U.S. equities were largely in a holding pattern on Monday as investors await the outcome of the Federal Reserve’s latest policy meeting. Officials are in the midst of their “blackout period” but the market is comfortable in its expectation of at least a quarter-point cut in light of uneven global economic data.
Amid the waiting, the tried-and-true strategy of piling into technology stocks is in effect. Names like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) led the way higher Monday on the combination of seemingly unstoppable high-margin growth and the safety of following the herd into these mega-cap names.
But another area of the market — semiconductor stocks — is perking up nicely as investors look through to what an interest rate cut would mean for global growth and industrial output. With pretty much every manufactured good including some level of computational smarts these days, this will likely be a boon to chipmakers. Here are four semiconductor stocks worth a look:
Semiconductor Stocks to Buy: Intel (INTC)
Intel (NASDAQ:INTC) shares are breaking up and away from a two-month holding period near its 200-day moving average. Watch for the late April gap decline to be filled on the way to a challenge of the prior high near the $60-a-share threshold — with such a move worth a gain of roughly 20% from here. Analysts at Atlantic Equities recently started coverage with a belief the CPU market had reached an inflection point.
The company will next report results on July 25 after the close. Analysts are looking for earnings of 90 cents per share on revenues of $15.7 billion. When the company last reported on April 25, earnings of 89 cents beat estimates by two cents on $16 billion in revenues.
Applied Materials (AMAT)
Applied Materials (NASDAQ:AMAT) is enjoying a price surge to new highs, marking a 20%-plus rally off of the lows set back in May with a double-touch of the 200-day moving average. Shares were recently upgraded from neutral to buy by analysts at Goldman Sachs. DA Davidson analysts downgraded the stock on July 8, which was horrible timing, obviously.
The company will next report results on Aug. 15 after the close. Analysts are looking for earnings of 70 cents per share on revenues of $3.5 billion. When the company last reported on May 16, earnings of 70 cents per share beat estimates by four cents despite a 22.7% decline in revenues.
Lam Research (LRCX)
Shares of Lam Research (NASDAQ:LRCX) are challenging the prior highs set in late April, laying the groundwork for a push that could put an end to a long sideways channel going back to late 2017. Merely a run to the prior record high near $230 would be worth a gain of more than 11% from here.
The company will next report results on July 31 after the close. Analysts are looking for earnings of $3.43 per share on revenues of $2.4 billion. When the company last reported on April 24, earnings of $3.70 per share beat estimates by 31 cents on a 15.7% decline in revenues.
Micron Technology (MU)
Shares of Micron Technology (NASDAQ:MU) are breaking up and above year-to-date resistance near the $44-a-share level, returning to levels not seen since the summer of 2018. Watch for a return to the prior high near $65, which would be worth a gain of nearly 40% from here. Shares were recently upgraded from neutral to buy by Goldman Sachs analysts.
The company will next report results on Sept. 19 after the close. Analysts are looking for earnings of 46 cents per share on revenues of $4.5 billion. When the company last reported on June 25, earnings of $1.05 beat estimates by 26 cents on a 38.6% decline in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
