Yahoo Finance Amkor Technology, Inc. (AMKR) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Amkor Technology (AMKR)? Shares have been on the move with the stock up 22.2% over the past month. The stock hit a new 52-week high of $40.58 in the previous session. Amkor Technology has gained 20.5% since the start of the year compared to the 26.1% move for the Zacks Computer and Technology sector and the 34.8% return for the Zacks Electronics - Semiconductors industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2024, Amkor Technology reported EPS of $0.24 versus consensus estimate of $0.1 while it beat the consensus revenue estimate by 1%.
For the current fiscal year, Amkor Technology is expected to post earnings of $1.78 per share on $6.56 billion in revenues. This represents a 21.92% change in EPS on a 0.92% change in revenues. For the next fiscal year, the company is expected to earn $2.47 per share on $7.3 billion in revenues. This represents a year-over-year change of 38.76% and 11.16%, respectively.
Valuation Metrics
Amkor Technology may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Amkor Technology has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 40.5X. On a trailing cash flow basis, the stock currently trades at 9.9X versus its peer group's average of 17.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Amkor Technology currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Amkor Technology meets the list of requirements. Thus, it seems as though Amkor Technology shares could have a bit more room to run in the near term.
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Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report
