Every once in a while, you see things that make you double-check and triple-check what you're looking at, and Advanced Energy Industries ("AEIS") (AEIS)
is a case in point. This manufacturer of key components used in
semiconductor manufacturing and a variety of other specialized
manufacturing processes has continued to rack up excellent,
better-than-expected results. And the shares are … down about 10% from
when I last wrote about the company?
Over that same period, a grab-bag of other companies with exposures to many of the same primary markets (including Applied Materials (AMAT), MKS Instruments (MKSI), and Orbotech (ORBK))
are up anywhere from 30% to 60%. Although I thought AEIS was priced
pretty richly back at the time of that last update, I'm a little
surprised the strong reported financial performance hasn't kept the
stock price stronger.
That's not to say that I think
AEIS is cheap today. I think there's a "hey, it's not quite as
expensive as some other ideas in the space" relative valuation argument,
but the expectations that seem factored into the price today are still
pretty healthy. That said, if AEIS can continue to leverage the ongoing
investments in leading-edge semiconductor capacity and post strong
numbers, it won't surprise me if the sell-side starts making "buy this
laggard" calls.
Continue here:
Advanced Energy Industries Continues To Reap The Benefits Of The Semi Cycle
No comments:
Post a Comment