The support at 21.34 USD, which is currently being tested, should allow Ichor Holdings Ltd shares to move back to the upside.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The share is getting closer to its long-term support in weekly data, at USD 18.87, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 61% by 2020.
● The company returns high margins, thereby supporting business profitability.
● The company shows low valuation levels, with an enterprise value at 0.65 times its sales.
● Its low valuation, with P/E ratio at 7.45 and 6.02 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
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Ichor Holdings, Ltd is engaged in designing, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment. Its primary product offerings include gas and chemical delivery systems and subsystems, collectively known as fluid delivery systems and subsystems, which are key elements of the process tools used in the manufacturing of semiconductor devices. Its gas delivery subsystems deliver, monitor, and control precise quantities of the specialized gases used in semiconductor manufacturing processes, such as etch and deposition. Its chemical delivery systems and subsystems precisely blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes such as chemical-mechanical planarization, electroplating, and cleaning. It also provides precision-machined components, weldments, electron beam (e-beam) and laser-welded components, precision vacuum and hydrogen brazing, and surface treatment technologies.