Our Stock of the Week is ACM Research (ACMR). ACMR is in the very strong semiconductor sector but has lagged to some degree due to a large part of its business coming from China. ACRM has three primary product groups.
The first group includes cleaning products used to clean the surface of semiconductor wafers before they are put into production. The second group involves plating the wafers, and the third group involves advanced plating, which involves protecting them with metal, plastic, ceramic, or glass.
The market for their products is growing fast, and management believes the total addressable market is $16 billion. ACMR is targeting $1 billion in revenues, up from the current level of $558 million.
In its most recent quarter, sales grew 57%, and EPS was up 126% to $0.43. Shipments have not been as strong as hoped due to some customers building out their facilities. For 2024, ACMR expects shipments to grow faster than revenue, and in the current quarter, shipments are expected to far surpass those of the last quarter.
Technically, the stock has been forming a trading range after the very strong fourth-quarter report. Momentum traders are looking for a higher high in the $31-32 area before they become more aggressive.
As always, we will not chase strength on Monday but will look to aggressively trade the stock as technical conditions develop.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing no positions in ACMR. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
