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Camtek (CAMT) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Camtek (CAMT - Free Report) closed at $104.63, marking a +1.23% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw an increase of 0.44%.

The maker of automatic optical inspection and process enhancement systems's shares have seen an increase of 17.69% over the last month, surpassing the Computer and Technology sector's gain of 7.68% and the S&P 500's gain of 2.72%.

Investors will be eagerly watching for the performance of Camtek in its upcoming earnings disclosure. The company is expected to report EPS of $0.81, up 8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $124.84 million, up 11.13% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.18 per share and a revenue of $491.98 million, representing changes of +12.37% and +14.62%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Camtek. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Camtek possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Camtek is currently being traded at a Forward P/E ratio of 32.46. Its industry sports an average Forward P/E of 43.78, so one might conclude that Camtek is trading at a discount comparatively.

We can additionally observe that CAMT currently boasts a PEG ratio of 2.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Electronics - Measuring Instruments industry was having an average PEG ratio of 2.28.

The Electronics - Measuring Instruments industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 19, placing it within the top 8% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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