Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: MKS Instruments (MKSI) - MKS currently holds a Momentum Style Score of B, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - MKS shares have increased by 13.18% over the past week, significantly outperforming the Zacks Electronics - Miscellaneous Products industry, which rose by 1.59% [5] - Over the past month, MKS shares have risen by 20.23%, compared to the industry's 3.54% [5] - In the last quarter, MKS shares have surged by 30.4%, and they are up 22.05% over the past year, while the S&P 500 has only increased by 8.84% and 18.79%, respectively [6] Trading Volume - The average 20-day trading volume for MKS is 1,555,883 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for MKS has increased, while none have decreased, raising the consensus estimate from $6.94 to $7.01 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Given the strong performance metrics and positive earnings outlook, MKS is recommended as a stock to consider for near-term investment opportunities [10]

Summary of Conference Call Notes Industry Overview - **Industry**: Semiconductor Equipment and Memory Markets - **Key Focus**: Wafer Fabrication Equipment (WFE) market forecasts and company-specific performance in the semiconductor sector Key Points and Arguments WFE Market Outlook - **WFE Estimates Raised**: Global WFE estimates for 2025-2028 have been increased by an average of 10% due to stronger memory spending trends and an uptick in foundry investments [1][9] - **2026 Growth Drivers**: Anticipated $10 billion year-over-year growth in WFE for 2026 is primarily driven by DRAM ($3 billion), NAND ($3 billion), and Foundry ($4 billion) [7][11] - **China's WFE Growth**: Expected to underperform compared to the rest of the world through 2027 as it digests trailing-edge capacity [7] Company-Specific Insights - **Applied Materials (AMAT)**: - **Rating**: Buy - **Expectations**: Anticipated upside to guidance due to improved memory spending outlook despite recent weak guidance and export controls affecting China [2][20] - **Focus Areas**: Investors are expected to monitor commentary on 2026 industry growth, Foundry/Logic spending, and China exposure [20][23] - **Seagate Technology (STX)**: - **Rating**: Buy - **Caution**: Investor expectations are considered elevated, potentially leading to overbought conditions [3] - **Earnings Print**: Awaiting clearer insights on supply-demand balance, especially from large hyperscale customers [3] - **Lam Research (LRCX)**: - **Rating**: Buy - **Expectations**: Anticipated upside due to stronger memory spending, with a focus on 2026 WFE growth and gross margin trajectory [28][30] - **Investor Focus**: Commentary on 2026 growth expectations and updates on customer strategy [30] - **KLA Corporation (KLAC)**: - **Rating**: Neutral - **Expectations**: Modest upside anticipated due to positive memory spending trends, with a focus on 2026 growth commentary and advanced packaging revenue [36][39] - **MKS Instruments (MKSI)**: - **Rating**: Sell - **Expectations**: Slight upside expected, but high financial leverage could dampen performance [45][46] - **Investor Focus**: Memory market strength and gross margin stability [47] - **Teradyne (TER)**: - **Rating**: Sell - **Expectations**: Slight upside anticipated, with a focus on potential merchant GPU wins and Robotics growth [52][54] - **Investor Focus**: VIP market trajectory and updates on large customer announcements [55] Additional Important Insights - **Investor Sentiment**: Overall investor expectations are elevated across the semiconductor sector, particularly in memory and foundry segments, which may lead to volatility in stock performance [1][3][20][29] - **CapEx Trends**: Investors are closely monitoring capital expenditure forecasts from major players in the memory and foundry sectors, as these will significantly influence stock performance in the near term [24][31][40] Conclusion The semiconductor equipment industry is experiencing a positive outlook driven by increased memory and foundry spending. However, elevated investor expectations may pose risks for certain companies, particularly those with high valuations or exposure to export restrictions. Key companies to watch include AMAT, STX, LRCX, KLAC, MKSI, and TER, each with unique challenges and opportunities in the evolving market landscape.

