Up 40% YTD, Will Nova Measuring Instruments Continue to Rally?

NASDAQ: NVMI | Nova Measuring Instruments Ltd. - Ordinary Shares News, Ratings, and Charts

NVMI – Nova Measuring Instruments (NVMI) is rallying along with medical device stocks. The sector is benefitting from pent-up demand, and the economy returning to normal. Find out if NVMI will keep rallying?.

Nova Measuring (NVMI) has been in business for nearly 30 years. Based in Rehovot, Israel, NVMI has more than 700 employees. NVMI makes its money through the production of metrology devices. These devices are used for the process controls required to manufacture semiconductors.

 

NVMI was priced around $70 last June. The stock steadily increased throughout the ensuing six months, breaking through the $100 benchmark a couple of weeks ago. NVMI is up nearly 42% year to date.
 
Can NVMI continue its ascent? Let’s take a closer look at NVMI to determine if the stock stands a good chance of moving even higher in the quarters ahead.
 
NVMI Points of Note

NVMI’s engineers brainstorm, manufacture and market measurement and monitoring systems used by the top players in the semiconductor manufacturing industry. The Integrated metrology concept was pioneered by NVMI. The company has since expanded its operations with the creation of Integrated Monitoring and Process Controls used for Etch manufacturing, Photolithography, CVD, and CMP manufacturing operations. NVMI’s systems for process control have measured that many more wafers than the entirety of the company’s competitors combined.

NVMI has solid price returns in recent months and years. Check out the stock’s price returns in-depth and you will find everything is green (meaning positive price returns) but for the stock’s performance in 2018 when the price return was -12%. NVMI has a year-to-date price return of 42%. The stock’s 2020 price return was 86%. NVMI has a three-year price return of 227%.

NVMI has a forward P/E ratio of 34.17. This is a slightly elevated forward P/E ratio though it is somewhat tolerable considering NVMI is $3 away from its 52-week high and provides tech powerhouses with the tools they need to generate the chips people and businesses use on a daily basis. The stock’s 52-week low is $45.05.

NVMI has a reasonable beta of 1.14. This means the stock probably won’t fluctuate much should the market become highly volatile. If market fluctuations make you nervous or if you dread the idea of potentially losing upwards of 5% to 10% of your investment in a single day or two, you won’t have any qualms about adding NVMI to your portfolio.

NVMI POWR Ratings

NVMI is a Hold in the context of the POWR Ratings. The stock’s overall POWR Rating grade is a C. NVMI has Bs in the Quality and Momentum components. The stock has Cs in the Sentiment and Stability components. Investors who would like to learn more about how NVMI grades out in the rest of the POWR Ratings components such as Value and Growth can do so by clicking here.

Of the 98 stocks in the Semiconductor & Wireless Chip space, NVMI is ranked in the top half, slotting in at number 49 overall. This space as a whole has a POWR Rating of B. You can find out more about the stocks in the Semiconductor & Wireless Chip category by clicking here.

The Analysts’ Take on NVMI

The analysts who have issued NVMI recommendations are largely bullish. A total of four analysts have performed a deep dive into this stock with three insisting it is a Buy and one considering it a Hold. No analysts consider NVMI to be a Sell or a Strong Sell. Furthermore, it is also worth mentioning NVMI’s average analyst price target has increased $2.50 across the prior four weeks.

Will NVMI Continue to Move Higher?

It is possible that NVMI will move even higher to finish out the second half of the year. However, NVMI has a C grade in the POWR Ratings. This means NVMI is not a Buy at its current price point. If the stock slides down in the days or weeks ahead or if positive news comes out of the NVMI camp, the stock could move up to a B POWR Rating. Investors should remain on the sidelines and reconsider NVMI after it performs better in the POWR Ratings.


NVMI shares were trading at $101.30 per share on Thursday afternoon, up $1.28 (+1.28%). Year-to-date, NVMI has gained 43.48%, versus a 13.75% rise in the benchmark S&P 500 index during the same period.


About the Author: Patrick Ryan


Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NVMIGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

The Fallacy of “Peak Everything”

Connected to the inflation conversation is the theory of “Peak Everything”. This idea is making its rounds through the investing world with shock waves of trading activity. Let’s talk about what it is...What it really means for the future of the S&P 500 (SPY)...And why, we will end up on the right side of action. Read on below to find out more…

:  |  News, Ratings, and Charts

Could the Fed’s Rate Reversal Lead to More Volatility in the Stock Market?

Inflation has become a recurring theme in my comments due to a notable rise in inflation metrics and how they have affected the S&P 500 (SPY). The Fed has consistently spoken of inflation being transitory over the past couple of months, which has resulted in investors becoming less concerned over higher prices. But it appeared that the Fed reversed course as it is now, indicating it would raise rates ahead of schedule. This created more volatility in the markets leading to a tough day on Friday. But, if you look closer at their remarks, not everything is as it seems. I will expand on my point below. But first, let's recap the past week in the markets. Read on below…

:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

:  |  News, Ratings, and Charts

3 Top Biotech Stocks To Bolster Your Portfolio

Illumina (ILMN), Jazz Pharmaceuticals (JAZZ), and Amgen (AMGN) are 3 of the top biotech stocks. The sector has been an underperformer over the last few years but could start outperforming given the aging population, low valuation, and growth potential.

:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

Read More Stories

More Nova Measuring Instruments Ltd. - Ordinary Shares (NVMI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NVMI News