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MKS Instruments' Prospects Look Bullish with Few Risks

On Sep 28, 2015, we issued an updated research report on premium technology company MKS Instruments, Inc.MKSI . The company provides instruments, subsystems and process-control solutions to measure, control, power, monitor and analyze parameters of manufacturing processes. Although MKS Instruments commands a high brand value, its business is exposed to threats of external market rivalry and volatility.

Growth Drivers

Rapidly growing semiconductor business, solid performance in certain niche international markets and an efficient operating model are three major growth drivers for MKS Instruments. The company expects favorable environment in advanced semiconductor markets to support growth in its revenues and earnings for third-quarter 2015. Moreover, the company continues to improve its cash position with the help of tactical cost-saving plans. Armed with healthy liquid assets, MKS Instruments aims to reward its shareholders through share repurchase and dividend payout programs in the upcoming quarters.

Few Hints of Trouble

We believe this Zacks Rank #2 (Buy) stock would steadily improve its top- and bottom-line results in the quarters ahead. However, certain industry-specific headwinds might hurt its financial prospects. For instance, being multinational in nature, MKS Instruments is exposed to several market uncertainties. Political, economical, social and technological changes in foreign countries often adversely influence the company's affairs.

Moreover, the company faces the risks of market share loss due to extensive industry rivalry. To avoid this, the firm attempts to enhance its competency through innovation, which entails huge expenses. However, in the rapidly evolving technology market, expensive inventions often become obsolete within a short span of time, and hence lead to loss.

Stocks to Consider

MKS Instruments currently carries a Zacks Rank #2 (Buy). Other well-ranked stocks in the industry include Axcelis Technologies Inc. ACLS , Tessera Technologies Inc. TSRA and Veeco Instruments Inc. VECO . All three stocks sport a Zacks Rank #1 (Strong Buy).

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TESSERA TEC INC (TSRA): Free Stock Analysis Report

MKS INSTRUMENTS (MKSI): Free Stock Analysis Report

VEECO INSTRS-DE (VECO): Free Stock Analysis Report

AXCELIS TECH (ACLS): 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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