Zacks Analyst Interview Highlights: ASM Lithography and Varian Semiconductor
CHICAGO--Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Ken Nagy, who discusses ASM Lithography (Nasdaq: ASML) and Varian Semiconductor (Nasdaq: VSEA).
A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.
What are your top names among companies in your coverage?
Today, I'd just like to talk about two companies that are gaining market share right now. ASM Lithography (Nasdaq: ASML) - they're the largest OEM of advanced photolithography systems. Their March quarter revenue and EPS were in-line with consensus estimates. And going forward, we expect the revenue to climb as they continue to win market share. They have the leading generation immersion lithography tools, and that should lead to long-term growth.
Another one is Varian Semiconductor (Nasdaq: VSEA). Now what they do is, they are actually on the front line - one of the companies that do ion implementation. So they actually blast things called dopants onto the chips. And as technology nodes get smaller, other competitors' batch technology tends to break down, and it destroys some chips. Varian, on the other hand, they have what's called a double-magnet ribbon system, and that's a single-wafer producer. The Varian product doesn't damage the chips, but some of the other companies' products do. So we like Varian Semiconductor, as well.
So in summation, how would you advise investors play the semiconductor market going forward?
With the cyclality lately and the inventory gluts, I'd tend to tell investors to look toward gaining market share. Investors that are eager to insulate themselves from the quarter-to-quarter inventory gluts should focus on companies that are gaining market share. In this industry, you sort of either sell more by adding capacity or by being a technology leader. The technology leaders are the one who will sell more products in virtually all markets.
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About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2648.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
(a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money.
(b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
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Terry Ruffolo
Media Relations
312-630-9880, ext. 213
Visit: www.zacks.com
A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.
What are your top names among companies in your coverage?
Today, I'd just like to talk about two companies that are gaining market share right now. ASM Lithography (Nasdaq: ASML) - they're the largest OEM of advanced photolithography systems. Their March quarter revenue and EPS were in-line with consensus estimates. And going forward, we expect the revenue to climb as they continue to win market share. They have the leading generation immersion lithography tools, and that should lead to long-term growth.
Another one is Varian Semiconductor (Nasdaq: VSEA). Now what they do is, they are actually on the front line - one of the companies that do ion implementation. So they actually blast things called dopants onto the chips. And as technology nodes get smaller, other competitors' batch technology tends to break down, and it destroys some chips. Varian, on the other hand, they have what's called a double-magnet ribbon system, and that's a single-wafer producer. The Varian product doesn't damage the chips, but some of the other companies' products do. So we like Varian Semiconductor, as well.
So in summation, how would you advise investors play the semiconductor market going forward?
With the cyclality lately and the inventory gluts, I'd tend to tell investors to look toward gaining market share. Investors that are eager to insulate themselves from the quarter-to-quarter inventory gluts should focus on companies that are gaining market share. In this industry, you sort of either sell more by adding capacity or by being a technology leader. The technology leaders are the one who will sell more products in virtually all markets.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2648.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
(a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money.
(b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contacts
Zacks.com
Terry Ruffolo
Media Relations
312-630-9880, ext. 213
Visit: www.zacks.com
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