|Bid||81.55 x 3200|
|Ask||81.67 x 900|
|Day's Range||80.62 - 81.86|
|52 Week Range||60.12 - 94.39|
|Beta (3Y Monthly)||1.26|
|PE Ratio (TTM)||15.57|
|Forward Dividend & Yield||1.76 (2.14%)|
|1y Target Est||N/A|
Despite concerns that problematic inventory levels as well as flaring trade tensions would weigh down the semiconductor industry, the sector has still been able to grow with the VanEck Semiconductor ETF up 40% year-to-date. Adding to the good news for investors, one of the best-performing analysts believes that several catalysts could drive even more gains for semiconductor stocks. “Our prevailing takeaway is that the multi-quarter inventory correction, which started in earnest in July 2018, is largely over and inventory levels have bottomed. Despite the near-term macroeconomic volatility, we believe there will be a number of catalysts in 2020 that will have a positive impact the semiconductor industry,” Needham’s Rajvindra Gill wrote in a note to clients on September 11. Bearing this in mind, we used the TipRanks Stock Comparison tool to take a closer look at how a few of the stocks in this space stack up against each other. Our comparison was based not only on yearly gain, but also analyst consensus and average analyst price target. Here’s what we found out. Micron Technology Inc. Despite widespread volatility throughout the semiconductor space, shares of memory chip provider Micron (MU\- Get Report) have climbed 59% year-to-date, the highest out of the stocks on the list. Based on the improved outlook for the sector, even more gains could be on the way.According to Gill, the primary catalyst expected to drive growth for MU is an improvement in the memory cycle. Recently, MU experienced issues related to weaker DRAM and NAND demand and pricing as a result of higher inventories. DRAM, dynamic random-access memory, is used in desktop computers and servers, while NAND is flash memory that’s typically found in smartphones and solid-state hard drives. It should be noted that Needham’s research suggests that while NAND and DRAM supply levels remain higher than normal, the memory cycle is improving. Additionally, while price declines are slowing down, the deceleration hasn’t bottomed out with a normal supply and demand balance mostly likely expected through the first half of 2020. That being said, investors can expect a turnaround in 2020 thanks to several demand catalysts such as normalized hyperscaler spending, specifically at Microsoft (MSFT) and Amazon Web Services (AMZN), with the most notable driver being 5G. 5G smartphones represent a major upgrade cycle in 2020. According to Gill, the amount of 5G smartphones could reach 120 million to 140 million units at the mid-point in 2020. With every original equipment manufacturer (OEM) looking to get in on the trend, 5G creates several growth opportunities for MU. While some investors have expressed concerns regarding MU’s dependence on Huawei, Gill believes MU has “de-risked” its exposure going into Q3. As a result of all of the above factors, the five-star analyst kept his Buy rating and $50 price target.All in all, the Street takes a cautiously optimistic stance on MU. With 14 Buy ratings vs 5 Holds and 2 Sells assigned in the last three months, MU is a ‘Moderate Buy’. It has an average price target of $51, suggesting 0.04% upside. The low upside potential makes sense given the fact that share prices have soared year-to-date. Skyworks Solutions, Inc. Skyworks (SWKS\- Get Report) designs semiconductors for cellular infrastructure as well as for radio frequency applications. With shares already up 23% year-to-date, Gill has high hopes for SWKS thanks to 5G.Similar to MU, Skyworks is expected to get a significant boost in 2020 with the 5G smartphone rollout. The fact that the minimum requirement for every 5G phone is 6GB of DRAM bodes well for the company. However, Gill points out that 5G infrastructure could be an even bigger driver of growth.In order to make 5G a reality, mobile broad brand will need to be upgraded in order to enable higher data transmissions for portable devices. Networks also require very low latency as well as smart manufacturing. Telecommunication providers have ramped up efforts to get ready for 5G, with this especially apparent in China. In 2019, three major Chinese mobile operators increased their year-end base station deployments. Adding to the good news, 5G licenses were approved in June, earlier than previously expected. As a result, China bumped up its 5G base station deployments for 2020, with its overall target now at 500,000. “As operators are aggressively expanding the power supplies to meet requirements (5x increase in MOSFET usage in 5G radios and the expected 3-5x increase in the number of 5G base stations compared to those in 4G), SWKS stands to reap the benefits,” Gill noted. He adds that investors should take comfort in that fact that the company has also reduced its Huawei exposure. As a result, the Needham analyst maintained his Buy rating and $95 price target. He tells investors that SWKS could see a 16% gain in the next twelve months.The word on the Street is more mixed. 