SPRD is on tear. Spreadtrum Communications, Inc. (SPRD), through its subsidiaries, operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. This stock has gained nearly 60% in the month of October, and it is up 9% in the last week. Investors love this stock no matter what market events shake the rest of the equities.
SPRD’s momentum is strong, and despite the tumultuous nature of the market since Monday, October 31, it has made gains every day this week. Sabrient rates it a Buy. The Sabrient Growth Score is 98, and the Momentum Score (measuring price, earnings, and group momentum) is 94. (All scores are out of 100.)
With its earnings date on November 9, now may be a good time to enter a long position in this strong stock. In the last 30 days, EPS estimates have been revised upward for the current and the next quarter by 2 and 3 analysts respectively. Its growth estimate for the current quarter is 73%. Yahoo’s mean recommendation is 1.5 (1.0 being the best buy recommendation). Today it passed its median price target of 27.50. Its high price target is 33.00.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SPRD over the next 72 hours.