|Bid||49.24 x 3000|
|Ask||49.24 x 2200|
|Day's Range||48.69 - 49.38|
|52 Week Range||42.04 - 57.60|
|Beta (3Y Monthly)||0.76|
|PE Ratio (TTM)||15.39|
|Earnings Date||Jan 24, 2019|
|Forward Dividend & Yield||1.20 (2.48%)|
|1y Target Est||54.58|
Intel Corp operates mostly outside the Apple-sphere, and that is exactly why whatever it says next week about business in its vital Chinese market matters so much for investors. Apple rattled global markets this month when the iPhone maker cut its revenue outlook for the first time in 15 years, blaming factors like the U.S.-China trade dispute and a slowdown in the Chinese economy. Upcoming quarterly scorecards from Intel, Texas Instruments and other chipmakers, as well as Ford Motor, will shed light on whether Apple made a convenient excuse for its own troubles or revealed a strengthening headwind faced by global companies that rely on China for a big chunk of their sales.
Here's What Elon Musk Said to Fired Tesla EmployeesTesla stock January 18 is turning out to be a terrible day for Tesla (TSLA) investors. At 10:21 AM EST, the stock was trading at $313.22, down 9.8% from its previous day’s closing price. These
Elon Musk’s Big Announcement on Tesla: All You Need to KnowTeslaThis morning, Tesla (TSLA) made a big announcement that is likely to make its stock highly volatile today and in the next few days as well. The company’s CEO, Elon Musk, announced
Why Tesla Stock Fell More than 8% on January 18Tesla stock fell At 6:46 AM EST on January 18, Tesla (TSLA) shares fell 8.4% in the pre-market session from the previous day’s closing. The losses came after CEO Elon Musk made a big announcement
TSMC has been making Intel’s life difficult lately, so a small reprieve is welcome—even if it is to be short-lived. Company pulled ahead of Intel last year in production technology used to shrink the size of microprocessors. TSMC also is producing the latest line of server processors for Advanced Micro Devices that will compete directly with Intel in this key market.
Chipmaker Advanced Micro Devices (NASDAQ:AMD) was the top-performing stock in the S&P 500 for 2018. In calendar 2018, AMD stock rose 80%, versus a 6% drop for the S&P 500. That is impressive in and of itself, but next to the performance of its chipmaker peers, it's especially impressive. While AMD stock rose 80% in 2018, Intel (NASDAQ:INTC) rose just 1%, while Nvidia (NASDAQ:NVDA) dropped 30%. In other words, AMD stock generated 110 points of alpha over former industry favorite Nvidia in 2018. Can this run continue? Will AMD stock be a top performer yet again in 2019? InvestorPlace - Stock Market News, Stock Advice & Trading Tips It's certainly possible. The same tailwinds which pushed AMD stock higher in 2018 remain intact today. The valuation is reasonable under realistic growth assumptions, the growth trajectory remains promising, and the company's size relative to its addressable market implies further upside. There are also M&A rumors on the table. Overall, there are reasons to believe that AMD stock is set have another big year. Will it be another 80% gain? Probably not. But, so long as certain tailwinds remain in play, AMD stock should have another strong showing in 2019. * 7 Stocks to Buy as the Dollar Weakens With that in mind, let's take a look at five reasons to buy AMD stock in the new year. ### Server Market Share Gains Source: Shutterstock For as long as most investors can remember, the CPU server market has been dominated by Intel. As recently as last year, Intel controlled roughly 99% of this market. But there are signs that this is changing. AMD has made a big push into the CPU server market with its EPYC chips. Estimates for how much server market share AMD has gained through EPYC most normally come in around 5%, or in the mid-single-digit range. With the launch of new 7nm EPYC Rome chips, AMD projects to keep stealing share from Intel in 2019. Many industry analysts and insiders see AMD's share rising from 5% in 2018, to 10% or