Growth Stocks With Rising Profit Estimates: Chip Stock Entegris

Today’s IBD Screen Of The Day column focuses on top growth stocks showing rising profit estimates. It’s one of several screens found in the IBD Stock Screener. This is a list of companies seeing their EPS estimates rising.


Chip equipment firm Entegris (ENTG) is in a very good position. Not only is the stock trading in a buy zone, but it’s expected to show rising profits amid a strong market for semiconductor manufacturing equipment.

Entegris is a leading supplier of advanced materials and process solutions for the semiconductor industry. The Massachusetts-based firm’s growth rate in 2021 so far has significantly outperformed its three-year compound annual growth rate target of 9% to 10%, according to a Deutsche Bank analyst.

Meanwhile, global semiconductor equipment billings surged 48% year over year to a record high of $24.9 billion in the second quarter, trade group SEMI reported. Chipmakers are increasing their capacity to meet surging demand for semiconductors across multiple industries.

Growth Stocks: Entegris In Buy Zone

Entegris stock last week broke out into the buy zone from a flat base, according to MarketSmith analysis, clearing an ideal buy point of 126.51. Despite the stock falling more than 3% on Monday, shares have remained inside the buy area, which goes to 132.84, since the breakout.

Aggressive investors could have used 122.41 as an early entry point, according to IBD analysis.

The relative strength line on this growth stock has been moving higher since early September and is trading near its highs.

Entegris has gained as much as 32% so far in 2021. The company maintains a strong IBD Composite Rating of 98. The growth stock’s year-over-year EPS has grown by an average 32% over the past three quarters. This exceeds IBD’s CAN SLIM requirement of 25% for top growth stocks.

Earnings are expected to show further year-over-year growth for the September-ended quarter, with a rise of 30%. For the full year, analysts expect EPS to climb 31%.

“Our excellent second quarter results were highlighted by 27% sales growth and record profitability and EPS,” said CEO Bertrand Loy in a recent news release. “In an industry environment that continues to be very dynamic, our manufacturing and supply chain teams have performed exceptionally well and been instrumental in delivering 25% organic growth in the first half of this year.”

Follow Fox on Twitter at @foxonstocks for more analysis other growth stocks.

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