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Bull Of The Day: Nova Measuring Instruments (NVMI)

Brian Bolan
·2-min read

Nova Measuring Instruments (NVMI) is a Zacks Rank #1 (Strong Buy) and sports an F for Value and a D for Growth.  This company helps the chip company keep their products to meet the exacting standards of the end customers. Let’s explore more about this company in this Bull of The Day article.

Description

NOVA LTD is a provider of metrology solutions for advanced process control used in semiconductor manufacturing. The company's product portfolio combines hardware and cutting-edge software. NOVA LTD, formerly known as NOVA MEASURING, is based in REHOVOT, Israel.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

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For NVMI, I see four straight beats of the Zacks Consensus Estimate.  That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).

The average positive earnings surprise over the course of the last year works out to be 15%.

Most Recent Quarter

The most recent quarter saw EPS come in at $1.24 and that was $0.07 more than the Zacks Consensus Estimate of $1.17.  That translates in to a 6% positive earning surprise.

Earnings Estimates Revisions

The Zacks Rank tells us which stocks are seeing earnings estimates move higher.  For NVMI, I see annual estimates moving higher.

Over the last 30 days, I see a few increases.

The full fiscal year 2022 has moved from $4.65 to $4.84.

Next fiscal year has also increased from $4.53 to $4.75.

Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).

Valuation

The valuation for NVMI is attractive with a 22x forward earnings multiple.  The company.  The company posted year over year sales of more than 45% in the most recent quarter. Margins  have increased from 25.5% to 26.8% over the last few quarters.


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