The semiconductor industry is scrambling to catch up with burgeoning demand. That means it needs more chipmaker gear. The trend benefits Nova Measuring Instruments, whose stock has already been on a tear, soaring nearly fourfold since hitting a coronavirus crash low at 25.70 in March last year. Thursday afternoon, Nova Measuring Instruments (NVMI) was trading at 96.81. Nova Measuring is forming a base with a 99.89 buy point. The company plans to announced it quarterly results before the market opens on May 6.
Analysts expect earnings-per-share growth of 34% for the quarter, and 24% growth for the full year. Annual growth estimates for the small-cap tech company were recently revised higher.
Nova Measuring Profit Growth Eases
The company reported 8% earnings growth last quarter, to 55 cents per share. The prior three quarters it reported EPS growth of 27%, 50% and 43%. Israel-based Nova Measuring’s sales grew 18% in its most recent quarter, to $76.3 million.
Nova Measuring has an excellent 97 Composite Rating, of a possible 99. The Composite Rating contains a mix of five other IBD stock ratings. The best growth stocks have a Composite Rating of 90 or better.
Additionally, its B- Accumulation/Distribution Rating, on an A+ to E scale, indicates more funds and other large institutions are buying shares than selling.
And it holds the No. 12 rank among its peers in the Electronics-Semiconductor Equipment industry group, which ranks a lofty No. 15 on IBD’s list of 197 industry groups. Applied Materials (AMAT), ASML Hldgs (ASML) and Brooks Automation (BRKS) are among the top 5 highly rated stocks in the group.
The current formation is a third-stage ascending base.
Understand that buying a stock just ahead of earnings involves risk since you typically don’t have enough time to establish a profit cushion before the latest quarterly numbers come out. Be sure to follow sound buy and sell rules to minimize your exposure.
Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.
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