Entegris Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of chip-making materials producer Entegris (Nasdaq: ENTG  ) hit a rough patch earlier this week, but came roaring back today, rising as much as 10.8% on fairly heavy volume.

So what: Thursday's fall was the result of a soft earnings outlook; this bounce comes courtesy of an analyst upgrade. Dougherty had lowered the stock from buy to hold after the last earnings report, but reversed course with a new price target at $11.25 per share, or about 19% above current levels.

Now what: The semiconductor tools sector is full of ultravolatile stocks, several of which are following in Entegris' footsteps today. Ultra Clean Holdings (Nasdaq: UCTT  ) and Mattson Technology (Nasdaq: MTSN  ) both sport beta values north of 2 and have gained nearly 4% today, for example. Assuming that chip builder giants such as Intel (Nasdaq: INTC  ) and Taiwan Semiconductor Manufacturing (NYSE: TSM  ) aren't about to stop their factory buildouts altogether, I see no reason why these stocks couldn't enjoy further gains -- though I'm afraid you missed a terrific buy-in opportunity on Entegris this week.

Interested in more info on Entegris? Add it to your watchlist.