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The Zacks Analyst Blog Highlights: ACM Research, Cirrus Logic, Amkor, Synaptics and Qorvo

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For Immediate Release

Chicago, IL –December 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ACM Research, Inc. (ACMR - Free Report) , Cirrus Logic, Inc. (CRUS - Free Report) , Amkor Technology, Inc. (AMKR - Free Report) , Synaptics Inc. (SYNA - Free Report) and Qorvo, Inc. (QRVO - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Chip Stock to Buy on Reports of U.S.-China Trade Agreement

Both the United States and China seem to have moved closer toward concluding a trade pact. After all, President Trump himself highlighted on a “big deal” happening with China, and even multiple sources confirmed a delay in tariff imposition on Chinese imports scheduled on Dec 15.

Completion of the phase one deal undoubtedly will drive semiconductor stocks higher, as these have significant exposure to the Chinese market.

A “Big Deal” Reportedly Makes Way

Dec 12, seems to have brought a series of good news for the Wall Street. Trump tweeted that the US is “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”

The Guardian cited that a source has informed that “the written agreement is still being formulated, but they have reached an agreement in principle.”

In fact, Bloomberg reported that Trump has given the settlement his approval. As a part of the agreement, the United States will likely reduce existing tariffs on $360 billion of Chinese goods and delay the 15% tariff imposition scheduled on Dec 15. China too has reportedly agreed to buy agricultural goods of $40 billion in return of the tariff reduction and delay.

Multiple sources flashed these positive developments and instilled optimism among investors. This in turn boosted the S&P 500 and the Nasdaq Composite indexes to close at new record highs. The major benchmarks reached intraday records, for the first time since Nov 27.

Chip Stocks to Rally

The 17-month long U.S.-China trade war has weighed on chipmakers heavily. Companies like Texas Instruments and Nvidia had seen their stocks declining by nearly 5% on a single day due to the tariff tussle. American semiconductor firms depend largely on Chinese firms for the sale of their finished products.

According to a Morgan Stanley strategist, chipmakers generate more than 50% of their revenues from China. Almost 13% of Micron’s revenues in the first six months of this year came from Huawei. But with the blacklisting of Huawei, Micron lost its valuable customers and sales were affected. Micron and similar stocks that cater to Huawei Technologies also trended down. However, shares of Micron rose 3.5% on Dec 12 on reports of a deal. 

The news flashes also boosted chipmaker stocks and pushed both VanEck Vectors Semiconductor ETF (SMH - Free Report) and iShares PHLX Semiconductor ETF (SOXX - Free Report) up more than 2.5%.

Buy These 5 Chip Stocks Now

Any positive development on the trade front will certainly boost chipmakers. Hence we have shortlisted five such stocks that flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ACM Research, Inc. develops, manufactures and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips. The company’s expected earnings growth rate for the current year is 89.1% compared with the Zacks Electronics - Semiconductors industry’s projected earnings growth of 2.3%. The Zacks Consensus Estimate for the company’s current-year earnings has advanced 40.5% over the past 60 days. ACM Research has outperformed the industry in the past year (+49.7% versus +37.5%).

Cirrus Logic, Inc. develops, manufactures and markets analog, mixed-signal and audio DSP integrated circuits. The company’s expected earnings growth rate for the current year is 28.4% compared with the Zacks Electronics – Semiconductor industry’s projected earnings growth of 2.3%. The Zacks Consensus Estimate for the company’s current-year earnings has advanced 21.5% over the past 60 days. Cirrus Logic has outperformed the industry in the past year (+107.3% versus +37.5%).

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services. The company’s expected earnings growth rate for the next year is 100% compared with the Zacks Electronics – Semiconductor industry’s projected earnings growth of 11.2%. The Zacks Consensus Estimate for the company’s current-year earnings has advanced more than 100% over the past 60 days. Amkor Technology has outperformed the industry in the past year (+96% versus +37.6%).

Synaptics Inc. develops, markets and sells intuitive human interface solutions for electronic devices and products. The company’s expected earnings growth rate for the current year is 1%. The Zacks Consensus Estimate for the company’s current-year earnings has advanced 30.3% over the past 60 days. Synaptics has outperformed the Electronics – Semiconductors industry in the past year (+56% versus +37.5%).

Qorvo, Inc. provides radio frequency solutions and technologies for smartphones and other mobile devices, defense and aerospace, and Internet of Things applications. The company’s expected earnings growth rate for the next year is nearly 19%. The Zacks Consensus Estimate for the company’s current-year earnings has advanced 11.8% over the past 60 days. Qorvo has outperformed the Semiconductors - Radio Frequency industry in the past year (+89.8% versus +60.5%).

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