Alert: Negative Investment/Fundamental Signals (12/3/19)-Cabot Microelectronics Corp (NASDAQ: CCMP)


Cabot Microelectronics Corp (NASDAQ: CCMP) has recently experienced extremely important negative changes in investment behavior: the stock’s recent price decline challenged its longer term uptrend, and the stock fell on very heavy volume.

Cabot Microelectronics Corp (NASDAQ: CCMP). Important negative changes in fundamentals have recently occurred. Negative developments: the consensus estimate for September, 2020 decreased significantly, significant quarterly earnings deceleration occurred, and the consensus estimate for September, 2021 decreased significantly. Positive development: significant quarterly sales acceleration occurred.

In light of these highly negative signals we are reviewing our current Overall Rating of A. We would view the shares with caution pending completion of this review in the next several days.


Current PriceTarget Research Rating

CCMP’s future returns on capital are forecasted to exceed the cost of capital. Accordingly, the company is expected to continue to be a Value Builder.

Cabot Micro has a current Value Trend Rating of A (Highest Rating). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing consistent signals. Cabot Micro has a slightly positive Appreciation Score of 64 and a good Power Rating of 84, resulting in the Highest Value Trend Rating.

Recent Price Action

On 12/3/19, Cabot Microelectronics Corp (NASDAQ: CCMP) stock suffered a very large decline of -6.7%, closing at $123.39. Moreover, exceptionally high trading volume at 361% of normal accompanied the decline. The stock has been exceptionally strong relative to the market over the last nine months but has declined -3.9% during the last week.

About John Lafferty 79039 Articles
During his career, John has developed valuation and stock rating methodologies, managed institutional portfolios and mutual funds, and provided equity research to institutional investors on thousands of companies. He has been Director of Research at PTR since its inception in 2004.

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