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Vishay (VSH) Expands Portfolio With Sprague TX3 Capacitors

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Vishay Intertechnology (VSH - Free Report) unveiled the Vishay Sprague TX3, a series of TANTAMOUNT surface-mount solid tantalum molded chip capacitors for electronic detonation systems.

The capacitors boast low direct current leakage values, and its tantalum anode technology ensures stable performance in harsh environments.

Vishay is expected to gain solid traction across mining and demolition applications on the back of the Vishay Sprague TX3 series.

Moreover, the recent launch will enable Vishay to capitalize on the solid growth opportunity present in the global capacitor market which as per a Mordor Intelligence report, is expected to hit $25.21 billion in 2024 and reach $33.57 billion by 2029, registering a CAGR of 5.9% between 2024 and 2029.

Year-to-Date Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

Portfolio Strength: Key Catalyst

The latest move bodes well for Vishay’s increasing efforts to strengthen its overall product portfolio.

Vishay recently launched Gen 3 1200 V silicon carbide (SiC) Schottky diodes. The diodes boast high surge current robustness, low forward voltage drop, capacitive charge and reverse leakage current, increasing efficiency and reliability in switching power designs.

The company also acquired a precision thermistors company, Ametherm, as part of its strategy to expand its resistors offering by integrating Ametherm’s small package, high-quality inrush current limiters and NTC temperature sensors into its resistors product line.

Vishay launched the Dale IHLE-4040DDEW-5A, expanding its IHLE series of low-profile, high-current inductors. The newly launched inductor is expected to gain solid momentum across entertainment/navigation systems, LED drivers and motors, automotive domain control units and other noise-sensitive applications.

It recently introduced the Vishay Draloric AC05 WSZ and AC05-AT WSZ lead form for its AC and AC-AT series of 5 W resistors to expand its passive component offerings.

These efforts will continue to shape Vishay’s growth trajectory and drive customer momentum across various end markets, which, in turn, will likely aid the overall financial performance of the company in the near term.

However, growing inventory adjustments, contracting lead times and a softening demand environment across industrial end markets remain major concerns for the company. Vishay’s shares have lost 6.4% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 28.7%.

The Zacks Consensus Estimate for 2024 revenues is pegged at $3.1 billion, indicating a decline of 10% year over year.

The consensus mark for 2024 earnings is pegged at 87 cents per share, indicating a 64.3% decline from the year-ago figure. The figure has been revised downward by 20.9% in the past 60 days.

Zacks Rank & Stocks to Consider

Currently, Vishay carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Garmin (GRMN - Free Report) and Apple (AAPL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks’ shares have gained 42.1% in the year-to-date period. The long-term earnings growth rate for ANET is 16.07%.

Garmin’s shares have gained 26.6% in the year-to-date period. The long-term earnings growth rate for GRMN is currently projected at 8.04%.

Apple shares have gained 20.1% in the year-to-date period. The long-term earnings growth rate for AAPL is 12.48%.

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