Market Overview

Three Semiconductor Stocks Analysts Are Keen On (UTEK, OSIS, SNPS)

Here is a quick look three top-performing semiconductor-related stocks with a consensus recommendation of analysts of Strong Buy: Ultratech (NASDAQ: UTEK), OSI Systems (NASDAQ: OSIS) and Synopsis (NASDAQ: SNPS).

Ultratech

This San Jose, California-based company supplies photolithography systems to semiconductor device manufacturers and to nanotechnology manufacturers. Its market capitalization is near $872 million and its long-term earnings per share (EPS) growth forecast is about 16 percent. The price-to-earnings (P/E) ratio is higher than the industry average, but so is the operating margin. Short interest is about three percent of the float. All four analysts who follow the stock and were surveyed by Thomson/First Call rate it at Buy or Strong Buy -- none recommend selling shares. Their mean price target, or where they expect the share price to go, is more than 18 percent higher than the current share price, a level it has not reached since 1995. The stock is up more than 34 percent year to date. Over the past six months, Ultratech has outperformed competitor Mattson Technology (NASDAQ: MTSN) and the Nasdaq.

OSI Systems

This company designs and manufactures electronic systems and components for homeland security, health care, defense and aerospace markets worldwide. It has a market cap of near $1.4 billion and it is headquartered in Hawthorne, California. The long-term EPS growth forecast is a healthy 37 percent, but the P/E ratio is higher than the industry average. Short interest is about 3.4 percent of the float. All four analysts who follow the stock recommend buying shares. Their mean price target is more than 12 percent higher than the current share price, as well as higher than the 52-week high. Shares surged more than 14 percent following the release of better-than-expected fiscal fourth-quarter results. They are nearly 50 percent higher year to date and reached a new 52-week high Wednesday. OSI Systems has outperformed competitor CTS (NYSE: CTS) and the Nasdaq over the past six months.

Synopsis

Based in Mountain View, California, this company provides core electronic design automation solutions primarily in the United States, Europe and the Asia-Pacific region. The market cap is about $5 billion and, like the others discussed here, it does not offer a dividend. Shares are trading near the multiyear high, reached in the wake of better-than-expected fiscal third-quarter earnings. The long-term EPS growth forecast is about 8.5 percent, but the operating margin is better than the industry average. Short interest is less than 1 percent of the float. All seven analysts surveyed recommend buying shares. They believe the stock has some room to run, as their mean price target is more than 8 percent higher than the current share price. The share price is more than 24 percent higher year to date. Over the past six months, the stock has outperformed the Nasdaq, but narrowly underperformed Cadence Design Systems (NASDAQ: CDNS).

Posted-In: Cadence Design Systems CTS Mattson Technology NASDAQ OSI systemsLong Ideas Short Ideas Trading Ideas Best of Benzinga

 

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