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With technology companies taking the brunt of the market downturn amidst inflation concerns, there are certainly opportunities brewing. Many semiconductor stocks have been hit the hardest as consumers start to stray away from buying phones, televisions, computers, and other tech products. The semiconductor industry is historically cyclical and many chip companies are facing the start of a slowdown, with Nvidia and others making headlines recently.
This backdrop has created opportunities in quite a few semiconductor stocks, many of which still have rising earnings estimate revisions. Let’s take a closer look at three highly-ranked semiconductor stocks that longer-term investors might want to consider.
The first semiconductor stock on the list is Lattice Semiconductor Corporation (LSCC - Free Report) . Lattice Semiconductor designs, develops, and markets high performance programmable logic devices and development software.
LSCC is a low power programmable leader that solves customer problems across the network, from the edge of the cloud, in the growing communications, computing, industrial, automotive and consumer markets.
LSCC currently sports a Zacks Rank #1 (Strong Buy) with its EPS estimate revisions on the rise. Lattice Semiconductors earnings are expected to climb 58% to $1.68 a share in 2022, based on Zacks estimates. Fiscal 2023 calls for another 18% earnings growth. Top line growth is expected as well, with sales set to jump 25% this year and another 13% in FY23 to $734.3 million.
Year to date LSCC is down 32% to underperform the S&P 500, which is down 17%. The Nasdaq in comparison is down 25% this year, with the biggest laggards being semiconductors. Lattice Semiconductors’ peer group has fallen 37%. However, over the last five years LSCC has climbed a staggering 800% to outperform the benchmark.
Image Source: Zacks Investment Research
Lattice Semiconductor currently trades around $51 a share, nearly 40% below its 52-week highs. LSCC has a forward P/E of 31X. The industry average is 14X, but the rising EPS estimates support investors who may be willing to pay a premium for LSCC. Plus, it’s trading well off its decade-long highs of 97X and not too far above its 23.5X median.
It is also important to note that LSCC’s Electronics – Semiconductors Industry’s is in the top 35% of over 250 Zacks Industries.
Another name for investors to consider among semiconductor equities is Rambus Inc (RMBS - Free Report) . Rambus creates innovative hardware and software technologies, driving advancements from the data center to the mobile edge.
Rambus prides itself on making industry-leading chips and IP that advance data center connectivity and solve the bottleneck between memory and processing.
Rambus YTD performance has been considerably better than its semiconductor peers. RMBS is down 16% YTD vs. its peer group’s 37% drop.
Image Source: Zacks Investment Research
Rambus stock is 27% off its 52-week highs, trading around $24 a share. RMBS has a forward P/E of 15X. This is near its industry average of 14X, and below the S&P 500’s average of 17X. Better still, RMBS is trading at a discount to its five-year median of 18X and well off its highs during this stretch of 29.7X.
According to Zacks estimates, RMBS earnings are expected to jump 20% at $1.64 a share in 2022. Fiscal 2023 earnings are expected to rise another 3%. Rambus sales are projected to be up 22% this year and another 6% in FY23 to $590.9 million.
Rambus’ positive estimate revisions have landed RMBS a Zacks Rank # 1 (Strong Buy). Rambus has also posted an earnings surprise for seven consecutive quarters.
Taiwan Semiconductors doesn’t need too much of an introduction, as it was an investor favorite among semis less than a year ago. Taiwan Semiconductor is the world’s largest dedicated integrated circuit foundry. Taiwan Semiconductors’ integrated circuit foundry business includes process technology, design ecosystem support, mask technology, advanced packaging, and silicon stacking technology.
TSM has served about 535 customers and manufactured 12,302 products for various applications covering a variety of end markets including smartphones, high performance computing, IoT, automotive, and digital consumer electronics.
Taiwan Semiconductor is down 33% in 2022, but rising estimate revisions make the stock worth a look. TSM has a forward P/E 13X, which is also the industry average. From the nearby chart, we can also see that TSM’s current P/E of 13X is well below its five year high of 35X. This is also below the median during this time span of 20X.
Image Source: Zacks Investment Research
Trading 45% from its highs, rising earnings estimates should catch the attention of investors. Taiwan Semiconductor’s earnings are expected to climb 53% to $6.30 a share in 2022, based on Zacks estimates. Fiscal 2023 earnings are expected to grow another 3%. Top line growth is also expected, with sales projected to be up 37% this year and another 14% in FY23 to $88.97 billion.
Taiwan Semiconductors has beat earnings expectations for seven consecutive quarters. TSM currently lands a Zacks Rank # 1 (Strong Buy).
