Nova Ltd.'s high P/E ratio is alarming considering its forecasted negative earnings growth. The high stock price, indicating investor optimism, may not be sustainable due to declining earnings, posing a risk to shareholders and potential investors.
Nova's impressive quarter results and guidance for 3.6% YoY revenue growth suggest a potential rebound. However, high inventory levels remain a concern despite a recent decrease.
The market appears to have a higher opinion of the business than it did five years ago, likely due to its consistent growth. The recent improvement in total shareholder return could indicate that the business is improving over time.
Nova and Applied Materials outperformed analysts' EPS estimates, while IPG Photonics and Teradyne underperformed in revenue guidance. Despite mixed results, semiconductor stocks remained resilient, with an average 29.8% share price increase since last earnings.
Teradyne's stock up 18.5% post-results. Nova's stock up 31.6% after beating analyst estimates. Despite weak quarters, IPG Photonics and Marvell Technology's stocks are up 19.5% and 17.5% respectively. Applied Materials' stock down 2.2% despite strong quarter.
Nova's future EPS decline may negatively shadow its current high P/E ratio. Its predicted earnings do not support the optimistic sentiment, potentially impacting share prices and questioning reasonability.
Nova's in-line valuation and unattractive earnings growth do not constitute a compelling investment. Advised for potential investors to consider other factors and possibly wait for a price drop due to high volatility.
SpyderCall
OP
LuckyPiggie
:
lol!!! that is a good question. I don't know how they would do it. maybe this agreement will be for the ingredients or commodities required for making semiconductors. but then they would have to make a deal with another country that has those commodities in their country like China for example
LuckyPiggie
SpyderCall
OP
:
other than materials ( and China arent helping for sure ), logistic problem mainly cause by jam in US ports and custom. to make thing worst truck drivers been layoff . Many will not be getting their Xbox PlayStation for Christmas
SpyderCall
OP
LuckyPiggie
:
that sucks. I remember when the new Xbox came out I ordered one and I had to wait like six or eight months to get it. and then it turned out to be a faulty product. my disk drive does not work. and the warranty conveniently ran out a months before the disc drive stopped working
SpyderCall
OP
LuckyPiggie
:
and the logistic problems are definitely still in effect. I know this because I talked to people at the bar. a lot of them are in construction renovation or basically they have a business that orders materials from overseas. and all of them say that they are still waiting forever for their orders to be shipped to them. and they said it was not like this before the pandemic. they say the shipping times are a little bit better than when the pandemic was here but it is still way worse than before the pandemic
SpyderCall
OP
LuckyPiggie
:
one week would be crazy lol. But remember this could be a small chunk of a bigger options spread that an investor might be legging into or out of. So this is not enough data to make a play. But it does indeed look very bullish
SpyderCall
OP
LuckyPiggie
:
true. But if is a purchase that big you could assume its smart money that possibly could have a better idea of future price action. Its a very far expiration. And a very far out strike price. and they spent a ton on this these. Just makes me curious if they know some insider knowledge or something. I will be keeping an eye on these contracts
Nova Stock Forum
Government spending is a major component of many developed economies. There have been many many instances in history where government spending has boosted entire sectors of an economy. Including many companies share prices within a sector.
52 billion is a lot of money to put...
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