Amkor Tech: Zacks’ Bull of the Day Play

For a few weeks there it seemed like we were back in a dart board board market. What I mean by that is it seemed like you could throw a dart at a board full of tickers and find yourself a winner. While the majority of the gains were seen in basic materials, financials and healthcare, there was still a healthy rally across the board. The enthusiasm after the election carried on through to every corner of the market.

Last week though, things started to change. Several tech darlings which had rallied sharply were giving up ground. Rather than becoming scared of the entire industry, I spent this weekend shopping for stock ideas. One such idea is today’s Bull of the Day Amkor Tech (AMKRFree Report)

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. The company offers turnkey packaging and test services, including semiconductor wafer bumps, wafer probes, wafer backgrinds, package design, packaging, and test and drop shipment services. Its packages employ wirebond, flip chip, and copper clip interconnect technologies.

Over the last sixty days, there’s been one analyst that’s come out and increased earnings estimates for the current quarter, next quarter, the current year and next year. The bullish activity has pushed up our Zacks Consensus Estimate for the current year from 44 cents to 53 cents. Next year’s consensus number has increased even more dramatically, going from 62 cents to 80 cents.

Taking a quick look at the price, consensus and EPS surprise chart you can see clearly why the stock has been rallying all year. Estimates have been moving in a positive direction throughout 2016 while a string of earnings beats has occurred. The company has been earnings 5 quarters in a row dating back to last year. The recent run up to a new 52-week high at $12.48 was followed by a quick retrace down near $10. This has the stock oversold in the short term but with no change to the underlying fundamentals, I’m viewing this as a buying opportunity this week.

Now see our best long-term trades

As a Zacks Rank #1 Strong Buy, today’s Bull of the Day has a short-term 1 to 3-month profit zone. But the Zacks Rank system also leads to long-term investments with double and triple-digit profit potential. Starting today, you can look inside our stocks under $10, home run, and value portfolios, plus more. Want a peek? Click here >>

In-Depth Zacks Research for the Tickers Above

AMKOR TECH INC (AMKR) – FREE report >>

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