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.
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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...
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