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After AMBA Earnings, Check Out These 3 Semiconductors Stocks Instead
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Despite posting beats on both the top and bottom lines, popular semiconductor maker Ambarella (AMBA - Free Report) is slumping following its latest earnings release. With weak guidance sending shares down more than 10%, investors may start to look elsewhere for solid semiconductor stocks.
AMBA Guidance Disappoints
For the third quarter, AMBA posted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 68 cents per share handily. The company saw revenue figures of $100.5 million, which also beat our consensus estimate of $96 million. Total revenue was up 7.8% year-over-year.
However, looking ahead to Q4, Ambarella expects revenue to be in the range of $84 million to $87 million. This comes in below our current consensus estimate of $88.43 million (Also read: Despite Earnings Beat, Ambarella Stock Tumbles On Weak Guidance).
Other Semiconductors to Pick
Luckily for investors interested in semiconductors, the “Electronics – Semiconductors” business that AMBA falls into is still home to several strong stocks and currently sits in the top 13% of the Zacks Industry Rank.
One stock to look at would be Applied Optoelectronics (AAOI - Free Report) . This semiconductor maker is currently a Zacks Rank #1 (Strong Buy) thanks to its impressive earnings-related metrics. Its current-quarter Zacks Consensus Estimate has gained 17 cents over the last 30 days, and our current figures indicate that the company could post EPS growth of 131.58% on revenue growth of 45.77% this quarter.
Investors should also check out Amkor Technology (AMKR - Free Report) . Thanks to its “A” grades for Value and Growth, Amkor has earned an overall VGM grade of “A.” Additionally, the company has seen its current-quarter and next-quarter Zacks Consensus Estimates gain four cents and seven cents, respectively, over the past 60 days.
Finally, another solid semiconductor pick right now could be Cirrus Logic (CRUS - Free Report) . This company has seen massive estimate revision over the past 60 days, with its current-quarter Zacks Consensus Estimate gaining 42 cents in that period. Also, we expect Cirrus to impressive growth this quarter; our current consensus estimates would represent EPS growth of 118.57% on revenue growth of 42.43%.
Bottom Line
Although Ambarella was once one of the hottest stocks in the semiconductor industry, it may be a bit too volatile and risky for some investors right now. Nevertheless, plenty of solid semiconductor stocks still exist, and interested investors should definitely check these three out!
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>
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After AMBA Earnings, Check Out These 3 Semiconductors Stocks Instead
Despite posting beats on both the top and bottom lines, popular semiconductor maker Ambarella (AMBA - Free Report) is slumping following its latest earnings release. With weak guidance sending shares down more than 10%, investors may start to look elsewhere for solid semiconductor stocks.
AMBA Guidance Disappoints
For the third quarter, AMBA posted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 68 cents per share handily. The company saw revenue figures of $100.5 million, which also beat our consensus estimate of $96 million. Total revenue was up 7.8% year-over-year.
However, looking ahead to Q4, Ambarella expects revenue to be in the range of $84 million to $87 million. This comes in below our current consensus estimate of $88.43 million (Also read: Despite Earnings Beat, Ambarella Stock Tumbles On Weak Guidance).
Other Semiconductors to Pick
Luckily for investors interested in semiconductors, the “Electronics – Semiconductors” business that AMBA falls into is still home to several strong stocks and currently sits in the top 13% of the Zacks Industry Rank.
One stock to look at would be Applied Optoelectronics (AAOI - Free Report) . This semiconductor maker is currently a Zacks Rank #1 (Strong Buy) thanks to its impressive earnings-related metrics. Its current-quarter Zacks Consensus Estimate has gained 17 cents over the last 30 days, and our current figures indicate that the company could post EPS growth of 131.58% on revenue growth of 45.77% this quarter.
Investors should also check out Amkor Technology (AMKR - Free Report) . Thanks to its “A” grades for Value and Growth, Amkor has earned an overall VGM grade of “A.” Additionally, the company has seen its current-quarter and next-quarter Zacks Consensus Estimates gain four cents and seven cents, respectively, over the past 60 days.
Finally, another solid semiconductor pick right now could be Cirrus Logic (CRUS - Free Report) . This company has seen massive estimate revision over the past 60 days, with its current-quarter Zacks Consensus Estimate gaining 42 cents in that period. Also, we expect Cirrus to impressive growth this quarter; our current consensus estimates would represent EPS growth of 118.57% on revenue growth of 42.43%.
Bottom Line
Although Ambarella was once one of the hottest stocks in the semiconductor industry, it may be a bit too volatile and risky for some investors right now. Nevertheless, plenty of solid semiconductor stocks still exist, and interested investors should definitely check these three out!
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>