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Omnivision Technologies (NASDAQ:OVTI) is a blast from the past for me as it was one of the fundamentally strong new stocks that put in an incredible move during the 2003 powerful bull market. It was a great stock with great fundamentals back in 2003 and once again it is a well performing stock with great fundamentals.

Omnivision Technologies designs digital/analog image sensors for compact cameras used in mobile phones, notebook computers, and web cams and the demand for these products are very heavy right now and can completely be seen in recent earnings and sales reports. For the past three quarters, YOY EPS results have seen increases of 42%, 183%, and 160%. During the same time, sales have grown an extremely impressive 12%, 96%, and 76%.These numbers show no signs of slowing down either as 2010 and 2011 EPS estimates are for gains of 122% and 11% respectively.

History has proven that the best stocks in the stock market not only have great fundamentals but also come from a very strong group of fundamentally strong stocks. On this end, Omnivision is full of powerful friends like Cirrus Logic (NASDAQ:CRUS), Virage Logic (VIRL), A R M Holdings (NASDAQ:ARMH), Mindspeed (NASDAQ:MSPD), Integrated Silicon Solutions (NASDAQ:ISSI), Spreadtrum Communications (NASDAQ:SPRD), Lattice Semiconductor (NASDAQ:LSCC), Mellanox (NASDAQ:MLNX), Netlogic (NASDAQ:NETL), Atheros (NASDAQ:ATHR), Volterra Semiconductor (NASDAQ:VLTR), Pericom Semiconductor (NASDAQ:PSEM), Silicon Laboratories (NASDAQ:SLAB), G S I Technology (NASDAQ:GSIT), and so many other strong stocks within the Electronics-Semiconductor Fabless group. The stronger the group is the better the stock will do.

Omnivision Technologies is doing very well as the stock was able to breakout to a new 52-week high on Tuesday on strong volume and follow-through on those gains on Wednesday on very strong volume. I would like to go long Omnivision on the next lower volume pullback, either to the pivot point of the breakout (around the 20.50 area) or the 50 day moving average. Whichever area finds strong support for the stock to bounce off of. This is one of the better looking stock charts in this market right now and if the market can get any kind of volume behind it on this current move higher I would love to add this stock to my portfolio.

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Disclosure: No position

Source: Omnivision Technologies: A Strong Stock Amongst Strong Peers