross margin will likely be in the mid-30% range.

Impressive fourth-quarter results as well as future outlook has boosted investors' optimism regarding Axcelis Technologies' prospects. Over the last 30 days, the Zacks Consensus Estimate for the stock has increased 64.3% to 23 cents per share for 20Array7; while remaining unchanged at Array2 cents for 20Array6. Also, the company currently has an Earnings ESP of +58.33% for 20Array6 and +34.78% for 20Array7.

Other Stocks to Consider

Axcelis Technologies currently has a market capitalization of approximately $284 million. Other stocks worth considering in the industry include EMCORE Corporation EMKR , Tessera Technologies Inc. TSRA and Brooks Automation, Inc. BRKS . All these stocks sport a Zacks Rank #Array (Strong Buy).

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TESSERA TEC INC (TSRA): Free Stock Analysis Report

BROOKS AUTOMATN (BRKS): Free Stock Analysis Report

AXCELIS TECH (ACLS): Free Stock Analysis Report

EMCORE CORP (EMKR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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