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Vishay (VSH) to Boost Resistor Segment With Barry Industries

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Vishay Intertechnology (VSH - Free Report) is leaving no stone unturned to strengthen the resistor segment on the back of strategic acquisitions.

The company recently entered into an agreement for the acquisition of Barry Industries in exchange for $21-million cash. This validates the abovementioned fact.

Barry Industries is an Attleboro, MA-based manufacturer of semiconductor packaging and resistive components for application in communication, defense, healthcare, commercial, and aerospace.

With the acquisition of Barry Industries, Vishay aims to expand its portfolio of high-frequency and high-power resistor technologies.

In addition, the acquisition will help VSH to cater to communication-related applications in defense, telecom infrastructure and automotive markets.

Barry Industries will be combined with the company’s Resistors business segment.

The underlined acquisition is expected to be completed on Dec 31, 2021.

Resistor Segment in Focus

In addition to the recent initiative, Vishay made an enhancement to the Vishay Draloric RCC1206 e3 thick film chip resistor by offering a higher power rating of 0.5 W in the 1206 case size.

Additionally, the company unveiled the Vishay Draloric RCV-AT e3 series of thick film chip resistors that operate at high voltages and efficiently use board space.

Further, it introduced a high precision thin film wraparound chip resistor to cater to applications in aerospace, industrial, medical and military markets.

We note that the abovementioned efforts and the latest buyout initiative are likely to bolster the resistor segment, which has become an integral part of the company.

In third-quarter 2021, the segment generated revenues of $181 million, which accounted for 22% of total revenues. Also, segment revenues increased 24% year over year.

Expanding Portfolio of Solutions

Vishay has been making strong efforts to expand its overall portfolio of offerings on the back of strategic acquisitions and new product introductions. The recent effort is a step forward in this direction.

Apart from the latest move, Vishay unveiled the T24 series comprising HI-TMP surface-mount wet tantalum capacitors that are suitable for aerospace radar, oil exploration and military applications.

Additionally, Vishay unveiled 30 V n-channel TrenchFET Gen V power MOSFET to provide high-power density and efficiency for isolated as well as non-isolated topologies.

Further, Vishay’s launch of an integrated proximity sensor that consumes less power and compensates for high temperature remains noteworthy.

We believe that these endeavors will continue to shape its growth trajectory and sustain momentum in various end-markets served.

Zacks Rank & Stocks to Consider

Currently, Vishay carries a Zacks Rank #3 (Hold).

Investors interested in the broader technology sector can consider stocks like Advanced Micro Devices (AMD - Free Report) , Mimecast Limited and Nova Measuring Instruments (NVMI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advanced Micro Devices has gained 51.2% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 46.2%.

Mimecast has gained 39% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 35%.

Nova Measuring Instruments has gained 81.9% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 32.2%.

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