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Photronics (PLAB) Dips More Than Broader Markets: What You Should Know

Photronics (PLAB) closed the most recent trading day at $19.20, moving -0.41% from the previous trading session.

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This story originally appeared on Zacks

Photronics (PLAB) closed at $19.20 in the latest trading session, marking a -0.41% move from the prior day. This change lagged the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq lost 0.3%.

- Zacks

Coming into today, shares of the electronics imaging company had gained 40.73% in the past month. In that same time, the Computer and Technology sector gained 4.06%, while the S&P 500 gained 5.76%.

Wall Street will be looking for positivity from Photronics as it approaches its next earnings report date. On that day, Photronics is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 138.46%. Meanwhile, our latest consensus estimate is calling for revenue of $183.65 million, up 20.77% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.30 per share and revenue of $753 million. These totals would mark changes of +46.07% and +13.44%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Photronics. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 25.81% higher within the past month. Photronics is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Photronics's current valuation metrics, including its Forward P/E ratio of 14.83. Its industry sports an average Forward P/E of 16.61, so we one might conclude that Photronics is trading at a discount comparatively.

The Semiconductor Equipment - Photomasks industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PLAB in the coming trading sessions, be sure to utilize Zacks.com.



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