higher in 2019. This is an extremely valuable market supported by secular growth trends in AI and data. If AMD can continue to grow share in this market, not only does that boost present-day financials, but it also adds visibility and firepower to the long-term growth trajectory. That is a winning combination which usually leads to a winning stock. ### GPU Market Share Gains Source: HP AMD isn't just stealing CPU market share from Intel. The company is also stealing GPU market share from Nvidia, too. AMD has been steadily gaining GPU market share through its Ryzen and Radeon products. Notably, AMD just scored a big win when cloud giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) announced that its huge cloud gaming project would use AMD's Radeon GPUs. Also, a recent CES Keynote presentation included a much-heavier-than-expected focus on GPUs, and the consensus media belief coming out of that event is that AMD has enough GPU firepower to continue competing with Nvidia. * 10 Growth Stocks With the Future Written All Over Them Much like the server market, this, too, is a very valuable market supported by secular growth trends in AI and visualization. If AMD can continue to grow share in this market, this will provide a double tailwind thanks to boosted near- and long-term fundamentals. That combination could power AMD stock higher in 2019. ### Potential Acquisition Target Source: Shutterstock The EE Times recently reported that rumors regarding a potential Intel acquisition of AMD were circulating at CES this year. The rationale behind these M&A rumors is pretty simple. AMD is David, and David is all of the sudden becoming an increasingly large threat to Goliath (Intel). Goliath can't easily squash David anymore, so why not join forces? Intel has the resources to do it. They also don't have a CEO, while AMD has a very well respected CEO. This acquisition likely won't happen. These two companies have a tumultuous history marked by persistent competition. Also, the FTC would likely never allow this to happen. Nonetheless, M&A rumors normally don't begin and end with one potential suitor. Throughout 2019, given AMD's relatively small size and huge growth potential, there could be multiple M&A rumors that arise, some of which may actually have some credibility and provide a nice boost to AMD stock. ### Small Company Attacking Big Markets Source: Shutterstock The long-term growth potential of AMD stock is quite promising considering you have a relatively small company rapidly gaining share in some huge markets. Just consider this. AMD has a market cap of about $20 billion. Nvidia is a $92 billion company. Intel is a $220 billion company. Thus, the combined size of Intel and Nvidia is over $310 billion, meaning AMD is presently about 6% as big as its potential opportunity. * 10 A-Rated Stocks the Smart Money Is Piling Into So long as AMD continues to rapidly steal share away from both Intel and Nvidia, investors will increasingly see the gap in valuation between AMD stock and Nvidia and Intel stocks as nonsensical. That will attract buyers and push AMD stock higher. ### $2 EPS Is Achievable At the end of the day, it always comes back to the fundamentals for stocks. The fundamentals for AMD stock are that this is a small company attacking big markets and successfully growing share in those markets. There are question marks surrounding the sustainability of those share gains, but if they persist, this will remain a double-digit revenue growth company with healthy margin drivers for the next five-plus years. If AMD does remain a double-digit growth company, then $2 in EPS looks achievable by fiscal 2023. A growth average 20 forward multiple on that implies a fiscal 2022 price target of $40. Thus, this is a stock which could reasonably double within the next four to five years. As of this writing, Luke Lango was long INTC and NVDA. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post 5 Reasons to Buy AMD Stock appeared first on InvestorPlace.
