Maxim Integrated Products, Inc. (MXIM - Free Report) recently inked a catalog distribution agreement with CoreStaff Co., Ltd. The dealis effective Nov 3, 2017.
CoreStaff is one of Japan's largest online shopping sites. It distributes semiconductors, electronic parts, wireless sensors and module products. Based in Tokyo, the company was founded in 2000.
Per the deal, Maxim will provide integrated analog semiconductors to a wide range of customers in Japan. The financial terms of the agreement were not disclosed.
Share Price Movement
Over the past year, Maxim has outperformed the broader industry. The stock has gained 33.6%, compared with the 21.4% gain of the broader industry.
Maxim has a broad range of products that makes it possible to serve a diverse clientele. It has a highly profitable and well-diversified core business. Moreover, solid performances by industrial and automotive segments have led to stability in its core business. All these factors have together led to a surge in its share price.
The deal will help Maxim to leverage the strength of Tokyo-based CoreStaff’s technical expertise and supply chain distribution networks. This willenhance the supply of Maxim's high-performance analog semiconductors available onCoreStaff's online shopping site, Zaikostore.It will further expand Maxim’s presence in Japan, adding new customers to its list.
Shinichiro Yamazaki, president of Maxim Japan, said, “Through CoreStaff's unique business model such as its quality control system and optimal proposals using IT tools, we look forward to an expansion of new customers in Japan."
On the other hand, the deal will introduce Maxim’s wide range of analog semiconductor products to CoreStaff's distribution channel database, giving Japanese customers easy access to Maxim products.
Zacks Rank & Stocks to Consider
Currently, Maxim carries a Zacks Rank #3 (Hold).A few better-ranked stocks in the broader technology sector are Groupon Inc. (GRPN - Free Report) , PetMed Express, Inc. and SMART Global Holdings, Inc. (SGH - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings per share growth rate for Groupon, PetMed Express and SMART Global is projected at 10%, 10% and 15%, respectively.
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