Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

Company Overview - Advanced Energy Industries (AEIS) shares increased by 7.6% to close at $169.75, supported by higher trading volume compared to normal sessions [1] - The stock has gained 6.8% over the past four weeks, indicating a positive trend [1] Market Demand - Advanced Energy is experiencing growth due to increased demand in the semiconductor and data center computing markets [1] - The semiconductor market growth is attributed to strong customer demand for products such as EVOS, eVerest, and NavX [1] Earnings Expectations - The upcoming quarterly earnings report is expected to show earnings of $1.47 per share, reflecting a year-over-year increase of 50% [2] - Revenue is projected to be $440.64 million, which is a 17.8% increase from the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Advanced Energy has been revised 8.1% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3] - The stock currently holds a Zacks Rank of 1 (Strong Buy), suggesting strong market confidence [3] Industry Context - Advanced Energy operates within the Zacks Semiconductor Equipment - Wafer Fabrication industry, which includes other notable companies like ASML [3] - ASML's stock also saw a 6.4% increase, closing at $927.8, with a 16.4% return over the past month [3]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, aiming to buy high and sell higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Advanced Energy Industries (AEIS) currently holding a Momentum Style Score of B [2] Group 2: Zacks Rank and Performance - AEIS has a Zacks Rank of 1 (Strong Buy), indicating a strong potential for outperformance in the market [3] - Stocks rated Zacks Rank 1 and 2 with Style Scores of "A or B" have historically outperformed the market over the following month [3] Group 3: Price Performance Metrics - AEIS shares increased by 2.41% over the past week, while the Zacks Semiconductor Equipment - Wafer Fabrication industry rose by 3.26% [5] - Over the last quarter, AEIS shares have risen by 19.26%, and by 59.67% over the past year, outperforming the S&P 500's gains of 10.17% and 18.61% respectively [6] Group 4: Trading Volume Insights - AEIS has an average 20-day trading volume of 291,007 shares, which serves as a bullish indicator when combined with rising stock prices [7] Group 5: Earnings Estimates and Revisions - In the past two months, five earnings estimates for AEIS have increased, raising the consensus estimate from $5.15 to $5.68 [9] - For the next fiscal year, five estimates have also moved upwards, with no downward revisions noted [9] Group 6: Conclusion - Considering all factors, AEIS is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Core Insights - ASML Holding aims for approximately 30% year-over-year growth in extreme ultraviolet (EUV) revenues by 2025, driven by increased Low Numerical Aperture (NA) EUV capacity and initial shipments of High NA systems [1][9] - Advanced customers like Taiwan Semiconductor Manufacturing, Samsung, and Intel are expected to add around 30% more EUV capacity compared to 2024, further supporting ASML's revenue growth target [1][9] Revenue and Product Performance - The NXE:3800E systems, now operating at a full specification of 220 wafers per hour, will enable customers to expand capacity while maintaining higher average selling prices, leading to improved margins [2] - In DRAM manufacturing, these systems replace complex multi-patterning deep ultraviolet (DUV) steps with single EUV exposures, resulting in reduced costs, shorter cycle times, and improved yields [2] Demand Drivers - Demand is being fueled by artificial intelligence (AI) applications, prompting investments in both logic and memory chips [3] - Logic customers are increasing leading-edge node capacity, while DRAM customers are adding more EUV layers to their latest and future nodes [3] Competitive Landscape - Competitors like Applied Materials and KLA Corporation are key players in advanced chipmaking tools, providing equipment that complements or competes with EUV systems [5] - Both companies are benefiting from the growing complexity of semiconductors and are investing in next-generation technologies, although they do not manufacture EUV systems [6] Financial Estimates - ASML expects total revenue growth of around 15% for 2025, with a Zacks Consensus Estimate for revenues at $37.83 billion, indicating a year-over-year increase of 23.8% [4] - The forward price-to-sales ratio for ASML is 7.54X, higher than the industry average of 7.06X [11] - Earnings estimates for fiscal 2025 imply a year-over-year growth of 30.1%, with recent upward revisions in estimates for both fiscal 2025 and 2026 [14]