Summary of Semiconductor Industry Conference Call Industry Overview - The conference call focused on the North American semiconductor industry, particularly the upcoming SEMICON West event and August Semiconductor Industry Association (SIA) data [1][2][3]. Key Insights - **SEMICON West Expectations**: The event is not expected to be a significant catalyst for the semiconductor sector. It is primarily a technology showcase rather than a financial event, limiting discussions on customer equipment orders and 2026 expectations [2][3]. - **Memory Market Outlook**: - The company is bullish on memory wafer fabrication equipment (WFE) with a projected growth of 22% year-over-year into 2026. This is supported by strong memory pricing, which is anticipated to lead to increased capital expenditures in memory [2][14]. - DRAM and NAND markets are expected to see a reacceleration in capital expenditures in the second half of the year, with significant equipment shipments anticipated in 2026 [2][13]. SIA Data Highlights - **August Performance**: - SIA data showed semiconductor sales increased by 11.3% month-over-month, surpassing the estimate of 4.5% and the 10-year average of 7.9%. Year-over-year growth accelerated from 20.6% to 21.7% [8][10]. - Memory sales were particularly strong, with DRAM sales up 45.4% month-over-month, exceeding the estimate of 30.3% [16]. - NAND sales also performed well, increasing by 39.0% month-over-month, compared to an estimate of 36.1% [16]. Geographic Trends - **Sales by Region**: - Asia Pacific saw the highest growth at 53.5%, followed by The Americas at 15.7%, China at 15.1%, and Europe at 2.5%. Japan experienced a decline of 9.1% [8]. Pricing Dynamics - **Memory Pricing**: - DRAM prices per gigabit increased by 1.2% to $0.4610, reflecting a year-over-year increase of 14.4%. NAND prices per gigabit decreased by 5.3% to $0.0085, with a year-over-year decline of 22.9% [21][24]. Future Projections - **Forecast Adjustments**: - The forecast for 2025 revenue growth was raised from 17.7% to 22.2%, and the 2026 forecast was adjusted to 15.1% ($887 billion) from 10.6% ($821 billion), primarily due to memory pricing trends [14]. - A new cycle for memory is anticipated to begin in 2026, driven by current market dynamics [13][14]. Risks and Considerations - **Geopolitical Factors**: Recent policy disruptions, including anti-dumping investigations and new regulations affecting equipment suppliers, may pose risks to the semiconductor sector. However, the near-term outlook remains optimistic for memory companies and AI beneficiaries [18]. Conclusion - The semiconductor industry is experiencing robust growth, particularly in the memory segment, with positive trends expected to continue into 2026. However, external factors such as geopolitical tensions and market dynamics will need to be monitored closely.

Core Viewpoint - Investors in the Electronics - Miscellaneous Products sector should consider MKS (MKSI) and Teradyne (TER) for potential value opportunities, with MKSI currently showing stronger indicators for value investment [1]. Valuation Metrics - MKSI has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while TER has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3]. - MKSI's forward P/E ratio is 18.38, significantly lower than TER's forward P/E of 44.76, indicating that MKSI may be undervalued compared to TER [5]. - The PEG ratio for MKSI is 1.49, while TER's PEG ratio is 2.95, further suggesting that MKSI offers better value considering its expected earnings growth [5]. - MKSI's P/B ratio is 3.39, compared to TER's P/B of 7.86, reinforcing the notion that MKSI is a more attractive investment based on traditional valuation metrics [6]. - Overall, MKSI has a Value grade of B, while TER has a Value grade of D, highlighting MKSI's superior valuation profile [6].

Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, offering additional metrics for stock selection [3][4] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score tracks price trends to identify optimal buying opportunities [6] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investment decisions [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +23.81% since 1988 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Stock Highlight: MKS Inc. - MKS Inc. is identified as a potential growth investment, currently holding a Zacks Rank of 3 (Hold) and a VGM Score of B [12] - The company is projected to experience a year-over-year earnings growth of 6.5% for the current fiscal year [12] - Recent upward revisions in earnings estimates by six analysts have increased the Zacks Consensus Estimate to $7.01 per share, reflecting a positive earnings surprise average of +15.9% [13]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios like P/E and Price/Sales [3] - Growth Score assesses a company's financial health and future growth potential based on earnings and sales projections [4] - Momentum Score capitalizes on price trends and earnings outlook changes to identify favorable investment opportunities [5] - VGM Score combines the three styles to highlight stocks with attractive value, growth, and momentum characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment success [10] Stock Highlight: MKS Inc. - MKS Inc. is a global provider of advanced manufacturing process control solutions, currently rated 3 (Hold) with a VGM Score of A [12] - The company has a Momentum Style Score of A, with shares increasing by 20.4% over the past four weeks [12] - Recent upward revisions in earnings estimates for fiscal 2025 have raised the Zacks Consensus Estimate by $0.37 to $7.01 per share, with an average earnings surprise of +15.9% [13]

Group 1 - Madison Mid Cap Fund's Class Y returned 5.2% in Q2 2025, underperforming the Russell Midcap Index which increased by 8.5% [1] - MKS Instruments, Inc. (NASDAQ:MKSI) was highlighted as a top stock, with a one-month return of 21.09% and a 52-week gain of 17.51% [2] - MKS Instruments reported Q2 2025 revenue of $973 million, reflecting a 4% sequential increase and a 10% year-over-year growth [4] Group 2 - The top five contributors to the Madison Mid Cap Fund in Q2 2025 included MKS Instruments, benefiting from improved sentiment in the semiconductor cycle [3] - MKS Instruments had a market capitalization of $8.638 billion as of September 19, 2025, with shares closing at $128.62 [2] - MKS Instruments was held by 33 hedge fund portfolios at the end of Q2 2025, an increase from 32 in the previous quarter [4]

MKS (MKSI) shares soared 8.8% in the last trading session to close at $129.92. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.2% gain over the past four weeks.MKS is benefiting from the growing demand in the Semiconductor and Electronics & Packaging markets, particularly in AI-related applications and NAND upgrades.This maker of analysis and processing equipment for semiconductor companies is expected to post quarterly earnin ...

Core Insights - MKS Inc. has released its 2025 Environmental, Social, Governance (ESG) Report, emphasizing its commitment to sustainability and responsible business practices [1][2] - The report outlines significant progress towards key ESG objectives, including renewable energy usage and emissions reduction [2][6] Environmental Initiatives - MKS has doubled the share of renewable electricity at three sites in Massachusetts and installed an 8,000 square-meter solar photovoltaic system in Guangzhou, China, expected to supply up to 75% of the site's annual energy needs [6] - The company achieved a reduction of 365 metric tons of CO₂e in 2024 compared to 2023, supporting its goal to reduce combined Scope 1 and 2 emissions by 42% by 2030, using 2022 as the baseline [6] - MKS completed its first consolidated Scope 3 emissions inventory, covering key categories such as Purchased Goods and Services and Use of Sold Products [6] Social Responsibility - The company conducted nearly 6,000 safety walks in 2024, resulting in a 37% reduction in recordable injury cases compared to 2023, highlighting its focus on workplace safety [6] - MKS achieved an 88% participation rate in its fourth annual global employee engagement survey, indicating strong employee trust and willingness to share feedback [6] Governance and Recognition - MKS received a "Low" ESG Risk Rating from Sustainalytics and was recognized in Newsweek and Statista's list of America's Most Responsible Companies [6] - The company has been honored for three consecutive years as one of the Best Companies to Work For by U.S. News & World Report, reflecting its commitment to employee satisfaction and corporate responsibility [6]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, aiding in timing investment decisions [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.75% since 1988 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks (4 or 5) should be avoided, even if they have high Style Scores, due to declining earnings forecasts [10] Company Spotlight: MKS Inc. - MKS Inc. is a global provider of advanced manufacturing process control solutions, currently rated 3 (Hold) with a VGM Score of A [11] - The company has a Value Style Score of B, supported by a forward P/E ratio of 15.24, making it attractive to value investors [11] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.32 to $6.94 per share, and an average earnings surprise of +15.9% [12]