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Zacks Value Investor Highlights: Nvidia, Micron, Applied Materials, Lam Research and Intel
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For Immediate Release
Chicago, IL – Dec 8, 2017 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/285186/the-semiconductors-value-stocks-or-a-trap)
Semiconductors: Value Stocks or Value Traps?
Welcome to Episode #71 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
Things were running smoothly for the technology stocks until December hit. Suddenly, investors and traders started selling the big technology names, including the FANG stocks, and putting the money into other sectors like retail and financials.
The hardest hit technology industry, however, has been the semiconductors.
They’ve been on a tear in 2017. The semiconductor ETFs are up about 36% year-to-date, and that’s even after the recent weakness. Some individual names are up over 100% in the last 12 months.
Is this just profit taking and has it created a buying opportunity for value investors?
Or is there something else lurking below the surface that could lead these stocks down the road of being value traps?
Definition of a Value Trap
Remember, a lot of stocks can look cheap. They may have low P/E ratios or the shares may have taken a dive, giving the illusion of cheapness.
What investors need to look at is the “E” part of the equation.
What are earnings doing? Are they on the rise or are analysts cutting them?
A value trap is a stock that looks cheap but which has declining earnings so it’s not really as cheap as it seems.
Tracey decided to take a look at 5 big semiconductor names to see if they were value stocks or value traps.
5 Semiconductor Stocks: Are They Values or a Trap?
1. Nvidia (NVDA - Free Report) has fallen over 10% since the semiconductor sell off began but it hasn’t been a “cheap” stock in some time. Even with the selloff it still trades with a forward P/E of 45.2. However, for growth investors, is the big earnings growth story still intact?
2. Micron (MU - Free Report) actually reports earnings on Dec 19 so The Street will get an update on what the outlook is shortly. Last quarter, the company was still bullish on fiscal 2018 demand. Will they be this time? Shares are still cheap, with a forward P/E of only 5.2.
3. Applied Materials (AMAT - Free Report) has fallen over 12% since the semiconductor sell off began. And while one estimate has been cut for fiscal 2018 in the last 60 days, 9 have been raised in that time period. It still has attractive valuations with a forward P/E of just 12.6.
4. Lam Research (LRCX - Free Report) has gotten hit for a 15% pullback on the industry worries. That haven’t been any analyst cuts to the fiscal 2018 estimates while 6 estimates were raised over the last 2 months. It has a forward P/E of only 12.2.
5. Intel (INTC - Free Report) didn’t see as big of gains in 2017 as others but it also hasn’t sold off as sharply. Shares were down just about 3% on the semiconductor sell off. Analysts continue to be bullish with 14 estimates raised for both 2017 and 2018 while none have been cut.
The semiconductor industry is diverse. Not all semis are created equal so investors need to do their research on each company.
What else should you know about the semiconductors?
Listen to this week’s podcast to find out.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now. Click here to learn more.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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Zacks Value Investor Highlights: Nvidia, Micron, Applied Materials, Lam Research and Intel
For Immediate Release
Chicago, IL – Dec 8, 2017 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/285186/the-semiconductors-value-stocks-or-a-trap)
Semiconductors: Value Stocks or Value Traps?
Welcome to Episode #71 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
Things were running smoothly for the technology stocks until December hit. Suddenly, investors and traders started selling the big technology names, including the FANG stocks, and putting the money into other sectors like retail and financials.
The hardest hit technology industry, however, has been the semiconductors.
They’ve been on a tear in 2017. The semiconductor ETFs are up about 36% year-to-date, and that’s even after the recent weakness. Some individual names are up over 100% in the last 12 months.
Is this just profit taking and has it created a buying opportunity for value investors?
Or is there something else lurking below the surface that could lead these stocks down the road of being value traps?
Definition of a Value Trap
Remember, a lot of stocks can look cheap. They may have low P/E ratios or the shares may have taken a dive, giving the illusion of cheapness.
What investors need to look at is the “E” part of the equation.
What are earnings doing? Are they on the rise or are analysts cutting them?
A value trap is a stock that looks cheap but which has declining earnings so it’s not really as cheap as it seems.
Tracey decided to take a look at 5 big semiconductor names to see if they were value stocks or value traps.
5 Semiconductor Stocks: Are They Values or a Trap?
1. Nvidia (NVDA - Free Report) has fallen over 10% since the semiconductor sell off began but it hasn’t been a “cheap” stock in some time. Even with the selloff it still trades with a forward P/E of 45.2. However, for growth investors, is the big earnings growth story still intact?
2. Micron (MU - Free Report) actually reports earnings on Dec 19 so The Street will get an update on what the outlook is shortly. Last quarter, the company was still bullish on fiscal 2018 demand. Will they be this time? Shares are still cheap, with a forward P/E of only 5.2.
3. Applied Materials (AMAT - Free Report) has fallen over 12% since the semiconductor sell off began. And while one estimate has been cut for fiscal 2018 in the last 60 days, 9 have been raised in that time period. It still has attractive valuations with a forward P/E of just 12.6.
4. Lam Research (LRCX - Free Report) has gotten hit for a 15% pullback on the industry worries. That haven’t been any analyst cuts to the fiscal 2018 estimates while 6 estimates were raised over the last 2 months. It has a forward P/E of only 12.2.
5. Intel (INTC - Free Report) didn’t see as big of gains in 2017 as others but it also hasn’t sold off as sharply. Shares were down just about 3% on the semiconductor sell off. Analysts continue to be bullish with 14 estimates raised for both 2017 and 2018 while none have been cut.
The semiconductor industry is diverse. Not all semis are created equal so investors need to do their research on each company.
What else should you know about the semiconductors?
Listen to this week’s podcast to find out.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want more insights from Tracey?
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now. Click here to learn more.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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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.