Nanometrics Incorporated (NANO) is scheduled to report on Tuesday, February 05 2019 according to a press release issued on January 15, 2019. With a forward price-earnings (P/E) multiple of 13.88 times, the stock which trades at the market closing price of US$30.67 as of January 25, 2019, remains competitively valued with the consensus estimates of average earnings per share of US$2.25 per share, and total revenues of US$320.15 million for the full-year ending December 31 2018.
How are the price charts looking for NANO?
The stock was last traded on January 25, 2019 at US$30.67, up US$1.66 or 5.72 per cent intraday. At the current price, the stock has punched above the 50-day simple moving average (SMA) line at US$29.22, and the next short-to-intermediate resistance level is US$31.86 which is the 100-day SMA denoted by the dark blue line on the chart shown above.
However, should it failed to push upwards the 100-day SMA level, we expect the stock price to fall to US$25.00. It the stock price does break above the US$31.86 resistance level, we think the stock will move to a intermediate-to-long-term stock price target of US$34.56 which is the 200-day SMA denoted by the orange line on the chart above.
According to data provided by Yahoo! Finance, we noted that earnings expectations remain high with 2 analysts among the four that were surveyed indicating a “Strong Buy” rating, while one analyst each has a recommendation of “Buy”, and “Hold” respectively. There were no analysts rating the stock with a “Sell” rating and below. The average one-year expected price target is US$37.67.
What are our thoughts on the fundamentals of NANO?
While we are not in the position of providing any specific stock recommendations, we noted that the stock price which trades at a forward P/E ratio of between 13 to 14 is neither cheap or expensive. However, with the rising interest rate expectations, coupled with a general slowdown in the world economy, we think that investors might need to examine closely the overall earnings fundamentals with the anticipated slower earnings growth expectations.
However, we also recognised that nanotechnology is still a new scientific concept that has started to gain prominence, we think that investors have yet fully embraced how nanotechnology will be applied into everyday usage. At this stage, we think that growth expectations are quite high and unlike other industries, the industry is starting to gain prominence and acceptance.