U.S. large-cap stocks pushed to fresh record highs on Monday thanks to news of a potential trade deal reached with Mexico. That pushed the Nasdaq Composite above 8,000, while the Dow Jones Industrial Average crossed over the 26,000 level for the first time since Feb. 2.
Automaker stocks enjoyed a lift, and so did material stocks.
But looking at sector-level relative strength, semiconductors are rallying nicely on the news as well. After all, modern technology is rendering every new automobile an increasingly complex mobile computing platform that integrates everything from machine vision systems to advanced navigation systems and semi-autonomy capability.
The Market Vectors Semiconductor ETF (NYSEARCA:SMH) is up 2.2% in trading today to return to levels not seen since June. As a result, a number of fast-moving stocks in the area are preparing to jump higher. Here are seven semiconductor stocks worth a look for new money:
Semiconductor Stocks to Buy: Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) shares look ready to emerge from a three-month downtrend pattern, looking set to move above their 20-day moving average. Shares rallied powerfully into a high set in late 2017, but have struggled since then, falling 25% since. Watch for a rebound to close the selloff gap formed in early July.
AVGO will next report results on Sept. 6, after the close. Analysts are looking for earnings of $4.82-per-share on revenues of $5.1 billion. When the company last reported on June 7, earnings of $4.88 beat estimates by 14 cents on a 19.4% rise in revenue.
Semiconductor Stocks to Buy: Intel (INTC)
Intel (NASDAQ:INTC) shares are rising up and out of a two-month consolidation range and look set for another run at the 50-day moving average, which proved intractable back in late July. INTC stock is shrugging off a downgrade from Cowen analysts back on Aug. 13, spurred by doubts over its silicon roadmap.
The company will next report results on Oct. 25, after the close. Analysts are looking for earnings of $1.15-per-share on revenues of $18.1 billion. When the company last reported on July 26, earnings of $1.04-per-share beat estimates by 7 cents on a 14.9% rise in revenues.
Semiconductor Stocks to Buy: AU Optronics (AUO)
AU Optronics (NYSE:AUO) shares are rising up to exit a multi-week consolidation range and are ready to rally back toward highs seen in early August. As such, AUO is setting up for a run at the highs seen earlier in the year. The stock continues to work back toward the highs above $5, which were set back in early 2015 after recovering from a loss of some 60% in to the lows set in 2016.
The company will next report results on Oct. 25, before the bell. Analysts are looking for earnings of 22-cents-per-share on revenues of $78.2 billion. When the company last reported on July 26, earnings of 13-cents-per-share beat estimates by 3 cents on an 11.1% decline in revenues.
Semiconductor Stocks to Buy: FormFactor (FORM)
FormFactor (NASDAQ:FORM) shares are rising up and over their 200-day moving average, testing the upper end of their year-to-date trading range. Resistance near $15.50 looms, which would open up a run at the late 2017 highs near $18. The company designs and sells probe cards used to test semiconductor devices.
The company will next report results on Oct. 31, after the close. Analysts are looking for earnings of 24-cents-per-share on revenues of $134.5 million. When the company last reported on Aug. 1, earnings of 27-cents-per-share beat estimates by 4 cents on a 5.9% decline in revenue from the year-ago period.
Semiconductor Stocks to Buy: Amkor Technology (AMKR)
Amkor Technology (NASDAQ:AMKR) shares are testing above their 50-day moving average, threatening to rise up away from a base of support going back to April. Watch for a run at the 200-day moving average. The company provides semiconductor packaging and test services to semiconductor companies.
The company will next report results on Oct. 29, after the close. Analysts are looking for earnings of 18-cents-per-share on revenues of $1.1 billion. When the company last reported on July 30, earnings of 14-cents-per-share beat estimates by 9 cents on a 5.8% rise in revenues.
Semiconductor Stocks to Buy: Lam Research (LRCX)
Lam Research (NASDAQ:LRCX) shares are testing above their 50-day moving average, setting up another run at resistance near its 200-day average near $190, which would be worth a 7%+ gain from here. Shares have been in a holding pattern since November and they are down more than 25% from the highs seen back in May.
The company will next report results on October 25, after the close. Analysts are looking for earnings of $3.20-per-share on revenues of $2.3 billion. When the company last reported on July 26, earnings of $5.31-per-share beat estimates by 37 cents on a 33.3% rise in revenues.
Semiconductor Stocks to Buy: Resonant (RESN)
Resonant (NASDAQ:RESN) specializes in the development of filters for radio frequency systems used in mobile phones in the United States. Its products include single-band and multiplexer bands. Shares are making another attempt at its 200-day moving average, setting up a possible return to its June highs for a gain of more than 35% from current levels.
The company was initiated with a Buy rating by analysts at Needham back in March, who were optimistic about the double-digit growth rates enjoyed by the frequency band market.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
