Sectors & IndustriesTechnologySemiconductor Equipment & Materials

Best Semiconductor Equipment Stocks to Buy Now (2022)

Top semiconductor equipment stocks in 2022 ranked by overall Zen Score. See the best semiconductor equipment stocks to buy now, according to analyst forecasts for the semiconductor equipment & materials industry.

According to Zen Score, the 3 best semiconductor material stocks to buy right now are:

Axcelis Technologies (NASDAQ:ACLS) is the top semiconductor equipment stock with a Zen Score of 74, which is 25 points higher than the semiconductor equipment industry average of 49. It passed 24 out of 33 due diligence checks and has strong fundamentals. Axcelis Technologies has seen its stock return 54.64% over the past year, overperforming other semiconductor equipment stocks by 78 percentage points.

Axcelis Technologies has an average 1 year price target of $83.50, an upside of 22.17% from Axcelis Technologies's current stock price of $68.35.

Axcelis Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Axcelis Technologies, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Photronics (NASDAQ:PLAB) is the second best semiconductor equipment stock with a Zen Score of 69, which is 20 points higher than the semiconductor equipment industry average of 49. It passed 22 out of 33 due diligence checks and has strong fundamentals. Photronics has seen its stock return 68.17% over the past year, overperforming other semiconductor equipment stocks by 91 percentage points.

Photronics has an average 1 year price target of $25.67, an upside of 12.97% from Photronics's current stock price of $22.72.

Photronics stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Photronics, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Kulicke & Soffa Industries (NASDAQ:KLIC) is the third best semiconductor equipment stock with a Zen Score of 65, which is 16 points higher than the semiconductor equipment industry average of 49. It passed 24 out of 38 due diligence checks and has strong fundamentals. Kulicke & Soffa Industries has seen its stock lose -33.45% over the past year, underperforming other semiconductor equipment stocks by -10 percentage points.

Kulicke & Soffa Industries has an average 1 year price target of $50.00, an upside of 8.84% from Kulicke & Soffa Industries's current stock price of $45.94.

Kulicke & Soffa Industries stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Kulicke & Soffa Industries, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 9 semiconductor equipment stocks that have issued dividends in the past year, the 3 semiconductor equipment stocks with the highest dividend yields are:

Asml Holding Nv (NASDAQ:ASML) has an annual dividend yield of 2.08%, which is 1 percentage points higher than the semiconductor equipment industry average of 1.02%. Asml Holding Nv's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Asml Holding Nv's dividend has shown consistent growth over the last 10 years.

Asml Holding Nv's dividend payout ratio of 66.3% indicates that its dividend yield is sustainable for the long-term.

Kulicke & Soffa Industries (NASDAQ:KLIC) has an annual dividend yield of 1.41%, which is the same as the semiconductor equipment industry average of 1.02%. Kulicke & Soffa Industries's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Kulicke & Soffa Industries's dividend has shown consistent growth over the last 10 years.

Kulicke & Soffa Industries's dividend payout ratio of 7.9% indicates that its dividend yield is sustainable for the long-term.

Lam Research (NASDAQ:LRCX) has an annual dividend yield of 1.28%, which is the same as the semiconductor equipment industry average of 1.02%. Lam Research's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Lam Research's dividend has shown consistent growth over the last 10 years.

Lam Research's dividend payout ratio of 18% indicates that its dividend yield is sustainable for the long-term.

Semiconductor equipment stocks were down -6.08% in the last day, and down -4.38% over the last week. Axcelis Technologies was the among the top losers in the semiconductor equipment & materials industry, dropping -9.47% yesterday.

Shares of semiconductor companies are trading lower following weak guidance from Micron. Micron said said its Q4 revenue may come in at or below the low end of its guidance range provided in its June earnings call.

Based on WallStreetZen's Valuation Score, the 3 most undervalued semiconductor equipment stocks right now are:

Ultra Clean Holdings (NASDAQ:UCTT) is the most undervalued semiconductor equipment stock based on WallStreetZen's Valuation Score. Ultra Clean Holdings has a valuation score of 100, which is 46 points higher than the semiconductor equipment industry average of 54. It passed 7 out of 7 valuation due diligence checks.

Ultra Clean Holdings's stock has dropped -35.35% in the past year. It has underperformed other stocks in the semiconductor equipment industry by -12 percentage points.

Cohu (NASDAQ:COHU) is the second most undervalued semiconductor equipment stock based on WallStreetZen's Valuation Score. Cohu has a valuation score of 100, which is 46 points higher than the semiconductor equipment industry average of 54. It passed 7 out of 7 valuation due diligence checks.

Cohu's stock has dropped -21.33% in the past year. It has overperformed other stocks in the semiconductor equipment industry by 2 percentage points.

Ichor Holdings (NASDAQ:ICHR) is the third most undervalued semiconductor equipment stock based on WallStreetZen's Valuation Score. Ichor Holdings has a valuation score of 86, which is 32 points higher than the semiconductor equipment industry average of 54. It passed 6 out of 7 valuation due diligence checks.

Ichor Holdings's stock has dropped -36.87% in the past year. It has underperformed other stocks in the semiconductor equipment industry by -14 percentage points.