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This Semiconductor Stock Has Gained More Than 425% in the Past Year

  • AXT Inc. (AXTI) has strong technical momentum and is trading at a new three-year high.
  • Shares are up 428% over the past 52 weeks and 125% in just the last month.
  • The stock maintains a 100% “Buy” opinion from Barchart.
  • Despite bullish analyst sentiment and strong technicals, this stock is volatile. 

Today’s Featured Stock

Valued at $506 million, AXT Inc. (AXTI) designs, develops, manufactures, and distributes high-performance compound semiconductor substrates, as well as opto-electronic semiconductor devices such as high-brightness light emitting devices, and vertical cavity surface emitting lasers.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AXTI checks those boxes. Since the Trend Seeker signaled a new “Buy” on Oct. 21, the stock has gained 98.45%.

 

www.barchart.com

Barchart Technical Indicators for AXT Inc.

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Axt Inc. hit a three-year high of $11.88 in intraday trading on Nov. 12.

  • AXTI has a Weighted Alpha of +513.02.
  • Axt Inc. has a 100% “Buy” opinion from Barchart.
  • The stock gained 428.06% over the past year.
  • AXTI has its Trend Seeker “Buy” signal intact.
  • The stock recently traded at $10.15 with a 50-day moving average of $5.69.
  • Axt Inc. has made 15 new highs and gained 125% in the last month.
  • Relative Strength Index (RSI) is at 74.06.
  • There’s a technical support level around $10.32.

Don’t Forget the Fundamentals

  • $506 million market capitalization.
  • Revenue is projected to grow 32.3% next year.
  • Earnings are estimated to increase 100.53% next year.

Analyst and Investor Sentiment on AXT Inc.

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street and individual investors like this stock.

  • The Wall Street analysts tracked by Barchart have issued 4 “Strong Buys,” 1 “Moderate Buy,” and 1 “Hold” opinion on the stock with price targets between $8.50 and $10.00.
  • Value Line rate the stock “Above Average.”
  • CFRA’s MarketScope Advisor rates it a “Sell.”
  • Morningstar thinks even with the stock’s recent runup, it’s only 15% overvalued.
  • 1,083 investors following the stock on Motley Fool think it will beat the market while 78 think it won't.
  • 5,380 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line on AXT Inc.

All tech stocks are speculative and volatile as is AXTI. It has begun to have a following and just might be the real deal.

Today’s Chart of the Day was written by Jim Van MeertenRead previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.


On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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