Six Semiconductor Stocks Trading Near 52-Week Highs
Novellus Systems (NASDAQ: NVLS) is scheduled to report its second-quarter 2011 results Monday after the closing bell, offering an early peek at what to expect from coming earnings from semiconductor companies. Analysts expect to see Novellus's per-share earnings up nearly 12% from a year ago but down about 27% from the previous quarter.
While Novellus does not make the following list, here are six semiconductor stocks that are trading in the neighborhood of their 52-week highs.
Avago Technologies (NASDAQ: AVGO): After recent meetings with Avago management, Citigroup raised its price target on the stock and Kaufman Brothers forecast a stronger second half 2011 for the company. The dividend yield is 0.8% and the long-term EPS growth forecast is 12.1%. The share price is more than 33% higher than at the beginning of the year. The stock has outperformed competitor Analog Devices (NYSE: ADI) and the industry average in that time.
Cypress Semiconductor (NASDAQ: CY): Cypress was recently named a top pick by Collins Stewart, and the company is expected to post year-over-year earnings and revenue growth on July 21. Analysts on average underestimated per-share earnings in the past five quarters, and the long-term EPS growth forecast is 16.1%. The stock appears poised to recapture the 52-week high of $23.95 per share from back in May; the share price is up more than 25% year to date.
EZchip Semiconductor (NASDAQ: EZCH): After seeing record revenues in the fourth quarter, EZchip reported disappointing revenue results in the first quarter, but expects the launch of its NP-4 to help it regain momentum. The long-term EPS growth forecast is 24.6%. The share price is more than 33% higher year to date; the stock has outperformed competitor Broadcom (NASDAQ: BRCM) and the semiconductor equipment industry average, as well as the broader markets, in that time.
Intel (NASDAQ: INTC): Intel seems poised to benefit from corporations that can no longer delay enterprise equipment purchases, as well as Japanese companies rebuilding following the earthquake and tsunami in March. Intel has a dividend yield of 2.9% and a return on equity of 24.4%. The share price is nearly 12% higher than six months ago. The stock has outperformed competitors Advance Micro Devices (NYSE: AMD) and Texas Instruments (NYSE: TXN) in that time.
Varian Semiconductor Equipment (NASDAQ: VSEA): Applied Materials (NASDAQ: AMAT) agreed to acquire Varian back in May, and Varian is expected to post 40% EPS and revenue growth in its July 28 quarterly report. Short interest has risen since the takeover announcement and is now 3.7% of the float. The share price recently hit a multiyear high of $62.00 and ended last week more than 66% higher than at the beginning of the year.
Xlinx (NASDAQ: XLNX): This maker of programmable logic devices reported record revenue results for fiscal 2011, and its CFO recently bought 14,500 shares. Xilinx has a dividend yield of 1.8% and a return on equity of 15.0%. The long-term earnings per share growth forecast is 12.2%. Its P/E ratio is less than the industry average. Shares reach a multiyear high of $37.37 last week. The stock has outperformed its industry average, but underperformed rival Altera (NASDAQ: ALTR) year to date.
Bullish: Traders optimistic about the semiconductors industry also might want to consider the following trades:
- PowerShares Dynamic Semiconductors Portfolio (NYSE: PSI)
- SPDR S&P Semiconductor ETF (NYSE: XSD)
- ProShares Ultra Semiconductors (NYSE: USD)
Bearish: Traders pessimistic about the semiconductors industry may want to consider these alternate positions:
- ProShares UltraShort Semiconductors (NYSE: SSG)
- Direxion Daily Semiconductor Bear 3x Shares (NYSE: SOXS)
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