By Hassan
Malik @hmalik21
Experienced
investors know not to bet with the flow but against the tide. A slight pullback
in a share price doesn’t always mean a stock is doomed for good. In this
regard, one stock that investors might find intriguing is IPG Photonics Corporation (NASDAQ: IPGP).
Its stock price slipped recently but this shouldn’t off put investors. Often
times, a rising tide will lift all boats in an industry, as there can be broad
trends taking place in a segment that is boosting securities across the board.
This is arguably the case with the Semiconductor Equipment & Materials
space under which IPG Photonics operates. According to Zacks Research, the
industry has a ranking of 32 out of more than 250 participating. However,
individually speaking, shares of the high-powered laser maker are intriguing
for the following reasons:
1. On October
28, 2014, the company announced its Q3 financials. On per a share basis, reported
earnings were $1.05, which beat initial analysts’ estimates of $0.98.
2. Over the
past month, current quarter estimates have risen from $0.91 to $0.94 per share.
Current year estimates have also risen from $3.56 per share to $3.66 per share.
3. Expert analysts
at Zacks Research have given IPGP a #2 (buy) rating, further fortifying its
solid position.
4. The
company has also seen solid earnings estimates over the past month, suggesting
that the Street has become more bullish on the firm’s prospects in both the
short and long term.
5. On a per
annum basis, one can see that the firm has reported strong net income in the
last year. For the year ending December 31, 2013, net income applicable to
common shares was $155,860,000. This figure was 145,004,000 in the year 2012 and
117,759,000 for the year 2011. That is nearly an 8% increase from 2012 to 2013
and a staggering 32% increase from 2011 to 2013.
The trend,
then, appears promising for IPG Phonics Corporation. Not only is its overall
industry in the top third, but it is also seeing solid estimate revisions as of
late, suggesting that it can be a very good entry point for those investors
looking to venture out into the semiconductor equipment and material sector.
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