2 Cash-Rich Stocks Down Between 66% and 75% to Buy for a Turnaround

Market Overview - Some investors express concerns about an expensive market near all-time highs, but not all stocks are expensive or near their highs [1] - The high-growth technology sector, particularly companies focused on the auto and industrial markets, is experiencing a downturn due to rising interest rates leading to decreased demand [1] Axcelis Technologies - Axcelis Technologies is a leader in ion implantation equipment for semiconductor manufacturing, with a significant portion of its sales tied to silicon carbide (SiC) production [3][4] - Despite a downturn, 41% of Axcelis' 2024 sales are from SiC, and 97% are from trailing-edge chips used in various applications [4] - Earnings per share (EPS) peaked at $7.43 in 2023 but fell to$6.15 in 2024, with a projected 27% sequential revenue decline in Q1 2025 and EPS expected to drop to $0.38 [5] - The stock has decreased 66$201 to $59, but the company has$571.3 million in cash and no debt, equating to $17.48 per share, which is nearly 30$264 in 2021 to around $64 today, but the company holds$930.1 million in cash with no debt, representing $21.86 per share, or about one-third of its market cap [10] - The company’s peak earnings were$5.16 per share in 2021, and current trading reflects a P/E ratio of 12, which drops to 8.1 when excluding cash [10] - The new CEO plans to invest in differentiating technologies while being less aggressive with share repurchases, which may lead to short-term losses [11][12] - If there is a recovery in the industrial or auto sectors, IPG could see significant stock price appreciation, supported by its cash reserves [12]