4 Semiconductor Stocks With Excellent Growth Prospects

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Includes: AEIS, FSLR, MPWR, RBCN
by: Kapitall

Tech stocks, and in particular semiconductor stocks, have lagged the rest of the market for most of 2011. If you think this sector might rebound over the coming months, this list may be a great starting point for your own analysis.

All of these companies are considered to be undervalued given the low PEG ratio at which they are trading (PEG < 1). With regards to their growth potential, all of these companies are outdoing their industry given the following growth related metrics:

- Projected EPS Growth Over the Next 5 Years
- Capital Spending Growth Over the Last 5 Years
- Capital Flow Growth Over the Last 5 Years

Considering this information, which of these stocks are you most bullish about?



1. Advanced Energy Industries, Inc. (NASDAQ:AEIS): Diversified Electronics Industry. Market cap of $705.57M. PEG at 0.79. Projected EPS growth at 16.67% vs. the industry average at 15.14%. Capex growth at 11.83% vs. the industry average at 2.28%. Cash flow growth at 28.02% vs. the industry average at 14.22%. The stock has gained 1.82% over the last year.

2. Rubicon Technology, Inc. (NASDAQ:RBCN): Semiconductor Industry. Market cap of $675.61M. PEG at 0.84. Projected EPS growth at 38.0% vs. the industry average at 15.14%. Capex growth at 83.54% vs. the industry average at 2.28%. Cash flow growth at 52.05% vs. the industry average at 14.22%. The stock is a short squeeze candidate, with a short float at 39.61% (equivalent to 10.09 days of average volume). The stock has had a couple of great days, gaining 6.42% over the last week.

3. First Solar, Inc. (NASDAQ:FSLR): Semiconductor Industry. Market cap of $13.14B. PEG at 0.94. Projected EPS growth at 22.75% vs. the industry average at 15.14%. Capex growth at 69.19% vs. the industry average at 2.28%. Cash flow growth at 203.29% vs. the industry average at 14.23%. The stock is a short squeeze candidate, with a short float at 27.5% (equivalent to 8.38 days of average volume). The stock has gained 20.86% over the last year.

4. Monolithic Power Systems Inc. (NASDAQ:MPWR): Semiconductor Industry. Market cap of $511.43M. PEG at 0.99. Projected EPS growth at 21.67% vs. the industry average at 15.14%. Capex growth at 64.73% vs. the industry average at 2.28%. Cash flow growth at 40.86% vs. the industry average at 14.22%. The stock has lost 36.55% over the last year.

*Growth rates sourced from Fidelity, other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.