What Memory Industry Downturn Could Mean to Micron Investors(Continued from Prior Part)Micron to acquire Intel’s stake in IMFT joint venture Micron Technology (MU) has been hit by the memory industry downturn, as memory supply has risen while the
What Memory Industry Downturn Could Mean to Micron InvestorsMicron’s stock price movement Memory stock prices recorded significant movement near the beginning of the year. Stocks of memory chipmakers Micron Technology (MU) and Western Digital
Intel (INTC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Apple (NASDAQ:AAPL) cannot escape the negative sentiment surrounding its iPhone. The company began the year on news of an iPhone-induced revenue miss and a 7.5% decline in Apple stock. It won one of its court cases against Qualcomm (NASDAQ:QCOM) regarding their ongoing patent dispute. However, the company has seen little else to celebrate as iPhone revenues continue to take a beating. Still, amid the bad news, investors should remember that AAPL stock holds the largest cash hoard in corporate America. Even if AAPL languishes in the near term, the recent decline should eventually become a lucrative buying opportunity as the company works to replace lost iPhone revenues. ### Apple Stock Finally Received Some Good News News regarding the iPhone and rumors that Intel (NASDAQ:INTC) has pursued its SVP of hardware development has dominated the headlines on Apple stock recently. Still, AAPL got something it has not received in a while -- good news. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A court in Germany dismissed a patent suit against Apple by Qualcomm. The court ruled Apple had not infringed on Qualcomm patents. This represents the first win for Apple in a series of patent suits Apple launched against Qualcomm in many countries. * Top 10 Global Stock Ideas for 2019 From RBC Capital Although this boosts morale for Apple, it does not change the fact that the Apple-Qualcomm relationship has suffered irreparable damage. Apple has moved on and produces its latest iPhone models without Qualcomm chips. Hence, I question whether this will have a lasting effect on Apple stock. ### Lower iPhone Revenues Could Become Permanent It also does not change the fact that AAPL stock will probably have to adjust to the reality of lower iPhone revenues. The iPhone accounted for over 59.1% of Apple's sales in the fourth quarter. This means Apple's fortunes rise and fall with the iPhone. The recent revenue miss also hints at what will likely come. Moreover, as my colleague Brad Moon points out, "batterygate" could have contributed to this decline. More customers than expected rushed to take advantage of $29 battery replacements, delaying the need for a new iPhone. Still, that may have actually kept more customers in Apple's iOS ecosystem. Yes, aging phones and the rise of 5G will eventually force some future upgrades. However, consumers can now find unlocked phones for a much lower cost in the Android ecosystem. Sometimes, these phones sell in the $200 range for a company's latest release. The lowest-cost model of the newest iPhone costs no less than $749. Many higher-end models retail for over $1,000. Given that cost differential, one has to expect that Apple will lose more iPhone users in the coming years. ### Do Not Count Apple Stock Out Yet Despite this decline, investors should also remember that few companies have more ability to redefine themselves than Apple. The company's $237 billion in cash creates numerous options. If Apple cannot invent its next revenue source, it can buy it. Former CEO John Sculley believes that Apple will become a gamechanger in the healthcare industry. Its advances with the Apple Watch point in that direction. Whatever the source, cash-rich companies such as archrival Microsoft (NASDAQ:MSFT) have shown an ability to come back after sales fell in their core product. One has to assume Apple can engineer a similar comeback amid an iPhone revenue decline. Apple stock has also reached a compelling multiple. The price-to-earnings (P/E) ratio stands at just over 12.8. Looking back over the past ten years, the average annual P/E has never fallen below 11.4. That low might explain why Apple bounced off of the $142-per-share low it saw on Jan. 3. In the two weeks since that time, Apple stock has risen by about 9%. Time will tell if that low forms a more permanent bottom. However, for now, AAPL has stopped falling. If healthcare or another business turns into a revenue catalyst, AAPL stock should return to growth mode. ### The Bottom Line on Apple Stock Apple stock has dealt with declining revenues in its core product in recent months. However, Apple's ability to reinvent itself could ultimately rescue AAPL. Yes, winning one lawsuit against Qualcomm boosts morale. However, it does not change the fact that falling iPhone revenues have severely damaged Apple. Although AAPL stock bounced off of a recent low, the company may struggle to gain traction in the near term. * 7 Best ETFs for Novice Investors However, the P/E ratio of Apple stock has begun to flirt with multi-year lows. The company also holds the largest cash position in corporate America, giving the company numerous options. AAPL could languish for some time to come. Still, with its low multiple and its large cash position, Apple stock has become a buying opportunity in need of a catalyst. Investors should treat it as such. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post Apple Stock Needs to Declare Independence From iPhone Dependence appeared first on InvestorPlace.
Wall Street's main indexes were set to retreat from one-month highs on Thursday, hit by Morgan Stanley's weak results and renewed concerns over the progress of Sino-U.S. trade talks. Shares of the Wall Street investment bank tumbled 4.3 percent after reporting a lower-than-expected quarterly profit as increased volatility at the end of the fourth quarter hurt its fixed income trading. Sentiment was already weak after U.S. lawmakers introduced bills on Wednesday to ban the sale of U.S. chips or other components to Huawei Technologies Co Ltd or other Chinese telecoms firms that violate U.S. sanctions or export control laws.