6 Buy ratings and 7 Holds received in the last three months add up to a ‘Moderate Buy’ analyst consensus. Its $87 average price target indicates 6% upside potential. Microchip Technology Inc. The last semiconductor stock on our list develops chips for many applications including displays, computing, wireless connectivity as well as several others. Despite being the target of recent negative media attention, Microchip (MCHP\- Get Report) could see its 32% year-to-date gain surge even more. Investors were not happy to learn on September 3 that the company maintained its lackluster guidance for second quarter fiscal 2020. Management stated that as a result of the U.S.-China trade war, it expects to see quarterly revenue fall between $1.323 billion and $1.375 billion. This was incredibly disappointing as it represents zero to 4% growth.That being said, Gill believes a turnaround could be on the way as shares are trading at a multi-year P/E discount based on its computer vision products and advanced driver-assistance systems (ADAS). The organic light-emitting diode (OLED) market could see a major investment cycle in the next two to three years. While OLED does cost about 5% to 10% more than LCD displays and takes slightly longer to manufacture, these costs are expected to narrow very soon.The flexibility of OLED displays makes the technology especially useful in touch IC applications. Based on this, Gill believes OLED will take over the industry which is good news for MCHP. “We think OLED will account for over 50% of the smartphone market. Our conversations point to rapid OLED adoption at the major OEMs and expanding OLED formats (flexible, rigid and foldable) across the high-end and mid-range portfolio,” he explained. As a result, Gill maintained his Buy rating and $100 price target on MCHP. He is confident that shares have the potential to gain 5% in the next twelve months. The rest of Wall Street mirrors the analyst’s sentiment. MCHP boasts a ‘Strong Buy’ analyst consensus as well as a $108 average price target, suggesting 14% upside potential, beating out both MU and SWKS in terms of each of these factors. Find Wall Street’s most loved stocks with the Top Analysts’ Stocks tool
Broadcom, Cirrus Logic, Cypress Semiconductor and Skyworks Solutions all stand to gain from Apple’s new lineup of iPhones, KeyBanc Capital Markets’ John Vinh said in a note to clients late Tuesday.
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The internet of things has been a hot topic for years now, but with a 5G revolution right around the corner, connected devices are garnering more and more attention. Trade tension with China has made the market shaky, especially in the tech space. However, when it comes to picking stocks to buy in the technology sector, the internet of things is a great place to start.Here's a look at five stocks that offer exposure to the fast-growing internet of things market.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Internet of Things Stocks to Buy: AT&T (T)Source: Roman Tiraspolsky / Shutterstock.com If you're looking for internet of things stocks to buy, the first place to look is network providers. None of the connectivity needed would be possible without telecoms building and maintaining infrastructure to support it. If everything goes according to plan and T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) merge, there are only three names to choose from on that list -- T-Mobile, AT&T (NYSE:T) and Verizon (NYSE:VZ). A lot of people point to Verizon as the winner of the three, but the only telecom I'd be willing to bet on right now is T. * 7 Best Tech Stocks to Buy Right Now T stock is cheap because the firm is weighed down by a massive debt pile that it acquired beefing up its content library in preparation for a new streaming service. Not everyone believes in AT&T's path forward, which explains the firm's ultra-low valuation. However, I think T stock's future looks bright in the streaming space and its position in 5G means the company has a definite future growth catalyst. With a near 6% dividend yield and a forward price-to-earnings ratio of just 9.7, T stock is a cheap way to buy into the revolution. Honeywell International (HON)Source: josefkubes / Shutterstock.com Another internet of things stock that can't be overlooked is Honeywell (NYSE:HON), an American company responsible for a wide range of connected household devices. Honeywell not only makes everything from connected fire alarms to thermostats for consumers, but the firm also delivers a wide range of connected solutions at the enterprise level as well. There's a lot to like about HON stock from its modest P/E of 18.4 to its respectable 2% dividend yield to the fact that it's been able to grow its earnings per share by 14% annually for the past three years. However, what I find most compelling about Honeywell is the fact that the firm is making big moves into the internet of things space in an unprecedented way. HON is pushing forward with connectivity as a service, a strategy that combines connected wearables with cloud-based applications in order to assist customers in creating more efficient organizations. DexCom (DXCM)Source: FOOTAGE VECTOR PHOTO / Shutterstock.com It would be irresponsible to talk about internet of things stocks to buy without mentioning at least one healthcare play. The healthcare space holds a lot of potential for growth when it comes to connected devices because data collection is such an important part of the industry. DexCom (NASDAQ:DXCM) makes glucose monitors for people living with diabetes. DXCM stock is up 43% so far this year, though it's been a bumpy ride for investors. In just two years, DXCM is up 128% as its devices gained notoriety and investors started to take notice. