Semiconductor PEG Ratios On Needham's Downgrades

Needham downgraded several semiconductor stocks Friday as the firm became more cautious on the sector.

Price/earnings to growth (PEG) ratios help traders compare the valuations of the stocks. A lower PEG ratio indicates a cheaper stock.

The PEG Ratio = Price/Earnings Ratio divided by the Annual EPS Growth. We are using the earnings estimated by analysts over the next 12 months.

For the stocks Needham downgraded we have ranked them below according to PEG Ratios.

MaxLinear, Inc. MXL is an outlier in our group with a -4.61 PEG Ratio due to negative EPS.

RF Micro Devices, Inc. RFMD PEG Ratio: 0.90

Skyworks Solutions Inc SWKS PEG Ratio: 0.96
 
M/A-COM Technology Solutions Holdings MTSI PEG Ratio: 1.09

Ambarella Inc AMBA PEG Ratio: 2.65


TriQuint Semiconductor TQNT PEG Ratio: 3.28



Cavium Inc CAVM PEG Ratio: 4.12


Exclusing MaxLinear, RF Micro Devices appears as the lowest priced stock in our group based on a PEG Ratio ranking.

All the above stocks were downgraded from Buy to Hold by Needham expect for Ambarella which was downgraded from Hold to Underperform.