Here is Why NVMI is a Must-Buy Stock for Growth-Focused Investors

Nova Ltd. NVMI shares have appreciated 11.3% year to date, outperforming the Zacks Computer & Technology sector’s 8.2% decline and the Zacks Electronics - Semiconductors industry’s 12.3% drop.NVMI shares have outperformed industry peers, including Broadcom AVGO, Marvell Technology MRVL and SkyWater Technology SKYT. Over the same period, shares of Broadcom, Marvell Technology and SkyWater Technology have declined 12.6%, 34.7% and 48.3%, respectively.The rise in the share price is driven by NVMI's consistently strong performance over the past few quarters. Revenue growth has benefited from strong sales of the VeraFlex, Elipson and Metrion platforms.NVMI’s Impressive Financial PerformanceNova has a long history of reporting strong quarterly results, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 9.29%.Nova Ltd. Price and Consensus  Nova Ltd. price-consensus-chart | Nova Ltd. QuoteIn the fourth quarter of 2024, the company’s earnings of $1.94 per share jumped 43% year over year and beat the consensus mark by 6.59%. Total revenues rallied 45% to $194.8 million, driven by record sales of materials metrology solutions and increasing adoption across market segments.Revenues from advanced packaging processes more than doubled, contributing 15% to product revenues, indicating strong market demand and successful strategic focus.Nova maintained a robust cash position, with $820 million in cash and equivalents as of Dec. 31, 2024, providing financial flexibility for future investments and operations.Strong Metrology Portfolio Powers Nova’s SuccessNVMI offers a comprehensive metrology portfolio designed to address the intricate demands of semiconductor manufacturing. The company’s solutions encompass dimensional, materials and chemical metrology, ensuring precise process control across various fabrication stages.Nova's Optical Critical Dimension (“OCD”) platforms deliver high-resolution measurements crucial for monitoring semiconductor device dimensions. In fourth-quarter 2024, OCD solutions saw increased market share, driven by strong demand from multiple customers due to their high productivity, precision and unique capabilities. The Nova PRISM platform, in particular, achieved high double-digit year-over-year sales growth, securing multiple engagements across both front-end and advanced packaging applications.In December 2024, NVMI expanded its dimensional metrology capabilities by acquiring Sentronics Metrology GmbH. Sentronics specializes in modular dimensional metrology technology, enabling Nova to diversify its offerings in advanced wafer-level packaging and specialty devices. This acquisition broadens NVMI's reach into applications beyond standard 300mm silicon wafers, enhancing its presence in both back-end and front-end fabrication processes.Nova's Materials Metrology portfolio, including VeraFlex, Elipson and Metrion, achieved record quarterly and annual results. The Metrion platform was adopted by a leading global memory customer for advanced DRAM R&D, and high-volume DRAM and NAND manufacturing.NVMI's Chemical Metrology Solutions, including Nova AncoScene, Nova Acnolyzer and Nova DMR, provide precise chemical composition analysis essential for semiconductor manufacturing. Rising revenues from advanced packaging highlight its growing importance. In January 2025, Nova expanded its capacity by opening a manufacturing and R&D facility in Bad Urach, Germany, strengthening its chemical metrology capabilities.NVMI’s Q1 Outlook Looks OptimisticNova's first-quarter 2025 guidance includes the impacts of its recent acquisition and reflects confidence in sustained growth and market expansion. The acquisition strengthens NVMI's metrology portfolio, enhances its capabilities and broadens its customer base, positioning the company for continued revenue growth and increased market share.For the first quarter of 2025, NVMI expects revenues of $205-$215 million. Non-GAAP earnings are expected between $2.00 and $2.16 per share.The Zacks Consensus Estimate for revenues is pegged at $210.40 million, indicating a year-over-year rise of 48.4%.The consensus mark for earnings is pegged at $2.08 per share, which has moved up 14.9% in the past 30 days. The estimate indicates 49.6% growth from the figure reported in the year-ago quarter.Zacks RankNVMI currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Nova Ltd. (NVMI): Free Stock Analysis Report SkyWater Technology, Inc. (SKYT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks