A 5-Day Winning Streak Has Entegris Stock Up 25%
Shares of Entegris (ENTG) have closed higher in each of the last 5 sessions, a cumulative gain of 24.8%. That added about $4.9 billion to the company’s market value, which now stands at about $24.4 billion. The stock closed at $160.00 on Thursday, October 29, 12.9% below its 52-week high of $183.72 and 133.3% above its low of $68.59.
ENTG Versus The S&P 500
Returns for ENTG and the S&P 500 over the streak and the periods around it, all ending Thursday, October 29 and including dividends:
| Return Period | ENTG | S&P 500 |
|---|---|---|
| 1 Day | 0.4% | -0.3% |
| 5 Days (Current Streak) | 24.8% | 0.8% |
| 1 Month (21 Trading Days) | 3.9% | 1.0% |
| 3 Months (63 Trading Days) | 34.5% | 3.3% |
| Year To Date | 90.5% | 13.8% |
| 1 Year (252 Trading Days) | 75.2% | 13.3% |
Is This Move About Entegris Or The Market?
The market explains little of this: the S&P 500 gained 0.8% over the same 5 sessions, including dividends, against Entegris’ +24.8%. Over the past three months the stock is up 34.5%, a window that includes the streak; over the other 58 sessions of that window it was up 7.8%.
Do The Fundamentals Support The Run?
On the fundamentals, revenue grew 3.2% over the last twelve months, against a median of 18.4% for S&P 500 Information Technology stocks; its operating margin is 29.9%, versus a median of 21.6%; and the stock trades at 80.0 times trailing earnings against a median of 33.4. The numbers make the run harder to justify: revenue growth below the median and a multiple well above the median. At this price, the stock is asking a lot of the business.
If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.
For anyone who would rather back the theme than one company, a semiconductor ETF like SOXX holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.