# Intel Corp ### NASDAQ/NGS:INTC View full report here! ## Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate ## Bearish sentiment Short interest | Positive Short interest is extremely low for INTC with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting INTC. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The $7.60 billion in inflows that ETFs holding INTC received over the last one-month is a decline from earlier in the period and among the weakest of the past year. ## Economic sentiment PMI by IHS Markit | Negative According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator. INTC credit default swap spreads are at their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Chip giant Intel (INTC) is coming off a strong third quarter and its Q4 outlook appears solid ahead of next Thursday's earnings release. Despite INTC's recent climb, along with giants like Amazon (AMZN) and Google (GOOGL), shares of Intel still sit solidly below their 52-week high.
As the U.S. and China continue talks, investors may look to the pommeled semiconductor-sector ETFs if the negotiations pull through. BlackRock Chairman and CEO Larry Fink told CNBC on Wednesday there would ...
Semiconductor stocks have been battered by recent market-wide volatility, but buying opportunities are still present as valuations become more attractive and secular growth trends remain. Check out these Zacks buy-ranked semiconductor stocks right now!
After former CEO Brian Krzanich parted ways with the chipmaker in June 2018, following allegations of an inappropriate relationship with an employee, Intel appointed CFO Bob Swan to take the reins on an interim basis. According to a Bloomberg report, Intel is aiming to appoint a new CEO before its next earnings report on Jan. 24. Meanwhile, as reported by RealMoney's Kevin Curran, shareholders are urging the chipmaker to find a strong leader soon, and debating whether that executive should come from inside or outside Intel.
Markets are volatile right now. Due to concerns regarding a looming U.S. recession, fears surrounding the Federal Reserve's rate hike trajectory and uncertainty with respect to U.S.-China trade talks, investors have taken an increasingly cautious approach to equities over the past several months. As they have, volatility has spiked, and wild swings in stocks have become the norm. Amid all this volatility, it's good to find some stability. Stability can come in two forms in the equities market. You could have a defensive stock with stable ongoing operations that are largely resilient no matter the macroeconomic conditions. Or, you could have a really cheap stock that investors won't push down further because it has already been pushed down far enough. In this gallery, we will look at that second class of stocks. Specifically, we will look at single-digit P/E stocks that are so cheap, them falling further seems almost impossible. Yet, if just one little positive catalyst arrives, these single-digit P/E stocks could rally in a big way. As such, these stocks are classified as ones with mitigated downside potential, but huge upside potential. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks With Growth on the Horizon With that in mind, let's take look at six single-digit P/E stocks that look ready to turn a corner and rally in a big way. ### GameStop (GME) Source: Shutterstock Forward P/E Multiple: 6.1 Video game retailer GameStop (NYSE:GME) has been decimated on Wall Street over the past several years as the company's operations have become increasingly less relevant due to the growing popularity of video game downloads. Pretty much everyone sees this company as going the way of Blockbuster, and ultimately heading for the exits within the next decade. Yet, there's one profitable way out for GME shareholders: a private equity buyout. Sure, it seems silly, but it might just happen. Although GameStop is heading for the graveyard, it will produce a lot of cash flow on its way there, and with the stock so cheap (only 6X forward earnings), a private equity firm can come in a buy the company and earn healthy ROI through a few good years of cash flow production. If this takeout does happen, it will likely happen around $20 per share, implying healthy upside potential for GME stock. ### Single Digit P/E Stocks: AT&T (T) Source: Shutterstock Forward P/E Multiple: 8.6 Although telecom giants are usually seen as a beacon of stability and a defensive play for investors during turbulent times, the opposite has been true for AT&T (NYSE:T). AT&T stock has dropped in a big way with the rest of the market, mostly because the big concern hitting the markets (the threat of the Fed rising rates too fast) is a big worry for AT&T, too. Due to multiple recent acquisitions, AT&T's balance sheet is loaded up with debt. The higher rates go, the more that balance sheet is pressured, and the more investors shun the stock. But that big threat is moving into the rearview mirror in 2019. Multiple Fed members have come out and voiced dovish opinions regarding the rate hike path in 2019. Even Fed Chairman Jerome Powell implied that multiple further rate hikes are unlikely. * 10 Growth Stocks With the Future Written All Over Them With this headwind being left in 2018, shareholders are left with an AT&T stock that is trading at a dirt-cheap valuation (8.6X forward earnings) with a big yield (6.6%) and strong earnings power through stable telecom and media-related operations. That's an attractive combination that will bring in multiple buyers, so long as the Fed stays on the sidelines. ### Dick's Sporting Goods (DKS) Source: Shutterstock Forward P/E Multiple: 9.9 The brick-and-mortar retail sector has been stung over the past several years due to the rapid rise of e-commerce. One of the retailers feeling the sting most is Dick's Sporting Goods (NYSE:DKS). In addition to a secular shift towards e-commerce, Dick's is being hurt by athletic apparel brands increasingly emphasizing direct sales, meaning more product sold directly through Nike (NYSE:NKE) or Adidas (OTCMKTS:ADDYY), and less product sold through Dick's. If this trend continues, that essentially means lower sales into perpetuity. These concerns, however, seem overblown. This shift from wholesale to direct in the athletic apparel world is happening. But, it's happening mostly at lower tier players like Big Five Sporting Goods (NASDAQ:BGFV), not at Dick's. Due to its size and branding, Dick's is still seen as a valuable wholesale partner in the athletic apparel world. As such, concerns about this middle man getting axed are overblown. As operations improve in 2019 due to easy laps, single-digit P/E stock DKS should roar higher. ### IBM (IBM) Source: Shutterstock Forward P/E Multiple: 8.8 Blue-chip technology giant IBM (NYSE:IBM) has had a rough run over the past several years. The company's revenue growth profile has been persistently weak, and healthy growth in the cloud business has been unable to consistently offset declines in the legacy business. Margins have struggled. Earnings haven't gone anywhere. Debt is piling up. As such, the stock has struggled. But, a big acquisition of hyper-growth hybrid cloud company Red Hat (NYSE:RHT) could change all of that. Red Hat is a double-digit revenue grower with 85%-plus gross margins and 20%-plus operating margins. IBM, by contrast, is a flat revenue growth company with 50% gross margins and almost 20% pre-tax margins. Thus, at scale, Red Hat should super-charge revenue growth and be materially additive to margins. * 10 A-Rated Stocks the Smart Money Is Piling Into If so, earnings growth will turn a corner. If it does, investors will realize this stock is way too cheap at 8.8X forward earnings and with a 5%-plus yield, and the stock will normalize significantly higher. ### Micron (MU) Source: Shutterstock Forward P/E Multiple: 4.8 Concerns regarding a global semiconductor industry slowdown have killed shares of memory chipmaker Micron (NASDAQ:MU) over the past several months. At its core, the growth narrative at Micron is all about supply and demand. When demand is high and supply is low, chip prices are high, margins are high, and profits are big. When demand is low and supply is high, chip prices are low, margins are low and profits are nothing. Right now, the fear is that we are shifting from a high demand/low supply market, to a low demand/high supply one, and that is why investors have punished MU stock. This punishing will last for the foreseeable future. But once gross margins turn a corner and start expanding again, MU stock will bounce back in a big way. This should happen sooner rather than later. The high-supply part of the equation isn't changing anytime soon, but the low demand part seems like a temporary hiccup from trade war issues, in what is an otherwise very strong secular growth narrative fueled by ever increasing demand from AI and data related markets. As such, once trade war issues are resolved, demand will normalize, and this will bring gross margins higher. When that happens, MU stock will explode higher given its anemic valuation as a single-digit P/E stock. ### Single Digit P/E Stocks: L Brands (LB) Source: Shutterstock Forward P/E Multiple: 9.8 Once a high flyer that was an icon of retail success, L Brands (NYSE:LB) has sharply reversed course over the past several years as its Victoria's Secret brand has struggled to grow sales amid rising competition and shifting consumer appetites. Broadly speaking, Victoria's Secret rose to power in the women's lingerie market during a time when bombshell beauty was the gold standard and push-up bras were what everyone wanted. Now, bombshell beauty is viewed as cheesy and artificial. Instead, consumers are opting for more natural beauty products like bralettes. As this shift has played out over the past several years, Victoria's Secret has struggled in a big way, and those struggles have killed LB stock. But there's reason to believe Victoria's Secret is turning a corner. The business reported 2% comparable sales growth in November against a -4% lap, marking one of its best one- and two-year comparable sales marks in several months. * 7 Stocks at Risk of the Global Smartphone Slowdown Meanwhile, L Brands' other segment, Bath & Body Works, fired off a record 18% comparable sales growth in November. In other words, it isn't all doom and gloom at L Brands. Once Victoria's Secret permanently turns a corner, this stock will rally in a big way. As of this writing, Luke Lango was long GME, INTC, T, IBM, and LB. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post 6 Single-Digit P/E Stocks With Huge Upside appeared first on InvestorPlace.
