<!-- HTML_TAG_START -->NasdaqGS:ENTG Earnings and Revenue Growth December 29th 2024<!-- HTML_TAG_END -->
Today we’re going to take a look at the well-established Entegris, Inc. (NASDAQ:ENTG). The company’s stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$117 at one point, and dropping to the lows of US$97.67. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Entegris’ current trading price of US$102 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Entegris’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Entegris
According to our price multiple model, where we compare the company’s price-to-earnings ratio to the industry average, the stock currently looks expensive. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Entegris’s ratio of 67.25x is above its peer average of 29.51x, which suggests the stock is trading at a higher price compared to the Semiconductor industry. But, is there another opportunity to buy low in the future? Given that Entegris’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Entegris. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
Are you a shareholder? ENTG’s optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe ENTG should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
