3 Stocks to Buy as the Semiconductor Shortage Persists By StockNews

3 Stocks to Buy as the Semiconductor Shortage Persists By StockNews

© Reuters. 3 Stocks to Buy as the Semiconductor Shortage Persists

Applied Materials (NASDAQ:), Broadcom (NASDAQ:), and Texas Instruments (NASDAQ:) are 3 semiconductor stocks that are worth buying as the semiconductor supply crunch continues.For over a year, semiconductors have been one of the leading industries pushing this bull market higher. This is evident from the sector’s outperformance in addition to impressive earnings growth by many companies in the industry. Since the March 2020 low, the VanEck Vectors Semiconductors ETF (SMH) is up 163%, while the S&P 500 is up 94% over the same timeframe.

Even more interesting is that many of the leading companies in the industry have seen their price-to-earnings ratios decline over the past year, as earnings growth has outpaced stock price appreciation. Notably, this is not the case for the S&P 500 which has seen significant multiple expansion.

Like a lot of tech and growth stocks, semiconductors have underperformed since mid-February. Unlike many of those stocks, semiconductor stocks have continued to post strong earnings reports and look poised to start outperforming once again. 3 semiconductor stocks that investors should consider buying are Applied Materials (AMAT), Broadcom (AVGO), and Texas Instruments (TXN).

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: