FormFactor a Chip Stock for 2020

FormFactor FormFactor Inc. (NASDAQ: FORM) is a technology company that develops devices used to test microprocessor wafers and other devices. It’s a strong pick moving deeper into 2020, thanks to upbeat earnings forecasts for the holiday quarter.

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Analysts expect FormFactor to generate close to $174 million from the holiday quarter, with earnings at $0.31 per share. This is a strong improvement over the $0.26 per share that was estimated two months ago. The chip sector is performing well in 2020, which is helping to drive analyst confidence.

If the company is able to meet expectations when it reports on Wednesday, it will be a strong signal that the previous fiscal year is being turned around. 2018 came with a -3.42% decline in revenue, after strong growth in 2016 and 2017. Even though financials declined in the previous fiscal year, the gross profit margin remains incredibly strong at 38.04%.

The average target suggests a moderate upside on this stock with a price of $26.03. There is also some expectation that the stock will see more activity once the Corona Virus has been contained. There’s speculation in this pick, but a strong tech sector could see it becoming a great performer this year.

Key Data:

  • 1 Year Price Growth: 75%
  • YTD Price Growth: -2.54%
  • 3 Month Price Growth: 65%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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