Seeking Alpha
Recommended for you:
-
dasdasdasdadas
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you prefer investing in stocks with strong trading momentum?

We screened the semiconductors industry for those rallying above their 20-day, 50-day, and 200-day moving averages.

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

To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing 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.

Click to enlarge

Tool provided by Kapitall (www.kapitall.com). More investing ideas on Kapitall Wire (wire.kapitall.com).

Do you think these stocks will continue rallying higher? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. FSI International Inc. (NASDAQ:FSII): Designs, manufactures, markets, and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. Market cap at $241.8M, most recent closing price at $6.17. The stock is rallying 28.84% above its 20-day moving average, 50.80% above its 50-day MA, and 55.16% above its 200-day MA. Revenue grew by 98.28% during the most recent quarter ($50.76M vs. $25.6M y/y). Inventory grew by -18.81% during the same time period ($37.08M vs. $45.67M y/y). Inventory, as a percentage of current assets, decreased from 47.82% to 32.74% during the most recent quarter (comparing 3 months ending 2012-05-26 to 3 months ending 2011-05-28).

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 $1.45B, most recent closing price at $72.90. The stock is rallying 6.84% above its 20-day moving average, 12.20% above its 50-day MA, and 25.60% above its 200-day MA. Revenue grew by 28.25% during the most recent quarter ($235.24M vs. $183.43M y/y). Inventory grew by 15.06% during the same time period ($195.18M vs. $169.63M y/y). Inventory, as a percentage of current assets, decreased from 41.85% to 40.4% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

3. Spreadtrum Communications Inc. (NASDAQ:SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap at $871.64M, most recent closing price at $18.99. The stock is rallying 5.24% above its 20-day moving average, 8.42% above its 50-day MA, and 9.69% above its 200-day MA. Revenue grew by 17.54% during the most recent quarter ($161.11M vs. $137.07M y/y). Inventory grew by -44.98% during the same time period ($62.91M vs. $114.33M y/y). Inventory, as a percentage of current assets, decreased from 24.69% to 13.94% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

4. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM): Engages in the computer-aided designing, manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices; and manufacturing masks. Market cap at $74.65B, most recent closing price at $14.40. The stock is rallying 1.17% above its 20-day moving average, 5.65% above its 50-day MA, and 5.60% above its 200-day MA. Revenue grew by 15.88% during the most recent quarter ($128,061M vs. $110,509M y/y). Inventory grew by -2.36% during the same time period ($30,780M vs. $31,523M y/y). Inventory, as a percentage of current assets, decreased from 13.% to 10.96% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

5. Siliconware Precision Industries Co. Ltd. (NASDAQ:SPIL): Provides semiconductor packaging and testing services worldwide. Market cap at $3.48B, most recent closing price at $5.59. The stock is rallying 3.73% above its 20-day moving average, 9.33% above its 50-day MA, and 8.28% above its 200-day MA. Revenue grew by 12.28% during the most recent quarter ($16,545.49M vs. $14,735.5M y/y). Inventory grew by -1.76% during the same time period ($3,806.39M vs. $3,874.55M y/y). Inventory, as a percentage of current assets, decreased from 12.9% to 10.69% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

6. Teradyne Inc. (NYSE:TER): Provides automatic test equipment products and services worldwide. Market cap at $2.95B, most recent closing price at $15.70. The stock is rallying 2.06% above its 20-day moving average, 8.21% above its 50-day MA, and 3.15% above its 200-day MA. Revenue grew by 33.56% during the most recent quarter ($548.28M vs. $410.52M y/y). Inventory grew by -2.56% during the same time period ($137.9M vs. $141.52M y/y). Inventory, as a percentage of current assets, decreased from 10.53% to 10.47% during the most recent quarter (comparing 3 months ending 2012-07-01 to 3 months ending 2011-07-03).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 6 Rallying Semiconductors With Strong Inventory Trends