Margin Breakdown
0.16
Operating Profit Margin
0.32
Gross Profit Margin
0.2
Pretax Profit Margin
| Pretax Profit Margin | 0.2 | |
| Operating Profit Margin | 0.16 | |
| Net Profit Margin | 0.53 | |
| Gross Profit Margin | 0.32 |
What are the projections for Aehr Test (USA Stocks:AEHR) to recover in November 2024?
 | By Rifka Kats | Macroaxis Story |
Aehr Test Systems has a beta of 3.70, indicating its stock is quite volatile. When the market rises, Aehr Test is likely to see even greater gains. Conversely, if the market dips, the stock may experience sharper declines. This beta value helps investors gauge how Aehr Test's stock moves relative to the market and assess its risk level. A high beta suggests that while the stock can boost potential returns, it also introduces more risk to a portfolio. If Aehr Test's movements closely mirror the market, it doesn't significantly alter the portfolio's risk or return profile.
Important Highlights
Considering Aehr Test Systems' current quote of 13.23 and a Wall Street target price of 25, the stock presents a potential upside of 8.7%, making it an attractive option for investors seeking growth in the semiconductor equipment sector. Despite a high PEG ratio of 5.92, which suggests the stock might be overvalued, the promising target price indicates room for significant appreciation.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
Strike while the iron is hot, especially when it comes to considering Aehr Test Systems as a potential investment this November. Positioned within the dynamic semiconductor equipment and materials sector, Aehr Test Systems offers a compelling opportunity for investors with its stock currently trading below its 50-day moving average of $13.58. The company's projected earnings per share for the current year stand at $0.47, with an anticipated increase to $0.30 next year, suggesting a positive growth trajectory. Analysts have set target prices ranging from $54.60 to $66.60, significantly higher than the current levels, indicating substantial upside potential. With a price-to-earnings ratio of 11.81, the stock appears undervalued, making it an attractive choice for those looking to capitalize on growth in the semiconductor industry. While the short interest is relatively high at 17.92%, the overall analyst consensus leans towards a buy, reinforcing the notion that Aehr Test Systems could be a smart addition to your portfolio. Currently, Aehr Test Systems' capital expenditures relative to depreciation remain steady compared to last year. By October 10, 2024, the enterprise value to sales ratio is expected to rise to 4.58, while the book value per share might decrease to 2.56. This analysis aims to provide retail investors with insights into Aehr's potential future value and explore why it could significantly impact their investment strategy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Aehr Test. Your research has to be compared to or analyzed against Aehr Test's peers to derive any actionable benefits. When done correctly, Aehr Test's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Aehr Test Systems.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Aehr Test Systems. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Aehr Test
How important is Aehr Test's Liquidity
Aehr Test financial leverage refers to using borrowed capital as a funding source to finance Aehr Test Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aehr Test financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Aehr Test's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Aehr Test's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Aehr Test's total debt and its cash.
Aehr Test Gross Profit
Aehr Test Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Aehr Test previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Aehr Test Gross Profit growth over the last 10 years. Please check Aehr Test's gross profit and other fundamental indicators for more details.
What is the case for Aehr Test Investors
Aehr Test Systems is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aehr Test's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Aehr Test's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
Warren Buffett once said, "Price is what you pay. Value is what you get." This sentiment rings true for Aehr Test Systems (AEHR) as we look into November. With a PE ratio of 11.81, the stock appears attractively priced relative to its earnings potential, especially in the competitive Semiconductor Equipment & Materials industry. The company's robust net income of $33.16 million and a low debt-to-equity ratio of 0.01% suggest a solid financial footing, making it a compelling choice for investors seeking value. Additionally, with a Wall Street target price of $25, there is a significant potential upside from its current levels, offering an enticing opportunity for those looking to capitalize on growth in the semiconductor sector..
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