Amtech (ASYS) Soars 5.7%: Is Further Upside Left in the Stock?

Amtech Systems (ASYS) shares ended the last trading session 5.7% higher at $7.97. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 31.1% loss over the past four weeks.

The company is witnessing increasing demand for controlled atmosphere furnaces for production of Direct Bond Copper (DBC) substrates. These help in heat dissipation in power modules that are mostly used in electric vehicles. Amtech recently secured a repeat order for 20 controlled atmosphere furnaces for production of DBC substrates.

This provider of equipment for solar panel and semiconductor makers is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -257.1%. Revenues are expected to be $21 million, down 23.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Amtech, the consensus EPS estimate for the quarter has been revised 375% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on ASYS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see

the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Amtech is part of the Zacks Semiconductor – General industry. STMicroelectronics (STM), another stock in the same industry, closed the last trading session 2.7% higher at $35.73. STM has returned -10.6% in the past month.

STMicroelectronics’ consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.13. Compared to the company’s year-ago EPS, this represents a change of +37.8%. STMicroelectronics currently boasts a Zacks Rank of #1 (Strong Buy).

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