What Happened?
Shares of semiconductor materials supplier Entegris (NASDAQ: ENTG) fell 9% in the morning session after the company's fourth-quarter guidance fell short of expectations. Following its third-quarter results, Entegris announced that it expected adjusted earnings for the fourth quarter to be $0.66 per share at the midpoint, below the $0.76 analysts anticipated. The company also projected revenue of $810 million at the midpoint, which was also below the consensus estimate of $826.9 million. This weaker-than-expected financial outlook appeared to trigger the negative investor reaction and subsequent sell-off in the stock.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Entegris? Access our full analysis report here.
What Is The Market Telling Us
Entegris’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 9.5% on the news that investor fears eased as President Trump softened his tone regarding trade relations with China. Following a sharp selloff late last week fueled by threats of an additional 100% tariff on Chinese goods, the president's more conciliatory weekend message that "it will all be fine" sparked a broad market rally. The semiconductor sector, which is particularly sensitive to international trade policies due to its global supply chains, was among the biggest beneficiaries of the improved sentiment. Chipmakers had posted significant declines during the previous week amid escalating tariff concerns. The reversal in tone helped these stocks recover a substantial portion of their recent losses as investors bought back into the sector, relieved that trade tensions might not escalate further.
Entegris is down 10.6% since the beginning of the year, and at $86.96 per share, it is trading 21.3% below its 52-week high of $110.51 from December 2024. Investors who bought $1,000 worth of Entegris’s shares 5 years ago would now be looking at an investment worth $1,163.
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