Disco (OTCMKTS:DSCSY) Shares Gap Down - What's Next?

Key Points

• Shares gapped down premarket from $48.70 to an open of $45.875 and last traded around $45.28, with 22,041 shares changing hands, indicating a notable intraday drop.
• Zacks upgraded Disco to a "strong-buy" and the stock's average analyst rating is now "Strong Buy" (two analysts currently give that rating), reflecting bullish analyst sentiment.
• Disco beat quarterly revenue estimates with $848.13M versus $771.53M and reported $0.25 EPS, posting a 30.86% net margin and 25.92% ROE, while trading at a P/E of 56.20 and a market cap of about $48.8B.

Disco Corp (OTCMKTS:DSCSY - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $48.70, but opened at $45.8750. Disco shares last traded at $45.28, with a volume of 22,041 shares changing hands.

Analysts Set New Price Targets

Separately, Zacks Research upgraded shares of Disco from a "hold" rating to a "strong-buy" rating in a research report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, According to data from MarketBeat.com, the company has an average rating of "Strong Buy".

Disco Stock Performance

The company has a market capitalization of $48.77 billion, a P/E ratio of 56.20 and a beta of 1.60. The firm's fifty day moving average is $44.63 and its 200-day moving average is $37.94.

Disco (OTCMKTS:DSCSY - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The company reported $0.25 EPS for the quarter. The company had revenue of $848.13 million for the quarter, compared to analyst estimates of $771.53 million. Disco had a net margin of 30.86% and a return on equity of 25.92%. As a group, analysts expect that Disco Corp will post 0.77 EPS for the current fiscal year.

Disco Company Profile

Disco OTCMKTS: DSCSY is a manufacturer of precision processing equipment and consumables for the semiconductor and electronics industries. The company's product portfolio includes wafer dicing saws, wafer thinning and grinding systems, laser dicing equipment, polishing systems, and diamond blades and wheels, along with associated tooling and process consumables designed for high-precision cutting and surface finishing.

Disco's products are used in critical back-end semiconductor manufacturing steps such as dicing, singulation, thinning, surface preparation and polishing across applications including IC packaging, power devices, LEDs, MEMS and sensors.

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