Strength Seen in Amtech (ASYS): Can Its 5.9% Jump Turn into More Strength?

Amtech Systems (ASYS) shares ended the last trading session 5.9% higher at $10.16. 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 35.6% gain over the past four weeks.

Amtech Systems extended its rally driven by growing demand for its products in the semiconductor industry. Moreover, increasing usage of power semiconductors in several automotive, renewable energy, mobile devices and wireless communications applications, is benefiting the company. Also, growing shipment of the company’s 300mm clustered HTR diffusion furnace is contributing well to the top-line growth

Price and Consensus

Price Consensus Chart for Amtech

This provider of equipment for solar panel and semiconductor makers is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +175%. Revenues are expected to be $18 million, up 24.5% 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 141.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates 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 2 (Buy). You can see

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