Bargain hunters have an opportunity to see enormous gains by targeting 52-week losers. At the same time, speculating in this arena requires careful thought and analysis. After all, there’s usually a fundamental reason why a security becomes one of the biggest losers — and it’s probably not a good one.
Investors willing to accept significant risk in exchange for the possibility of significant upside may consider Entegris (NASDAQ:ENTG). A supplier of materials for the semiconductor and other high-tech industries, Entegris plays a vital backend role for the broader technology ecosystem. Specifically, the company specializes in improving contamination control in several key processes, including photolithography and chemical-mechanical planarization.
Despite its relevance, ENTG stock has struggled badly. In the past one-year period, the security lost more than 43% of equity value. Since the beginning of 2025, ENTG lost almost 28%. Under ordinary circumstances, most experts in the financial publication industry would likely suggest that investors shouldn’t attempt to catch a falling knife.
It sounds like reasonable advice and yeah, most people should heed it. Again, a publicly traded enterprise doesn’t just lose 28% out of the blue. There are serious problems here.
At the same time, a compelling quantitative signal materialized that should give traders food for thought. In the past two months, ENTG printed a 3-7-D market breadth sequence: three up weeks, seven down weeks, with a net negative trajectory across the 10-week period.
Notably, in 70.37% of cases, the following week’s price action results in upside, with a median return of 5.18%. Based off Friday’s close of $68.74, ENTG is theoretically projected to hit $72.30, which is a realistic figure given the recent lift in the security. Still, that’s not the only catalyst undergirding the tech play.
Thanks to the recent surge in ENTG stock, the security is on pace to deliver a strong performance for this week. If the momentum holds true, ENTG would end up printing a 4-6-D sequence: four up weeks, six down weeks, with a net negative trajectory across the period.
In this particular case, the following week’s price action results in upside 55.56% of the time, with a median return of 4.35%. As such, if ENTG closes at the current price of $71.81 for the week, the bulls could attempt to push the price toward the $75 level.
It’s worth pointing out that, as a baseline, the chance that a long position in ENTG stock will be profitable over any given week is 52.94%. So, whether we’re talking about the 3-7-D formation or the 6-4-D, both patterns offer odds that are statistically favorable compared to the baseline.
To be sure, market breadth is not a typical methodology that you find in the financial publication industry. However, it arguably represents the key to sound empirical analysis because it forces data stationarity. Scalar metrics such as price or revenue frequently fluctuate across time and sentiment regimes. In contrast, market breadth is really demand — and demand is a binary construct.
It’s either happening or it’s not, meaning that current demand profiles to one ten years ago are both speaking the same mathematical language. That’s usually not the case when it comes to scalar metrics like share price, which can deviate significantly over a decade.
Those who want to play the numbers game may want to explore the idea of the 72.50/75 bull call spread expiring June 20. This transaction requires a net debit of $130, but would deliver a payout of $120 (or 92.31%) should ENTG stock rise through the short strike price at expiration.
As explained earlier, there’s a legitimate case for this thesis.
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