Will AMD's Lisa Su Step Up as Intel's Next CEO?Rumors of an Intel–AMD merger are falseIntel’s (INTC) next CEO is a hot topic in the tech sector. Rumors suggest that the company plans to announce its new CEO before its fourth quarter of 2018
The end of last year brought something not seen in a while--a bear market. As a result, many investors were reeling as stock prices--particularly in the tech industry--massively declined. However, when stocks decline, there is one silver lining that benefits cash-rich investors: cheap stocks. Many of the best stocks are now trading at low prices. Moreover, when companies with cheap stocks maintain or improve their growth rates, many investors often look to buy their shares. As we begin the new year, the following cheap stocks have those characteristics, leaving them well-positioned to skyrocket in the coming months and years. * 10 Growth Stocks With the Future Written All Over Them InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Cheap Stocks to Buy: Bank of America (BAC) More than ten years after the financial crisis, Bank of America (NYSE:BAC) is again on a list of cheap stocks. BAC has come a long way since it fell to $2.50 per share at the height of the crisis. Now, it trades at almost $29 per share. Moreover, it resumed annual increases of its dividend in 2014. Today, it returns 60 cents per share of dividends to its shareholders each year, yielding about 2.1%. However, the forward price-earnings ratio of about ten is what really makes BAC one of the best stocks. The multiple is well below the stock's five-year average of about 19. Also, companies whose stocks have single-digit PEs rarely generate double-digit profit increases, but BAC is in that category. Wall Street analysts on average expect the bank's profits to rise 10.6% this year. Moreover, according to the consensus estimate, BAC's average annual profit increase over the next five years will be 20.7%. The stock fell in 2018 amid a number of headwinds. Among these headwinds were the declining results of its investment banking unit, the negative market environment and fears of an inverted yield curve. However, amid these headwinds, Warren Buffett continues to buy BAC, indicating that the Oracle of Omaha considers it to be one of the best stocks in the market. Also, one can likely assume BAC has become his favorite bank stock. He now has a bigger position in BAC than in Wells Fargo (NYSE:WFC), which used to be his favorite bank stock. Assuming the economy doesn't nose dive, investors can, like Buffett, profit handsomely from one of the best stocks to buy in the market, BAC stock. ### Cheap Stocks to Buy: CannTrust (CNTTF) Although it's not among the more inexpensive stocks in the S&P 500, Canadian cannabis company CannTrust (OTCMKTS:CNTTF) makes the cheap stocks list because it's inexpensive compared to its peers in the marijuana industry. Unlike most cannabis companies, CannTrust is already profitable, and CNTTF stock has a forward price-earnings ratio of about 29.8. In an environment in which an industry leader, Canopy Growth (NYSE:CGC), trades at 100 times its sales, CNTTF is a screaming bargain and one of the best stocks in the market. Canadian marijuana stocks have suffered from a "sell the news" phenomenon since the companies' principal product became fully legal in their home market. However, CannTrust is poised to benefit from many trends. For one, it has applied for a listing on the New York Stock Exchange. Joining the Big Board should open up CNTTF stock to a new class of investors. Secondly, although cannabis remains on the list of Schedule 1 drugs in the U.S., the recent legislation that legalized hemp should give all Canadian marijuana firms a foothold in the U.S. market. The company's focus on pharma also provides the stock with another potential catalyst. CannTrust sent its first shipment of cannabis oil to Denmark in the third quarter of 2018. It has also entered the Asia-Pacific market, through a partnership with Australia-based Cannatrek. Consequently, even if the company fails to meaningfully penetrate the U.S. market, it still can benefit from overseas expansion. Furthermore, even though CannTrust's valuation is lower than that of its major peers, its growth should remain strong for the foreseeable future. On average, analysts predict that its profits will increase by almost 155% this year, making CNTTF a very cheap stock, despite its