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The Zacks Analyst Blog Highlights: ON Semiconductor, Tokyo Electron, Vishay Intertechnology, Jabil and Seiko Epson
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For Immediate Release
Chicago, IL – July 1, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ON Semiconductor Corporation (ON - Free Report) , Tokyo Electron Limited (TOELY - Free Report) , Vishay Intertechnology, Inc. (VSH - Free Report) , Jabil Inc. (JBL - Free Report) and Seiko Epson Corporation (SEKEY - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Tech Stocks Remain a Solid Option for Investors
While all the other sectors rebounding strongly this year have made headlines, technology has continued to outperform expectations. And that isn't just because of all the shortages and distribution glitches that effectively strengthened prices. Remember, this is one of the few areas that had a really strong 2020. So any growth at all from those levels would be encouraging.
Most tech stocks are projecting continued growth this year as the race to digitization that began last year continues through this one. Growth rates may be expected to moderate in 2022, but that's still six months away.
And so we see that the 2021 earnings estimate for the group has been raised 17.2% over the past year. Last year, analysts expected 2022 earnings to decline, but with the new year, there was a reversal in sentiment. The chip shortage and supply chain issues also created some uncertainty earlier on in the year, which may have led to the decline in March.
But from April onward, analysts appear much more confident. And so, at the current level, the 2022 estimate is actually up 1.8% from the year-ago level.
Since tech stocks have together risen about 19% year to date, the estimate revisions appear priced in, which also likely contributed to its placement at number 13 (out of a total 16 sectors). But this is a very large and diverse segment of the market and the secular drivers are simply huge. So opportunities are not that hard to find.
Take the Electronics - Parts Distribution industry, for example. The industry is in the top 4% of Zacks ranked industries. And as many of us already know, industries ranked in the top 50% have a much stronger chance of outperforming others, the higher their position, the better. Particularly if the stocks we're considering here have Zacks #2 (Buy) ranks.
ON Semiconductor Corp. has a #2 rank and VGM Score of A. It belongs to the attractive Semiconductor - Analog and Mixed industry (top 18%). The company is expected to grow earnings 127.9% this year followed by 19.8% growth in the next. Most encouragingly, its P/E multiple of 18.3X is below its median value of 21.8X over the past year and of course also below the S&P 500.
Tokyo Electron has a Zacks #2 rank and VGM Score of B. The Semiconductor – Discretes industry, to which it belongs is placed at the top 27% of Zacks-classified industries. Not only that- its earnings are expected to grow 44.4% in the year ending in March 2022, with 12.9% growth projected for the following year. However its valuation of 19.6X P/E trails its 21.0X median value and also the S&P 500. So this stock looks ripe for the picking.
#2-ranked Vishay Intertechnology with its VGM Score of A also belongs to the Semiconductor – Discretes industry. The company is expected to grow earnings 135.9% this year and 1.4% in the next. Its P/E of 10.3X is below the 15.4X median value and the S&P 500, which makes it a cheap stock.
Jabil is an Electronics - Manufacturing Services (top 33% of Zacks-classified industries) company with a Zacks Rank #2 and VGM Score of A. Its earnings growth projections for 2021 and 2022 (ending August) are 91.0% and 7.4%, respectively. At 9.9X P/E, its valuation is attractive both in terms iof its historical performance and with respect to the S&P 500.
And finally, we have Seiko Epson Corp., which has a Zacks Rank #2, VGM Score A, and belongs to the Office Automation and Equipment industry (top 37%). Its earnings are expected to grow 24.4% in the current year ending in March and 9.8% in the following year. Its 17.0X P/E makes valuation attractive both with respect to its own historical performance and the S&P 500.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the "Internet of Money" and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we're still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks' has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: ON Semiconductor, Tokyo Electron, Vishay Intertechnology, Jabil and Seiko Epson
For Immediate Release
Chicago, IL – July 1, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ON Semiconductor Corporation (ON - Free Report) , Tokyo Electron Limited (TOELY - Free Report) , Vishay Intertechnology, Inc. (VSH - Free Report) , Jabil Inc. (JBL - Free Report) and Seiko Epson Corporation (SEKEY - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Tech Stocks Remain a Solid Option for Investors
While all the other sectors rebounding strongly this year have made headlines, technology has continued to outperform expectations. And that isn't just because of all the shortages and distribution glitches that effectively strengthened prices. Remember, this is one of the few areas that had a really strong 2020. So any growth at all from those levels would be encouraging.
Most tech stocks are projecting continued growth this year as the race to digitization that began last year continues through this one. Growth rates may be expected to moderate in 2022, but that's still six months away.
And so we see that the 2021 earnings estimate for the group has been raised 17.2% over the past year. Last year, analysts expected 2022 earnings to decline, but with the new year, there was a reversal in sentiment. The chip shortage and supply chain issues also created some uncertainty earlier on in the year, which may have led to the decline in March.
But from April onward, analysts appear much more confident. And so, at the current level, the 2022 estimate is actually up 1.8% from the year-ago level.
Since tech stocks have together risen about 19% year to date, the estimate revisions appear priced in, which also likely contributed to its placement at number 13 (out of a total 16 sectors). But this is a very large and diverse segment of the market and the secular drivers are simply huge. So opportunities are not that hard to find.
Take the Electronics - Parts Distribution industry, for example. The industry is in the top 4% of Zacks ranked industries. And as many of us already know, industries ranked in the top 50% have a much stronger chance of outperforming others, the higher their position, the better. Particularly if the stocks we're considering here have Zacks #2 (Buy) ranks.
ON Semiconductor Corp. has a #2 rank and VGM Score of A. It belongs to the attractive Semiconductor - Analog and Mixed industry (top 18%). The company is expected to grow earnings 127.9% this year followed by 19.8% growth in the next. Most encouragingly, its P/E multiple of 18.3X is below its median value of 21.8X over the past year and of course also below the S&P 500.
Tokyo Electron has a Zacks #2 rank and VGM Score of B. The Semiconductor – Discretes industry, to which it belongs is placed at the top 27% of Zacks-classified industries. Not only that- its earnings are expected to grow 44.4% in the year ending in March 2022, with 12.9% growth projected for the following year. However its valuation of 19.6X P/E trails its 21.0X median value and also the S&P 500. So this stock looks ripe for the picking.
#2-ranked Vishay Intertechnology with its VGM Score of A also belongs to the Semiconductor – Discretes industry. The company is expected to grow earnings 135.9% this year and 1.4% in the next. Its P/E of 10.3X is below the 15.4X median value and the S&P 500, which makes it a cheap stock.
Jabil is an Electronics - Manufacturing Services (top 33% of Zacks-classified industries) company with a Zacks Rank #2 and VGM Score of A. Its earnings growth projections for 2021 and 2022 (ending August) are 91.0% and 7.4%, respectively. At 9.9X P/E, its valuation is attractive both in terms iof its historical performance and with respect to the S&P 500.
And finally, we have Seiko Epson Corp., which has a Zacks Rank #2, VGM Score A, and belongs to the Office Automation and Equipment industry (top 37%). Its earnings are expected to grow 24.4% in the current year ending in March and 9.8% in the following year. Its 17.0X P/E makes valuation attractive both with respect to its own historical performance and the S&P 500.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the "Internet of Money" and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we're still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks' has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.