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3 Semiconductor Stocks Poised for Growth
With technology companies taking the brunt of the market downturn amidst inflation concerns, there are certainly opportunities brewing. Many semiconductor stocks have been hit the hardest as consumers start to stray away from buying phones, televisions, computers, and other tech products. The semiconductor industry is historically cyclical and many chip companies are facing the start of a slowdown, with Nvidia and others making headlines recently.
This backdrop has created opportunities in quite a few semiconductor stocks, many of which still have rising earnings estimate revisions. Let’s take a closer look at three highly-ranked semiconductor stocks that longer-term investors might want to consider.
Lattice Semiconductor ((LSCC - Free Report) )
The first semiconductor stock on the list is Lattice Semiconductor Corporation (LSCC - Free Report) . Lattice Semiconductor designs, develops, and markets high performance programmable logic devices and development software.
LSCC is a low power programmable leader that solves customer problems across the network, from the edge of the cloud, in the growing communications, computing, industrial, automotive and consumer markets.
LSCC currently sports a Zacks Rank #1 (Strong Buy) with its EPS estimate revisions on the rise. Lattice Semiconductors earnings are expected to climb 58% to $1.68 a share in 2022, based on Zacks estimates. Fiscal 2023 calls for another 18% earnings growth. Top line growth is expected as well, with sales set to jump 25% this year and another 13% in FY23 to $734.3 million.
Year to date LSCC is down 32% to underperform the S&P 500, which is down 17%. The Nasdaq in comparison is down 25% this year, with the biggest laggards being semiconductors. Lattice Semiconductors’ peer group has fallen 37%. However, over the last five years LSCC has climbed a staggering 800% to outperform the benchmark.
Image Source: Zacks Investment Research
Lattice Semiconductor currently trades around $51 a share, nearly 40% below its 52-week highs. LSCC has a forward P/E of 31X. The industry average is 14X, but the rising EPS estimates support investors who may be willing to pay a premium for LSCC. Plus, it’s trading well off its decade-long highs of 97X and not too far above its 23.5X median.
It is also important to note that LSCC’s Electronics – Semiconductors Industry’s is in the top 35% of over 250 Zacks Industries.
Rambus ((RMBS - Free Report) )
Another name for investors to consider among semiconductor equities is Rambus Inc (RMBS - Free Report) . Rambus creates innovative hardware and software technologies, driving advancements from the data center to the mobile edge.
Rambus prides itself on making industry-leading chips and IP that advance data center connectivity and solve the bottleneck between memory and processing.
Rambus YTD performance has been considerably better than its semiconductor peers. RMBS is down 16% YTD vs. its peer group’s 37% drop.
Image Source: Zacks Investment Research
Rambus stock is 27% off its 52-week highs, trading around $24 a share. RMBS has a forward P/E of 15X. This is near its industry average of 14X, and below the S&P 500’s average of 17X. Better still, RMBS is trading at a discount to its five-year median of 18X and well off its highs during this stretch of 29.7X.
According to Zacks estimates, RMBS earnings are expected to jump 20% at $1.64 a share in 2022. Fiscal 2023 earnings are expected to rise another 3%. Rambus sales are projected to be up 22% this year and another 6% in FY23 to $590.9 million.
Rambus’ positive estimate revisions have landed RMBS a Zacks Rank # 1 (Strong Buy). Rambus has also posted an earnings surprise for seven consecutive quarters.
Taiwan Semiconductor ((TSM - Free Report) )
Taiwan Semiconductors doesn’t need too much of an introduction, as it was an investor favorite among semis less than a year ago. Taiwan Semiconductor is the world’s largest dedicated integrated circuit foundry. Taiwan Semiconductors’ integrated circuit foundry business includes process technology, design ecosystem support, mask technology, advanced packaging, and silicon stacking technology.
TSM has served about 535 customers and manufactured 12,302 products for various applications covering a variety of end markets including smartphones, high performance computing, IoT, automotive, and digital consumer electronics.
Taiwan Semiconductor is down 33% in 2022, but rising estimate revisions make the stock worth a look. TSM has a forward P/E 13X, which is also the industry average. From the nearby chart, we can also see that TSM’s current P/E of 13X is well below its five year high of 35X. This is also below the median during this time span of 20X.
Image Source: Zacks Investment Research
Trading 45% from its highs, rising earnings estimates should catch the attention of investors. Taiwan Semiconductor’s earnings are expected to climb 53% to $6.30 a share in 2022, based on Zacks estimates. Fiscal 2023 earnings are expected to grow another 3%. Top line growth is also expected, with sales projected to be up 37% this year and another 14% in FY23 to $88.97 billion.
Taiwan Semiconductors has beat earnings expectations for seven consecutive quarters. TSM currently lands a Zacks Rank # 1 (Strong Buy).