We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
With several interesting trends like the Internet of Things and artificial intelligence on the rise, it is an exciting time to be investing in the technology sector. What’s more, it is also a profitable time to be a tech-focused investor, as this space has been among the strongest performing sector all year.
And while the behemoths like Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) may hog all the headlines, it’s really been the companies powering their technologies—the semiconductor manufacturers—that have had a strong year on the markets.
Indeed, as our Computer and Technology sector has gained nearly 14% year-to-date, semiconductor companies have been a driving factor behind its growth. The aforementioned emerging tech trends have created new consumer demand, and the semiconductor makers are delivering.
Luckily, the proven Zacks stock picking methods are effective across all industries. Check out these Zacks Rank #1 (Strong Buy) semiconductor stocks right now:
Lam Research is a designer and manufacturer of semiconductor processing equipment used in the fabrication of integrated circuits. The company is recognized as a leading supplier of front-end wafer processing equipment to the worldwide semiconductor industry.
In its latest report, Lam posted earnings of $2.80 per share and revenue of $2.15 billion, beating our respective consensus estimates of $2.54 and $2.13 billion. Since then, we have seen seven positive revisions for the company’s full-year and next-year earnings. Our full-year estimates now call for EPS growth of 56.3% and revenue growth of 35.6%. In fact, current estimates project an EPS growth rate of nearly 17% over the next five years.
Micron is one of the leading worldwide providers of semiconductor memory solutions. The company’s memory solutions are marketed towards customers in a variety of industries, including computer manufacturing, consumer electronics, and telecommunications.
Micron basically matched our earnings and revenue estimates in its latest quarter, and this company’s story is still one of aggressive EPS and sales growth this year. In fact, Micron is expected to report earnings growth of over 6,000% this year. The stock also has an “A” grade for Value thanks to its impressive PE and PEG ratios. With shares hovering near a 52-week high, look for Micron to establish a new range if its insane growth continues.
Analog Devices is one of the world’s leading designers and manufacturers of high-performance analog, mixed-signal and digital signal processing integrated circuits used in signal processing applications.
The company is expected to report earnings on May 31, and estimates have been trending upward for some time. In fact, the Zacks Consensus Estimate for earnings is eight cents higher than it was 90 days ago. Furthermore, the company has an impressive record of beating earnings estimates, surpassing the Zacks Consensus Estimate by an average of 14.1% in each of the trailing four quarters.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
Image: Bigstock
3 Strong Buy Semiconductor Stocks to Consider Now
With several interesting trends like the Internet of Things and artificial intelligence on the rise, it is an exciting time to be investing in the technology sector. What’s more, it is also a profitable time to be a tech-focused investor, as this space has been among the strongest performing sector all year.
And while the behemoths like Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) may hog all the headlines, it’s really been the companies powering their technologies—the semiconductor manufacturers—that have had a strong year on the markets.
Indeed, as our Computer and Technology sector has gained nearly 14% year-to-date, semiconductor companies have been a driving factor behind its growth. The aforementioned emerging tech trends have created new consumer demand, and the semiconductor makers are delivering.
Luckily, the proven Zacks stock picking methods are effective across all industries. Check out these Zacks Rank #1 (Strong Buy) semiconductor stocks right now:
1. Lam Research Corporation (LRCX - Free Report)
Lam Research is a designer and manufacturer of semiconductor processing equipment used in the fabrication of integrated circuits. The company is recognized as a leading supplier of front-end wafer processing equipment to the worldwide semiconductor industry.
In its latest report, Lam posted earnings of $2.80 per share and revenue of $2.15 billion, beating our respective consensus estimates of $2.54 and $2.13 billion. Since then, we have seen seven positive revisions for the company’s full-year and next-year earnings. Our full-year estimates now call for EPS growth of 56.3% and revenue growth of 35.6%. In fact, current estimates project an EPS growth rate of nearly 17% over the next five years.
2. Micron Technology (MU - Free Report)
Micron is one of the leading worldwide providers of semiconductor memory solutions. The company’s memory solutions are marketed towards customers in a variety of industries, including computer manufacturing, consumer electronics, and telecommunications.
Micron basically matched our earnings and revenue estimates in its latest quarter, and this company’s story is still one of aggressive EPS and sales growth this year. In fact, Micron is expected to report earnings growth of over 6,000% this year. The stock also has an “A” grade for Value thanks to its impressive PE and PEG ratios. With shares hovering near a 52-week high, look for Micron to establish a new range if its insane growth continues.
3. Analog Devices (ADI - Free Report)
Analog Devices is one of the world’s leading designers and manufacturers of high-performance analog, mixed-signal and digital signal processing integrated circuits used in signal processing applications.
The company is expected to report earnings on May 31, and estimates have been trending upward for some time. In fact, the Zacks Consensus Estimate for earnings is eight cents higher than it was 90 days ago. Furthermore, the company has an impressive record of beating earnings estimates, surpassing the Zacks Consensus Estimate by an average of 14.1% in each of the trailing four quarters.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>