Market Overview

Ranking Needham's Latest Semiconductor Downgrades By PEG Ratio


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. Benzinga used the earnings estimated by analysts over the next 12 months.

For the stocks Needham downgraded, Benzinga ranked them below according to PEG Ratios.

MaxLinear, Inc. (NYSE: MXL) is an outlier in our group with a -4.61 PEG Ratio due to negative EPS.
RF Micro Devices, Inc. (NASDAQ: RFMD) PEG Ratio: 0.90
Skyworks Solutions Inc (NASDAQ: SWKS) PEG Ratio: 0.96
M/A-COM Technology Solutions Holdings (NASDAQ: MTSI) PEG Ratio: 1.09
Ambarella Inc (NASDAQ: AMBA) PEG Ratio: 2.65

TriQuint Semiconductor (NASDAQ: TQNT) PEG Ratio: 3.28

Cavium Inc (NASDAQ: CAVM) PEG Ratio: 4.12

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

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

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