Core Viewpoint - Advanced Energy Industries (AEIS) reported quarterly earnings of $1.5 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, and showing a significant increase from $0.85 per share a year ago, indicating strong performance in the power-conversion products sector [1][2]. Financial Performance - The company achieved revenues of $441.5 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.35% and up from $364.95 million year-over-year [2]. - Over the last four quarters, Advanced Energy has consistently exceeded consensus EPS estimates, achieving this four times [2]. Stock Performance - Advanced Energy shares have increased approximately 21.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.6% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $415.02 million, while for the current fiscal year, the estimate is $5.15 on revenues of $1.66 billion [7]. - The trend of earnings estimate revisions is mixed ahead of the earnings release, which may influence future stock movements [6][7]. Industry Context - Advanced Energy operates within the Semiconductor Equipment - Wafer Fabrication industry, which is currently ranked in the bottom 15% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Company Performance - Microchip Technology (MCHP) has returned 29.8% year-to-date, significantly outperforming the average gain of 8.6% in the Computer and Technology sector [4] - Over the past 90 days, the Zacks Consensus Estimate for MCHP's full-year earnings has increased by 30.2%, indicating improved analyst sentiment and a more positive earnings outlook [4] - Microchip Technology is currently ranked 2 (Buy) in the Zacks Rank system, which highlights stocks with characteristics likely to outperform the market [3] Industry Context - Microchip Technology belongs to the Semiconductor - Analog and Mixed industry, which includes 10 individual stocks and is currently ranked 91 in the Zacks Industry Rank [6] - The Semiconductor - Analog and Mixed industry has gained an average of 11.2% year-to-date, indicating that MCHP is performing better than its industry peers [6] - Another notable stock in the Computer and Technology sector is Advanced Energy Industries (AEIS), which has returned 20.6% year-to-date and has a Zacks Rank of 2 (Buy) [5]

Group 1 - Advanced Energy Industries, Inc. (AEIS) is experiencing significant activity in the options market, particularly with the July 18, 2025 $75 Put option showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to either a rally or a sell-off [2] - Advanced Energy Industries holds a Zacks Rank 2 (Strong Buy) in the Semiconductor Equipment - Wafer Fabrication industry, which is in the top 4% of the Zacks Industry Rank, with recent earnings estimates for the current quarter increasing from $1.23 to $1.28 per share [3] Group 2 - The high implied volatility for Advanced Energy Industries may indicate a developing trading opportunity, as options traders often seek to sell premium on options with such volatility to capture decay [4]

Company Performance - ASML's stock closed at $799.59, reflecting a +1.15% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.48% [1] - Over the past month, ASML shares have appreciated by 5.78%, underperforming the Computer and Technology sector's gain of 7.61% but outperforming the S&P 500's gain of 5.13% [1] Earnings Projections - ASML is set to release its earnings on July 16, 2025, with projected EPS of $5.94, indicating a 37.50% increase compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $8.55 billion, up 27.19% from the year-ago period [2] Annual Estimates - For the annual period, Zacks Consensus Estimates anticipate earnings of $27.47 per share and revenue of $37.33 billion, reflecting increases of +31.94% and +22.17% respectively from the previous year [3] Analyst Revisions - Recent modifications to analyst estimates for ASML are important as they reflect evolving short-term business trends, with positive revisions indicating optimism about the business outlook [3][4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows ASML currently holds a Zacks Rank of 3 (Hold) [5] - Over the last 30 days, the Zacks Consensus EPS estimate has increased by 1.13% [5] Valuation Metrics - ASML is trading at a Forward P/E ratio of 28.78, which is a premium compared to the industry average Forward P/E of 27.35 [6] - The company has a PEG ratio of 1.52, compared to the Semiconductor Equipment - Wafer Fabrication industry's average PEG ratio of 1.24 [7] Industry Ranking - The Semiconductor Equipment - Wafer Fabrication industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 11, placing it in the top 5% of over 250 industries [8]

Group 1 - Microsoft is currently one of 609 companies in the Computer and Technology sector, which ranks 4 within the Zacks Sector Rank [2] - Microsoft has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook with a 1.9% increase in the full-year earnings estimate over the past quarter [3] - Year-to-date, Microsoft has returned 18%, outperforming the average gain of 6.8% for the Computer and Technology sector [4] Group 2 - Microsoft belongs to the Computer - Software industry, which includes 30 companies and currently ranks 38 in the Zacks Industry Rank, with an average gain of 15.6% this year [5] - Advanced Energy Industries, another outperforming stock in the sector, has increased by 14.6% year-to-date and has a Zacks Rank of 2 (Buy) [4][5] - The Semiconductor Equipment - Wafer Fabrication industry, where Advanced Energy Industries is categorized, has two stocks and ranks 13, with a year-to-date gain of 15.6% [6]

Company Overview - Advanced Energy Industries (AEIS) shares increased by 3.6% to close at $128.97, supported by higher trading volume compared to normal sessions [1] - The stock has gained 5% over the past four weeks, driven by increased demand in the semiconductor and data center computing markets [1] Earnings Expectations - AEIS is expected to report quarterly earnings of $1.28 per share, reflecting a year-over-year increase of 50.6% [2] - Projected revenues for the upcoming report are $419.09 million, which is a 14.8% increase from the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for AEIS has been revised 7.4% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Context - AEIS operates within the Zacks Semiconductor Equipment - Wafer Fabrication industry, where ASML is another notable player [3] - ASML's consensus EPS estimate has increased by 0.7% to $5.87, representing a year-over-year change of 35.9% [4] - ASML currently holds a Zacks Rank of 2 (Buy), indicating a more favorable outlook compared to AEIS [4]