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Bull of the Day: Vishay Intertechnology, Inc. (VSH)
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Vishay Intertechnology, Inc. (VSH - Free Report) manufactures discrete semiconductors and passive components and it’s expected to have a bounce-back year in 2021 after it posted strong results to end FY20. VSH stock has also managed to hit new 52-week highs amid a recent string of tech selling. And at $25 a share, Vishay’s price tag, along with some of its other fundamentals might make it an enticing buy.
Vishay’s Elevator Pitch
Vishay is a manufacturer of discrete semiconductors that include diodes, rectifiers, and more, as well as passive electronic components that range from resistors to capacitors. VSH’s discrete semiconductors perform more basic electronic functions that are vital and used in countless devices and equipment. The company is exposed to growth within the computing world, the automotive and telecommunications industries, the aerospace sector, and many other areas.
The Pennsylvania-based firm aims to be a “one-stop shop” service and its successful acquisitions and innovations have helped it become one of the world's largest manufacturers of discrete semiconductors and passive components. Vishay topped our Q4 revenue estimates in early February and it matched our bottom-line projection—after it had crushed our EPS projections by a 70% average in the previous three quarters.
VSH’s revenue jumped over 9% to beat Q3’s 2% expansion that saw it return to growth after five straight periods of declining sales. This is hardly unusual in the historically cyclical world of semiconductors, impacting giants like Nvidia (NVDA - Free Report) . And Vishay’s outlook appears strong for 2021 and beyond.
Other Fundamentals
As we touched on at the outset, VSH hit new 52-week highs on Tuesday of $25.22 a share, even as many other tech stocks rest below their mid-February records. The stock was subject to some selling recently, but it quickly recovered from an early March pullback.
The nearby chart shows that Vishay shares have more than double their industry over the last six months, up roughly 60%. This run is part of a 90% climb over the past year to match the Semiconductor market.
Investors should note that VSH has lagged the broader tech sector over the last five years, up 100% vs. 150%. But the stock has managed to match the S&P 500 during this stretch.
Along with its solid performance that does include some significant ups and downs, it provides solid value compared to its industry. At 1.2X forward 12-month sales, VSH trades at a discount to its own year-long highs and well beneath its industry’s 5X average.
The company’s valuation is even better when we look at forward earnings, with it trading at a 30% discount to its industry and a 15% discount to its own year-long highs despite its stock sitting at new highs. VSH also sits below overbought levels (70 or higher) in terms of RSI at 58.
Vishay is part of the Semiconductor – Discretes space that is in the top 10% of our 250 Zacks industries at the moment. The stock also rocks an “A” grade for Value and a “B” for Growth in our Style Scores system.
Plus, the company’s dividend is currently yielding 1.52%. This tops its industry’s 1.42% average and the S&P 500’s, while coming in just below the recently-climbing 10-year U.S. Treasury.
Bottom Line
Zacks estimates call for the company’s revenue to climb over 18% in 2021 and another 5% in FY22 to reach $3.10 billion and help it surpass its FY18 levels. Better yet, its adjusted earnings are projected to jump by 88% to reach $1.73 a share, with FY22 set to climb another 11% higher.
Meanwhile, Vishay’s earnings revisions have turned far more positive since its early Feb. release, with its FY21 consensus estimate up 32%. This strength helps VSH grab a Zacks Rank #1 (Strong Buy) at the moment.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
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Bull of the Day: Vishay Intertechnology, Inc. (VSH)
Vishay Intertechnology, Inc. (VSH - Free Report) manufactures discrete semiconductors and passive components and it’s expected to have a bounce-back year in 2021 after it posted strong results to end FY20. VSH stock has also managed to hit new 52-week highs amid a recent string of tech selling. And at $25 a share, Vishay’s price tag, along with some of its other fundamentals might make it an enticing buy.
Vishay’s Elevator Pitch
Vishay is a manufacturer of discrete semiconductors that include diodes, rectifiers, and more, as well as passive electronic components that range from resistors to capacitors. VSH’s discrete semiconductors perform more basic electronic functions that are vital and used in countless devices and equipment. The company is exposed to growth within the computing world, the automotive and telecommunications industries, the aerospace sector, and many other areas.
The Pennsylvania-based firm aims to be a “one-stop shop” service and its successful acquisitions and innovations have helped it become one of the world's largest manufacturers of discrete semiconductors and passive components. Vishay topped our Q4 revenue estimates in early February and it matched our bottom-line projection—after it had crushed our EPS projections by a 70% average in the previous three quarters.
VSH’s revenue jumped over 9% to beat Q3’s 2% expansion that saw it return to growth after five straight periods of declining sales. This is hardly unusual in the historically cyclical world of semiconductors, impacting giants like Nvidia (NVDA - Free Report) . And Vishay’s outlook appears strong for 2021 and beyond.
Other Fundamentals
As we touched on at the outset, VSH hit new 52-week highs on Tuesday of $25.22 a share, even as many other tech stocks rest below their mid-February records. The stock was subject to some selling recently, but it quickly recovered from an early March pullback.
The nearby chart shows that Vishay shares have more than double their industry over the last six months, up roughly 60%. This run is part of a 90% climb over the past year to match the Semiconductor market.
Investors should note that VSH has lagged the broader tech sector over the last five years, up 100% vs. 150%. But the stock has managed to match the S&P 500 during this stretch.
Along with its solid performance that does include some significant ups and downs, it provides solid value compared to its industry. At 1.2X forward 12-month sales, VSH trades at a discount to its own year-long highs and well beneath its industry’s 5X average.
The company’s valuation is even better when we look at forward earnings, with it trading at a 30% discount to its industry and a 15% discount to its own year-long highs despite its stock sitting at new highs. VSH also sits below overbought levels (70 or higher) in terms of RSI at 58.
Vishay is part of the Semiconductor – Discretes space that is in the top 10% of our 250 Zacks industries at the moment. The stock also rocks an “A” grade for Value and a “B” for Growth in our Style Scores system.
Plus, the company’s dividend is currently yielding 1.52%. This tops its industry’s 1.42% average and the S&P 500’s, while coming in just below the recently-climbing 10-year U.S. Treasury.
Bottom Line
Zacks estimates call for the company’s revenue to climb over 18% in 2021 and another 5% in FY22 to reach $3.10 billion and help it surpass its FY18 levels. Better yet, its adjusted earnings are projected to jump by 88% to reach $1.73 a share, with FY22 set to climb another 11% higher.
Meanwhile, Vishay’s earnings revisions have turned far more positive since its early Feb. release, with its FY21 consensus estimate up 32%. This strength helps VSH grab a Zacks Rank #1 (Strong Buy) at the moment.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>