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Of course there is some risk buying into a stock that's been on a run up, but DexCom looks likely to keep climbing in the years ahead as it rolls out new devices at more affordable price points. DexCom is planning to roll out a new glucose monitor in late 2020 or early 2021 that will be smaller than the firm's G6 model. Its lower manufacturing costs mean it will be less expensive for consumers. Management is hoping that the new G7 model will help the firm break into other markets beyond glucose monitoring which would create an entirely new growth runway. Skyworks Solutions (SWKS)Source: madamF / Shutterstock.com Another industry that can't be overlooked when it comes to the internet of things is the semiconductor space. The chips that power connected devices and the networks themselves are an integral part of the overall future of the internet of things. However, choosing which semiconductor stocks to buy right now is a tricky business as the industry has been up against some pretty strong headwinds in recent months. My pick here is Skyworks Solutions (NASDAQ:SWKS), a Massachusetts-based semiconductor firm whose share price has been on a roller coaster ride for the past year. The government's ban on sales to Huawei has hurt SWKS stock significantly -- in the third quarter the firm saw its revenue fall 14% and EPS were down a whopping 47%. However, the firm appears to be faring well in areas unaffected by the trade tension. The company is becoming a major player in the 5G space, and its connected chips can now be found in a variety of electronics including soundbars and smartwatches. The firm's tech is also included in Oculus headsets, Facebook's (NASDAQ:FB) virtual reality arm.So, although you're taking on a lot of risk considering that the trade war with China looks unlikely to let up anytime soon, SWKS could offer a great deal of reward as well. Not only will its connected chips drive growth in the future, but the firm's comparisons in 2020 will be much easier after the dismal year it's had. That means investors who can stomach the risk could see a payoff in just a few months time. Visa (V)Source: Tada Images / Shutterstock.com Payment processors will be another big beneficiary of a more connected world. As more and more devices make their way online, online payments will continue to rise. Part of the reason connected devices are gaining traction is that they reduce friction in people's lives. Cash has become friction for many people, leading developers to look for easier ways to allow people to pay for things without ever taking out their wallets. The two largest credit card networks, Visa (NYSE:V) and Master Card (NYSE:MA) will be able to continue building their networks as people continue to opt for cashless payments. Don't get me wrong, V stock is expensive -- it trades at almost 29 times its future earnings, but that extra cost is worth it. Visa makes money every time someone uses their credit or debit cards, and with trillions of dollars changing hands in Visa's name each year, that translates into some pretty impressive revenue figures. Guggenheim Securities analyst Jeff Cantwell said he also sees a lot of potential growth in Visa's business to business payments arm. Cantwell pointed out that V stock will benefit significantly as contactless payments spread and Visa pushes its way further into cross-border transactions, a $100 trillion market.As of this writing Laura Hoy was long FB and T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post 5 Internet of Things Stocks to Buy Now appeared first on InvestorPlace.
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Woburn-based Skyworks Solutions contends that the upcoming deployment of the 5G network across the U.S. will make up for the losses the company suffered as a result of the U.S. ban on doing business with Chinese telecom giant Huawei.
Skyworks (SWKS) delivered earnings and revenue surprises of 0.75% and 0.14%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Investing.com - Skyworks (NASDAQ:SWKS) reported third quarter earnings that matched analysts' expectations on Wednesday and revenue that topped forecasts.
Skyworks Solutions (NASDAQ: SWKS ) releases its next round of earnings this Wednesday, August 7. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report. Earnings and ...