10 Oversold Midcap Stocks to Buy Right Now

6. Axcelis Technologies, Inc. (NASDAQ:ACLS)

Forward P/E: 11.06

Analysts Upside Potential as of November 14: 44.24%

Year to date performance as of November 14: -36.08%

Axcelis Technologies, Inc. (NASDAQ:ACLS) is a technology company that designs, manufactures, and services implantation and other processing equipment used in the fabrication of semiconductor chips. The stock has lost about 36.08% in market value year to date. The underperformance has to do with growing concerns about the company’s core business and disappointing financial results.

Axcelis Technologies, Inc. (NASDAQ:ACLS) reported disappointing Q3 results on November 6, 2024, with revenue dropping to $256.56 million and net income falling to $48.58 million. Q3 bookings were $84 million below expectations, leading to a reduced 2024 backlog of $879 million. Despite these results, Axcelis is optimistic about a cyclical recovery in advanced logic and memory markets and expects improvement in the New Year, driven by its involvement in automotive and industrial automation chip production.

After a significant pullback, Axcelis Technologies, Inc. (NASDAQ:ACLS) is trading at a discount with a price-to-earnings multiple of 11.06. Analysts on Wall Street rate the stock as a buy with an average price target of $115, implying a 44.24% upside potential as of November 14, 2024.

Middle Coast Investing stated the following regarding Axcelis Technologies, Inc. (NASDAQ:ACLS) in its Q3 2024 investor letter:

“Axcelis Technologies, Inc. (NASDAQ:ACLS), the semiconductor equipment maker we own in most accounts, is also in transition. Demand for electric vehicles and hybrids has slowed, while demand for memory chips has not yet picked up. Caught in between these cycles, its shares sold off heavily this quarter, and as one of our biggest positions, that hurt our results. It is also a company with a great balance sheet, that has gained share in its sector, and that is exposed to areas of our economy that should grow for years, all while priced relatively cheaply. Micron’s earnings at the end of the quarter suggested the memory recovery is at hand.”