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Do you consider a company's sales trends when evaluating stocks? We ran a screen on the semiconductors industry for stocks seeing discouraging sales trends.

We began by screening the semiconductor sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

We then screened for stocks with weaker sales trends by comparing growth in revenue to growth in inventory over the last year. We screened for stocks with negative sales trends, with faster growth in inventory than revenue over the last year. Since inventory represents the portion of goods not yet sold, faster growth in inventory than revenue is considered a discouraging sign.

To screen for weakening liquidity, we also only focused on those companies with inventory increasing as a percent of current assets.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall (kapitall.com).

Do you think the market is pricing in too much optimism on these names? Use this list as a starting point for your own analysis.

List sorted by change in revenue over the last year.

1. ASM International NV (NASDAQ:ASMI): Engages in researching, developing, manufacturing, marketing, and servicing equipment and materials used to produce semiconductor devices. Market cap at $1.99B, most recent closing price at $36.57. The stock is trading 7.75% above its 20-day moving average, 7.59% above its 50-day MA, and 20.77% above its 200-day MA. Revenue grew by -28.04% during the most recent quarter ($311.02M vs. $432.19M y/y). Inventory grew by -0.4% during the same time period ($377.64M vs. $379.15M y/y). Inventory, as a percentage of current assets, increased from 30.09% to 32.25% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. Canadian Solar Inc. (NASDAQ:CSIQ): Engages in the design, development, manufacture, and sale of solar power products in Canada and internationally. Market cap at $141.13M, most recent closing price at $3.27. The stock is trading 20.21% above its 20-day moving average, 16.85% above its 50-day MA, and 12.55% above its 200-day MA. Revenue grew by -26.52% during the most recent quarter ($325.8M vs. $443.4M y/y). Inventory grew by 27.64% during the same time period ($389.89M vs. $305.47M y/y). Inventory, as a percentage of current assets, increased from 24.59% to 27.72% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. Spansion Inc. (NYSE:CODE): Engages in the design, development, manufacture, and sale of flash memory semiconductors worldwide. Market cap at $652.36M, most recent closing price at $10.58. The stock is trading 4.66% above its 20-day moving average, 3.59% above its 50-day MA, and 2.82% above its 200-day MA. Revenue grew by -25.32% during the most recent quarter ($218.76M vs. $292.94M y/y). Inventory grew by -10.5% during the same time period ($159.69M vs. $178.43M y/y). Inventory, as a percentage of current assets, increased from 25.15% to 27.83% during the most recent quarter (comparing 13 weeks ending 2012-03-25 to 13 weeks ending 2011-03-27).

4. ATMI Inc. (NASDAQ:ATMI): Supplies high-performance materials, materials packaging, and materials delivery systems with applications in the semiconductor, flat-panel display, and in the life sciences industries worldwide. Market cap at $640.95M, most recent closing price at $20.08. The stock is trading 4.69% above its 20-day moving average, 0.69% above its 50-day MA, and 1.11% above its 200-day MA. Revenue grew by -8.09% during the most recent quarter ($92.57M vs. $100.72M y/y). Inventory grew by 25.14% during the same time period ($82.42M vs. $65.86M y/y). Inventory, as a percentage of current assets, increased from 22.97% to 29.43% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

5. TriQuint Semiconductor, Inc. (TQNT): Supplies modules, components, and foundry services to communications companies worldwide. Market cap at $915.12M, most recent closing price at $5.43. The stock is trading 5.83% above its 20-day moving average, 7.58% above its 50-day MA, and 0.87% above its 200-day MA. Revenue grew by -3.38% during the most recent quarter ($216.73M vs. $224.32M y/y). Inventory grew by 16.88% during the same time period ($145.51M vs. $124.49M y/y). Inventory, as a percentage of current assets, increased from 22.78% to 28.45% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-04-02).

6. Skyworks Solutions Inc. (NASDAQ:SWKS): Offers analog and mixed signal semiconductors worldwide. Market cap at $5.2B, most recent closing price at $27.42. The stock is trading 4.27% above its 20-day moving average, 7.38% above its 50-day MA, and 25.63% above its 200-day MA. Revenue grew by 12.07% during the most recent quarter ($364.69M vs. $325.41M y/y). Inventory grew by 30.02% during the same time period ($196.56M vs. $151.18M y/y). Inventory, as a percentage of current assets, increased from 17.33% to 26.13% during the most recent quarter (comparing 13 weeks ending 2012-03-30 to 13 weeks ending 2011-04-01).

*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.

Source: 6 Rallying Semiconductor Stocks With Negative Inventory Trends