Should You Buy, Hold, or Sell ACM Research Stock Before Q1 Earnings?

ACM Research ACMR is scheduled to report first-quarter 2025 results on Thursday.ACMR released its preliminary first-quarter results on April 29. For the first quarter of 2025, revenues are expected to be between $165 million and $170 million, indicating year-over-year growth of 8.4%-11.7%.The Zacks Consensus Estimate for earnings is pegged at 37 cents per share, suggesting a decline of 28.85% from the year-ago figure. The figure has been unchanged over the past 30 days.ACM Research’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 97.86%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).ACM Research, Inc. Stock Price and EPS Surprise ACM Research, Inc. price-eps-surprise | ACM Research, Inc. QuoteLet’s see how things have shaped up before the announcement.Factors to Consider for ACMR Ahead of Q1ACMR’s first-quarter performance is expected to have benefited from strong demand for single-wafer cleaning, electroplating, furnace tools, and advanced packaging. New products, such as the high-temperature Sulfuric Peroxide Mixture (SPM), Tahoe, and other tools, are expected to have driven revenues in the to-be-reported quarter, especially in the Mainland China market.ACMR is expanding its market presence outside Mainland China, with increasing engagement with global customers. The company’s efforts to expand into the United States, Europe, Korea, Taiwan, and Singapore are expected to continue driving revenue growth in the to-be-reported quarter.ACMR’s diverse customer base, including major players like Huahong Group, SMIC, and YMTC, along with continued expansion into international markets, is expected to continue providing solid demand and revenue growth in the first quarter of 2025.The company’s furnace product line is gaining traction, especially with both memory and logic customers. The growing customer base and product demand for furnaces are expected to have resulted in increased revenues from this segment in the quarter to be reported.However, ACMR is expected to have faced significant challenges in the first quarter due to macroeconomic uncertainties and increasing competition in the semiconductor industry. The U.S. export restrictions also posed a challenge.ACMR Shares Trading CheapACM Research shares are cheap, as suggested by a Value Score of B.The ACMR stock is trading at a significant discount with a forward 12-month P/S of 1.18X compared with the sector’s 5.82X.ACMR is cheap compared to its peers, including Applied Materials AMAT, Lam Research LRCX and Tokyo Electron TOELY, which are currently trading at forward 12-month Price/Sales of 4.24X, 5.14X and 4.04X, respectively.Price/Sales Ratio (Forward 12 Months)Image Source: Zacks Investment ResearchThe company’s shares have soared 28.3% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s decline of 8%.YTD ACMR Stock PerformanceImage Source: Zacks Investment ResearchACMR shares have outperformed its peers, including Applied Materials, Lam Research and Tokyo Electron. These companies remain key competitors in the semiconductor equipment industry, particularly in wafer cleaning, deposition, and other critical fabrication processes.Applied Materials and Tokyo Electron shares have lost 4.9% and 1.2%, respectively. While Lam Research shares have gained 2.3% in the year-to-date period.ACMR Expands Product Portfolio With New Semiconductor ToolsACMR has diversified its product offerings across cleaning, plating, and advanced packaging, with new products, such as Tahoe, SPM and track and furnace tools contributing to its growth. These products target a substantial global semiconductor market, with ACMR estimating its Serviceable Available Market to be approximately $18 billion.Building on this momentum, the company announced in March 2025 that a major logic device manufacturer in mainland China has qualified its Single-Wafer High-Temperature SPM tool. The tool, designed for advanced semiconductor and packaging applications, features ACM’s proprietary nozzle design for superior particle control and reduced maintenance, supporting wet etching and wafer cleaning for technology nodes at 28nm and below.ConclusionDespite strong revenue growth and market share gains driven by its robust cleaning portfolio and technological advancements, ACMR faces challenges from macroeconomic uncertainties, increasing competition, and U.S. export restrictions, which could impact its near-term performance. Semiconductor stocks are under pressure as U.S. President Donald Trump’s decision to impose tariffs on top trading partners, including China, Mexico and Canada, has increased the risk of a trade war.ACM Research currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a favorable time to accumulate the stock. 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Click to get this free report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report ACM Research, Inc. (ACMR): Free Stock Analysis Report Tokyo Electron Ltd. (TOELY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks