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Here Is Why You Should Bet on Vishay Intertechnology (VSH)

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On Jun 29, 2018, Vishay Intertechnology (VSH - Free Report) was upgraded to Zacks Rank #1 (Strong Buy).

Vishay is firing on all cylinders. The company is benefiting from strong adoption of its products in varied sectors like industrials, automotive, computing, telecommunications, military technology and medical industries, among others.

The company’s dominant position in providing semiconductor components like diodes, rectifiers, MOSFETS, infrared components & optocouplers has been driving growth in recent times. Moreover, Vishay has a large diversified customer base, which provides strong visibility into the company’s revenue growth trajectory.

Vishay’s consistent execution is reflected by its Zacks Consensus Estimate for earnings beat in all of the trailing four quarters. In the last reported quarter, Vishay reported adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate by 3 cents. Revenues increased 18.5% to $716.8 million.
 

 

Strong Portfolio & End-Markets as Key Catalysts

Vishay is well poised to benefit from growing demand for its products, due to increasing adoption of Internet of Things (IoT). Moreover, strong end-markets — Automotive and Industrial — present significant growth opportunities.

Vishay is benefiting from strong demand, which continues to exceed supply, in several product areas. The company is enjoying healthy growth in industrial segments like robotics, lighting and energy metering. Moreover, the medical segment continues to look positive, with steady growth expected for 2018.

Vishay is focused on expanding MOSFET portfolio in all voltage ranges. The company is also expanding its automotive offerings through new packages. Moreover, diversification into custom magnetics, power inductors and planar transformers is expected to boost customer base, going forward.

Vishay is also contemplating expansion in the Asia market, by leveraging its strength in automotive and industrial sectors. Moreover, strategic acquisition like UltraSource is expected to drive further growth.

A Solid Pick for Momentum Focus Investors

Vishay sports a Momentum Style Score of A.

Our research shows that stocks with Momentum Style Scores of A or B, when combined with a Zacks Rank #1 or #2 (Buy), offer best investment opportunities in the momentum investing space.

Other Stocks

Investors can also consider NVIDIA (NVDA - Free Report) , Micron Technology (MU - Free Report) and NetApp (NTAP - Free Report) from the broader Computer and Technology sector. The stocks sport similar Zacks Rank as Vishay.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for NVIDIA, Micron and NetApp are currently pegged at 10.25%, 8.18% and 13.84%, respectively.

 

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