forward price-earnings ratio of nearly 30. As CannTrust moves into other developed countries and possibly the U.S., a revived interest in cannabis should enable its valuation to catch up with that of its peers. ### Cheap Stocks to Buy: Intel (INTC) Few PC-era stocks have suffered as much as Intel (NASDAQ:INTC) has. Once the world's largest chip maker, Intel stagnated as consumers increasingly turned away from PCs. Intel's PC-era peers such as Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and even AMD (NASDAQ:AMD) built new business lines and resumed growing. However, INTC stock continued to languish. The high turnover of its top management, as well as security-related issues, also weighed on Intel stock. However, INTC looks ready to again become one of the best stocks to buy in tech. The company has invested heavily in data-center technology. As a result, its Data Center group appears poised to overtake its PC Client group in size over the next few years. Due to Intel's purchase of Mobileye, INTC has become a leader in the autonomous-vehicle market. That, along with the company's Internet of Things (IoT) products, should help INTC stock rise. And as the advent of 5G makes more advanced applications possible, Intel will benefit even more from these trends. INTC is a cheap stock due to its price-earnings multiple. It trades at a forward PE ratio of about 10.6, showing that investors have yet to fully appreciate Intel's comeback. Due to a temporary glut of chips, Intel 's profit growth will be slow this year. However, its profits should resume growing by double-digit percentage rates in 2020. Once investors begin to realize that Intel has resumed a leadership role in the tech industry making it one of the best stocks in the market, it should again command valuations comparable to its peers in big tech. As of this writing, Will Healy is long CNTTF. You can follow Will on Twitter at @HealyWriting. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post 3 Cheap Stocks to Buy (Before They Skyrocket) appeared first on InvestorPlace.
The bulk of earnings reports expected to affect semiconductor stocks and the relevant exchange traded funds are still to come, but chip ETFs, such as the VanEck Vectors Semiconductor ETF (SMH) and the iShares PHLX Semiconductor ETF (SOXX) , could face other tests this week. After languishing last year, semiconductor stocks are showing some signs of life early in 2019. “Options traders in the January series have piled on to underscore the significance of triple-digit territory for SMH, having accrued call open interest totaling 24,139 contracts at the 100 strike,” reports Schaeffer's Investment Research.
Semiconductor stocks, often viewed as a bellwether segment in the technology sector, are coming off a rough year. In 2018, the PHLX SOX Semiconductor Sector Index, one of the most widely followed gauges of chip stocks, slipped 6.50%. That drop was nearly 200 basis points worse than the S&P 500's. While semiconductor stocks and mutual funds are rebounding to start 2019, some analysts are less than enthusiastic about the group. Morgan Stanley recently lowered its outlook on the semiconductor group, citing deteriorating conditions. Several of the industry's marquee names have also warned about slack demand over the coming quarters. Still, there are some compelling long-term data points to consider when evaluating semiconductor stocks and mutual funds to invest in. InvestorPlace - Stock Market News, Stock Advice & Trading Tips "The worldwide semiconductor memory market is anticipated to develop at quick pace over the estimate time frame attributable to growing popularity for smartphones and introduction of technologically innovative smart devices," according to Acumen Research and Consulting. "Rapidly increasing mobile computing and rising penetration of Solid-State Drives (SSD) is likewise foreseen to drive the growth of worldwide semiconductor memory market over the forecast time period." * 10 Growth Stocks With the Future Written All Over Them Here are the five best mutual funds for contrarian investors to invest in the semiconductor space. ### Fidelity Select Semiconductors Portfolio (FSELX) Expense Ratio: 0.75%, or $75 annually per $10,000 invested Compared to some of the exchange-traded funds (ETFs) in the semiconductor universe, the Fidelity Select Semiconductors Portfolio (MUTF:FSELX) is pricey with an annual fee of 0.75%, but