Why Camtek (NASDAQ:CAMT) Stock is Surging Today

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Camtek Ltd. (NASDAQ:CAMT) has reached a new high in terms of its shares and is now 25.44% ($4.01) in trading volume. The company that is known for their electronic products has now revealed that it shall be launching its newest line of products, known as the ‘Eagle’ line, hoping to be unveiled today. It has been rumored that this new product line has already been ordered by numerous popular semiconductor device makers.

It is expected that these new products from the Eagle product line are set to be revealed at the Semicon trade show that is to be held on the 8th of July in San Francisco. These products have been manufactured to maintain the market for ‘Advanced Packaging’.

A “hold” rating has been given to Camtek Ltd. (NASDAQ:CAMT) by the members of TheStreet Ratings group; they have give it a score of C. When asked to elaborate this rating, they said that “hold” rating has been given to the stock for many reasons some of which are due to company’s strengths whereas some are mainly due to its weaknesses. They said that the strong points include Camtek Ltd. (NASDAQ:CAMT)’s revenue growth, financial stability, reduced debt level and sizable net income. The weakness was mainly due to its weak equity returns.

TheStreet Ratings Team gave a detailed account of their analysis, the important features of which include:

-There was a significant increase in the company’s growth in revenue as compared to their average of 2.9%. Since the previous year’s same quarter Camtek Ltd. (NASDAQ:CAMT)’s revenue increased by an impressive figure of 22.3% and consequently, the per share earnings have improved drastically.

-CAMT, as of now, has zero ratio of debt-to-equity. To put this in simple words, CAMT is pretty much debt free.

-During the previous year, share of Camtek Ltd. (NASDAQ:CAMT) have shot up by 38.98% and have even crossed the S&P 500 Index rise during the same time. This is courtesy of the high earnings growth of 166.66% and several other contributing factors. However, it is felt that this stock rise within the past year and other factors that have made this possible have made the company set prices that are much higher as compared to other members of the industry. The conclusion would be that this growth rate is not sustainable for any other investment presently.

-The per share earnings of Camtek Ltd. (NASDAQ:CAMT) have risen considerably in the last quarter as compared to this exact quarter a year ago. In the past year, earnings/share of Camtek Ltd. (NASDAQ:CAMT) have been highly stable and this proves that the company’s management over the earnings and shares is substantial and satisfactory. According to the consensus’s point of view, the trend will continue to go upwards in the following year. In the past financial year, Camtek Ltd. (NASDAQ:CAMT) maintained its EPS at $0.00 same as its previous years. However, this year, an increase from $0.00 to $0.13 is to be expected.

- The company has a slightly better equity return as compared to its same quarter last year. This will come out as a strong point for the company. But Camtek Ltd. (NASDAQ:CAMT) still does not have an impressive equity return as compared to the many different semiconductor and semiconductor equipment companies as well as the S&P 500.

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