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Here's Why You Should Buy Semtech (SMTC) Stock Right Now
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Semtech Corporation (SMTC - Free Report) is currently one of the top-performing stocks in the technology sector, and an increase in share price and strong fundamentals signals its bull run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
The company has performed extremely well over the past few months and has the potential to carry on the momentum in the near term as well.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of its price trend shows that the stock has had an impressive run on the bourses over the past year. Semtech has returned 70.3%, comparing favorably with its industry’s 2.6% growth.
Solid Rank & Momentum Score: Semtech currently carries a Zacks Rank #1 (Strong Buy) and has a Momentum Score of A. Our research shows that stocks with a Momentum Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Positive Earnings Surprise History: Semtech has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, recording an average positive earnings surprise of 4.17%.
Strong Growth Prospects: The Zacks Consensus Estimate for 2018 earnings of $2.23 reflects year-over-year growth of 19.3%. Moreover, earnings are expected to grow 20.2% in fiscal 2019. The stock has a long-term expected earnings per share growth rate of 5%.
Growth Drivers: Key growth drivers for Semtech are product differentiation, operational flexibility, and a specific focus on fast-growing segments and regions.
In the last reported quarter, the company’s earnings of 55 cents per share beat the consensus mark by 1 cent, and also increased 17% sequentially and 15% year over year.
Also, non-GAAP revenues of $163.2 million increased 25.1% sequentially and 6.6% from the prior-year quarter. The increase was driven by growth in the IoT, data center and mobile markets.
Moreover, the growing need for more efficient energy management in home and industrial settings, increasing electronic system requirements for mobile devices, rising demand for Internet connectivity to low power sensors and propagation of green standards will drive the demand for Semtech’s solutions.
We believe that Semtech is in a great position to grow sustainably and profitably based on its strong pipeline of innovative products, supported by expanding opportunities in industrial and communications markets.
Long-term earnings growth for Infineon Technologies, ON Semiconductor and Rambus is currently projected to be 7.5%, 13.2% and 10%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Here's Why You Should Buy Semtech (SMTC) Stock Right Now
Semtech Corporation (SMTC - Free Report) is currently one of the top-performing stocks in the technology sector, and an increase in share price and strong fundamentals signals its bull run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
The company has performed extremely well over the past few months and has the potential to carry on the momentum in the near term as well.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of its price trend shows that the stock has had an impressive run on the bourses over the past year. Semtech has returned 70.3%, comparing favorably with its industry’s 2.6% growth.
Solid Rank & Momentum Score: Semtech currently carries a Zacks Rank #1 (Strong Buy) and has a Momentum Score of A. Our research shows that stocks with a Momentum Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Positive Earnings Surprise History: Semtech has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, recording an average positive earnings surprise of 4.17%.
Strong Growth Prospects: The Zacks Consensus Estimate for 2018 earnings of $2.23 reflects year-over-year growth of 19.3%. Moreover, earnings are expected to grow 20.2% in fiscal 2019. The stock has a long-term expected earnings per share growth rate of 5%.
Growth Drivers: Key growth drivers for Semtech are product differentiation, operational flexibility, and a specific focus on fast-growing segments and regions.
In the last reported quarter, the company’s earnings of 55 cents per share beat the consensus mark by 1 cent, and also increased 17% sequentially and 15% year over year.
Also, non-GAAP revenues of $163.2 million increased 25.1% sequentially and 6.6% from the prior-year quarter. The increase was driven by growth in the IoT, data center and mobile markets.
Moreover, the growing need for more efficient energy management in home and industrial settings, increasing electronic system requirements for mobile devices, rising demand for Internet connectivity to low power sensors and propagation of green standards will drive the demand for Semtech’s solutions.
We believe that Semtech is in a great position to grow sustainably and profitably based on its strong pipeline of innovative products, supported by expanding opportunities in industrial and communications markets.
Semtech Corporation Price and Consensus
Semtech Corporation Price and Consensus | Semtech Corporation Quote
Other Stocks to Consider
Other top-ranked stocks in thesame industry include Infineon Technologies AG (IFNNY - Free Report) , ON Semiconductor Corporation (ON - Free Report) and Rambus Inc. (RMBS - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Infineon Technologies, ON Semiconductor and Rambus is currently projected to be 7.5%, 13.2% and 10%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>