investors can realize some cost savings with one of the best mutual funds for semiconductor exposure because Fidelity clients can transact in FSELX free of commissions. Adding to the case for FSELX as one of the best mutual funds for semiconductor exposure is the fund's long-term track record. This Fidelity fund has a lengthy history of outperforming the S&P 500, broader technology benchmarks and some well-known semiconductor indexes. FSELX is a top-heavy fund as its top 10 holdings combine for almost 70% of the fund's weight. That group includes Broadcom (NASDAQ:AVGO), Applied Materials (NASDAQ:AMAT) and Nvidia (NASDAQ:NVDA). ### Fidelity Advisor Semiconductors Fund - Class A (FELAX) Expense Ratio: 1.15% The Fidelity Advisor Semiconductors Fund - Class A (MUTF:FELAX) is one of the best mutual funds for investors looking for actively managed exposure to chip stocks. FELAX's primary manager is Steve Barwikowski, who has more than 10 years managing this fund. * Top 10 Global Stock Ideas for 2019 From RBC Capital FELAX has a four-star Morningstar rating and its top 10 holdings represented nearly 71% of the portfolio at the end of last year. As is to be expected, there is some holding overlap between FELAX and the aforementioned FSELX. Not surprisingly, most of FELAX's holdings are classified as growth stocks, primarily large- and mid-cap growth names. ### iShares PHLX Semiconductor ETF (SOXX) Expense Ratio: 0.47% The iShares PHLX Semiconductor ETF (NASDAQ:SOXX) is not a mutual fund. It is an ETF, but ETFs are descendants of mutual funds, so a case can be made that SOXX is one of the best mutual funds for those looking for semiconductor funds to invest in. One of the factors making SOXX one of the best mutual funds for chip stocks is cost efficiency relative to the category average. SOXX tracks the aforementioned PHLX SOX Semiconductor Sector Index and holds 30 stocks. Most semiconductor funds, including the best mutual funds, are concentrated in terms of roster size. As a cap-weighted fund, SOXX is also concentrated in terms of how many stocks really drive the fund's outcomes. Broadcom, Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) combine for nearly a quarter of the fund's weight. With a three-year standard deviation of 19.55%, SOXX reflects the volatile nature of the semiconductor space and other semiconductor funds, but its price-to-earnings ratio of just over 15 implies some attractive valuations for an industry that usually trades at a premium to the broader market. ### ProFunds Semiconductor UltraSector Investor Class (SMPIX) Expense Ratio: 1.46% The ProFunds Semiconductor UltraSector Investor Class (MUTF:SMPIX) is one of the best mutual funds for traders looking for some added juice on the semiconductor trade. SMIPX is designed to deliver 1.5 times the daily returns of the Dow Jones U.S. Semiconductor Index. That means that if that index rises 1% on a particular day, SMPIX should add 1.5%. Leveraged funds, be they mutual funds or ETFs, are particularly useful for active, risk-tolerant traders when there are looming catalysts. Earnings season could do the trick for SMPIX. * 7 Stocks to Buy as the Dollar Weakens From Jan. 22 to Feb. 18, about 72% of the PHLX Semiconductor Index's components report earnings, making SMPIX one of the best mutual funds to consider during that three-week span. ### SPDR S&P Semiconductor ETF (XSD) Expense Ratio: 0.35% There are a limited number of dedicated semiconductor funds, so as was noted earlier, some of the best mutual funds in this space are actually ETFs. The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) follows the S&P Semiconductor Select Industry Index, which is an equal-weight benchmark. That eliminates some of the concentration risk associated with cap-weighted semiconductor funds. None of XSD's 35 holdings account for more than 3.48% of the fund's weight. Many equal-weight funds are driven by exposure to smaller stocks, but XSD is a large-cap fund as highlighted by a weighted average market capitalization of $25.76 billion for its components. Following a sour performance in 2018, XSD is off to a strong start this year with a year-to-date gain of almost 4%. As of this writing, Todd Shriber did not own a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post The 5 Best Mutual Funds to Invest In the Semiconductor Space appeared first on InvestorPlace.
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