IBD Stock Analysis
- Stock has formed a flat base with a buy point of 126.51
- Aggressive investors could use 122.41 as early entry point
- Shares move sporadically, trying again for third-stage base
Industry Group Ranking
* Not real-time data. All data shown was captured at
2:17PM EDT on
On the stock market today, Entegris stock rose more than 3% at one point but the overall market sank, so gains were pared to less than 1% to 120.64.
Aggressive investors could use 122.41 as an early entry point as ENTG stock moves above short-term resistance, according to IBD analysis.
Third Time’s A Charm?
Entegris stock has moved higher in fits and starts this year. In fact, its current base is at least its third try at a third-stage base in 2021. Entegris stock reached its record high 126.41 on two days this year — on April 5 and on Aug. 4.
Entegris stock is in the IBD Long-Term Leaders Portfolio, as is ASML.
Better-Than-Expected Industry Growth
Global semiconductor equipment billings surged 48% year over year to a record high of $24.9 billion in the second quarter, trade group SEMI reported. Billings rose 5% from the first quarter this year, the group said.
Chipmakers are adding new capacity to meet surging demand for semiconductors across industries. They also are investing in cutting-edge equipment to make next-generation chips.
Speaking at the recent Deutsche Bank Technology Conference, Entegris Chief Executive Bertrand Low said industry growth in 2021 has been much better than the company initially expected. The growth has been driven by strengthening demand in DRAM and Nand memory chips and from mainstream semiconductor fabs, Low said.
The company’s growth rate so far this year is significantly outperforming its three-year compound annual growth rate target of 9% to 10%, Deutsche Bank analyst Sidney Ho said in a note to clients Thursday. Entegris will likely revisit its midterm growth targets in the fourth quarter, Ho said.
“The company is increasingly more bullish about its growth opportunities, including higher Entegris content per wafer, as well as more volumes migrating to the leading-edge nodes,” Ho said.
However, Ho rates Entegris stock as hold.
Entegris Stock In Top Industry Group
IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
IBD’s semiconductor equipment group ranks No. 52 out of 197 industry groups for stock performance, including Entegris stock. Six months ago, the group ranked No. 25. Choosing highly rated stocks from leading industry groups in a confirmed stock market uptrend generally increases your chances of making profits in growth stocks.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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