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Marc Chaikin
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After more than 40 years on Wall Street, Marc Chaikin founded Chaikin Analytics LLC in 2009 to deliver proven stock analytics to financial service professionals and individual investors. With the Chaikin Power Gauge, an alpha-generating quantitative model as its centerpiece, Chaikin Analytics... More
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Chaikin Analytics LLC
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Chaikin Power Gauge Stock Rating Blog
  • Five Attractive Semiconductor Stocks with High ROI and Strong Chaikin Power Gauge Ratings 0 comments
    Nov 2, 2010 4:36 PM | about stocks: ROG, JKS, MRVL, QLGC, JASO
    The Semiconductor group has shown increasing relative strength in the past four weeks. We have screened our data base of 5000 stocks to find these five Semiconductor stocks with strong Chaikin Power Gauge ratings and a high return on invested capital.

    Analysts have become increasingly bullish on these stocks and they have been outperforming the Semiconductor Group as well as the market. Not surprisingly, given the rapid pace Globalization has taken effect on the Semiconductor industry, two of these five stocks are headquartered outside the United States, in China.

    As a final filter we looked for companies within the group with a relatively low PEG ratio under 1.2 which has historically been an excellent value metric for the Semiconductor group.

    1. Rogers Corporation (NYSE:ROG): Rogers Corp. has a high ROI and strong cash flows and the company has no long-term debt making it very attractive from a financial perspective. Positive earnings surprises in recent quarters have led analysts to raise their earnings estimates for the coming year which has led to strong price/volume activity. Strong Chaikin Money Flow and positive relative strength suggest the possibility of further upside potential.

    2. JinkoSolar Holding Company Ltd (NYSE:JKS): This is the first of our two international plays this week. High profit margins and a healthy ROI bring our attention to this chinese solar energy company. A very low PEG ratio, high earnings growth and a strong volume trend position Jinko to continue outperforming the market. Any mild correction in the market will provide an opportunity to buy into this China play in the near future.

    3. Marvell Technology Group Ltd (NASDAQ:MRVL): Marvell Technology has a strong cash position and virtually no debt. Excellent profit margins and ROI in the last 12 months, and a very low PEG ratio suggest that this well managed company is positioned to follow through on its recent price breakout and continue to make new highs in the weeks ahead. 

    4. QLogic Corporation (NASDAQ:QLGC): QLogic boasts a healthy balance sheet with a strong cash position, solid free cash flows and no long-term debt. An attractive PEG ratio and a healthy ROI indicate a strong management team. Recent Insider buying and increasingly bullish analyst opinions show bullish near term interest in the company. A recent pullback is a potential buying opportunity for the long term if you are looking for an attractive investment in the Semiconductor group.

    5. JA Solar Holdings Co Ltd (NASDAQ:JASO): The second of the two chinese companies we like this week, JA Solar has also has a high ROI and high profit margins. It has been consistently outperforming its industry and the market, and still has a low projected P/E ratio. Analysts have raised their earnings estimates for the coming year leading to a strong price/volume activity. If management continues to deliver consistent earnings surprises, we expect the current upward trend to continue in the coming year.

    Disclosure: No positions
    Stocks: ROG, JKS, MRVL, QLGC, JASO
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