|Bid||0.00 x 800|
|Ask||0.00 x 1400|
|Day's Range||106.96 - 108.04|
|52 Week Range||89.46 - 114.55|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
Things have been slow for the semiconductor industry in 2018 after rapid growth in 2017. The Market Vectors Semiconductor ETF (SMH) rose 36.5% in 2017 and only 8.6% in the first nine months of 2018. Stocks like Advanced Micro Devices (AMD) and Qualcomm (QCOM), which underperformed in 2017, are gaining momentum in 2018 as they revive their business and come out as strong competitors. In contrast, stocks like Micron Technology (MU), Intel (INTC), and Broadcom (AVGO), which delivered strong returns in 2017, are seeing a slump in 2018.
Shares of semiconductor (SMH) company Micron Technology (MU) rose 4% on September 18. The stock is currently trading at $45.33, 33% above its 52-week low of $34.09 and 30% below its 52-week high of $64.66.
Amid the US-China (MCHI) trade tension, investors should note that bilateral trade between the countries is lopsided—China imports far fewer goods from the United States than it exports. Therefore, China will likely not be able to retaliate dollar-for-dollar to tariffs on $200 billion in Chinese goods. However, it may explore other ways to respond.
Semiconductor stocks are proving to be important drivers of the broader technology sector’s 2018 upside. Just look at the widely followed PHLX SOX Semiconductor Sector Index, which is up 9.60% year-to-date. Investors looking to profit should consider semiconductor ETFs.
Semiconductor stocks are rolling over … again. The Market Vectors Semiconductor ETF (NYSEARCA:SMH), which I called my favorite exchange-traded fund as recently as June, has plunged this month, from $109.73 on Labor Day to $106.30 as trade opened Sept. 7. The Vanguard Consumer Discretionary ETF (NYSEARCA:VCR) is up 12.6% for the year, with most holdings in retailers and entertainment companies.
AMAT stock has generated returns of -16.0% since the start of this year. Of the 21 analysts tracking AMAT stock, 18 recommended a “buy,” and three recommended a “hold.” There were no “sell” recommendations on the stock. The average 12-month price target for Applied Materials is $62.09, which indicates that the stock is trading at a discount of 44.0% to analysts’ estimates.
Semiconductor (SMH) stock Microchip Tech (MCHP) is currently trading at $86.03, which is 10.0% above its 52-week low of $78.33 and 17.4% below its 52-week high of $104.20. Of the 18 analysts tracking Microchip, 13 recommended a “buy,” five recommended a “hold,” and there is no “sell” recommendation on the stock. The average 12-month price target for Microchip (MCHP) is $114.56, which indicates that the stock is trading at a discount of 33.0% to analysts’ estimates.
Broadcom (AVGO) stock has delivered good returns to its shareholders due to its strong execution of mergers and acquisitions. Since the start of 2018, Broadcom’s stock price has fallen 18.0%. Although Broadcom’s overall business is strong, uncertainty surrounding the new acquisition is impacting its stock price.
Semiconductor ETFs were among the few areas of strength coming off the long weekend as Advanced Micro Devices (AMD) surged on an improving market outlook. On Tuesday, the VanEck Vectors Semiconductor ETF (SMH) rose 0.1% and the iShares PHLX Semiconductor ETF (SOXX) added 0.2%. Advanced Micro Devices helped prop up the sector after several analysts grew more optimistic over the future market share for the chipmaker.
The PC market has dipped recently, which hurts many semiconductor stocks. However, semiconductors continue to be indispensable in phones, games, cars, military weapons and even home appliances. Also, cloud computing is increasing the number of devices needed to access the cloud.
The back-to-school season, the shopping extravaganza between July and September that comes second to holiday shopping, is at its peak. Americans are estimated to spend $27.6 billion this time, per an article published on CNBC. Keeping this in mind, below we highlight a few patterns that have been established in this year’s back-to-school season.Departmental Stores to Gain Upper Hand
The Market Vectors Semiconductor ETF (NYSEARCA:SMH) is up 2.2% in trading today to return to levels not seen since June. Analysts are looking for earnings of $4.82-per-share on revenues of $5.1 billion. When the company last reported on June 7, earnings of $4.88 beat estimates by 14 cents on a 19.4% rise in revenue.
While there's controversy on the Street over the future of the chip industry, with bears saying that fundamentals are weak and the top is in, Todd Gordon, the founder of TradingAnalysis.com, remains bullish. The analyst pointed to a chart of the VanEck Vectors Semiconductor ETF ( SMH), an ETF that tracks chipmakers, noting the formation of an Elliot Wave triangle. Traditionally, a triangle in the Elliot Wave theory has five swings, reflecting periods of higher highers and lower lowers, noted Gordon.
Semiconductor stocks and the related exchange traded funds have recently experienced some sharp moves. For example, the VanEck Vectors Semiconductor ETF (SMH) and the iShares PHLX Semiconductor ETF (SOXX) recently slumped following some marquee earnings reports, but both ETF are showing signs of bouncing back. “Chip stocks have gone from hot, to not, to hot again.
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to break down the latest market moves.
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Dion Rabouin to discuss the latest market moves.
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest market moves.
CNBC's Dom Chu reports on the Vaneck Vectors Semi ETF as it tries to bounce back along with other ETFs that are not economically sensitive.