3 High-Growth Semiconductors With Strong Sales Trends

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 |  Includes: MLNX, NPTN, OSIS
by: Kapitall

Interested in the high growth prospects of the semiconductor industry? For a closer look at semiconductor stocks with particularly strong sales trends, we ran a screen.

We began by screening the semiconductors industry for stocks with high growth, with 5-year projected EPS growth above 15%.

We then screened for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

Do you think these stocks have strong sales trends? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. Mellanox Technologies, Ltd. (NASDAQ:MLNX): Engages in the design, development, marketing, and sale of interconnect products primarily in North America, Israel, Europe, and Asia. Market cap at $2.39B, most recent closing price at $58.03. 5-year projected EPS growth at 20.00%. Revenue grew by 61.17% during the most recent quarter ($88.74M vs. $55.06M y/y). Accounts receivable grew by 22.55% during the same time period ($47.11M vs. $38.44M y/y). Receivables, as a percentage of current assets, decreased from 25.17% to 13.41% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. OSI Systems, Inc. (NASDAQ:OSIS): Designs, manufactures, and sells specialized electronic systems and components for applications in homeland security, healthcare, defense, and aerospace markets worldwide. Market cap at $1.31B, most recent closing price at $64.79. 5-year projected EPS growth at 37.00%. Revenue grew by 19.16% during the most recent quarter ($208.44M vs. $174.93M y/y). Accounts receivable grew by 12.41% during the same time period ($157.83M vs. $140.4M y/y). Receivables, as a percentage of current assets, decreased from 37.75% to 32.48% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. NeoPhotonics Corporation (NYSE:NPTN): Engages in the design and manufacture of photonic integrated circuit based modules and subsystems for bandwidth-intensive, high-speed communications networks. Market cap at $127.16M, most recent closing price at $4.23. 5-year projected EPS growth at 15.75%. Revenue grew by 8.4% during the most recent quarter ($54.22M vs. $50.02M y/y). Accounts receivable grew by -8.34% during the same time period ($59.66M vs. $65.09M y/y). Receivables, as a percentage of current assets, decreased from 34.28% to 30.98% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, all 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.