Forget Micron (MU), Buy these Semiconductor Stocks Instead

Micron Technology ( MU )

 is one of the leaders in the semiconductor segment, no doubt.  However, its stock has seen better days.  The company has flourished over the past 3 years, with Micron's stock price surging 357.91% in that time.  However, the company's stock value has plummeted 23.07% since December 5.

The stock is a Zacks Rank #3 (Hold).  There have been 6 negative estimate revisions from analysts in the last 60 days.  90 days ago, our consensus estimate called for earnings of $0.92 per share for this quarter.  Since then, our consensus has gone down, now calling for EPS of $0.80. 

Obviously, positive momentum has not been on Micron's side.  Fortunately, the semiconductor segment is one which has several promising stocks to choose from.  Based on growth, valuation, and earnings statistics, we have found three companies which have a lot of potential in turning over significant profits for investors.

United Microelectronics Corporation- (UMC)

United Microelectronics is a global semiconductor foundry that engages in providing advanced technology and manufacturing for applications across major sectors of the IC industry.  The company is a Zacks Rank #1 (Strong Buy).  The company has a PE of 10.78. It also has a PEG of 0.54, suggesting that its growth is excellent for the price that it trades for. 

United Microelectronics has a trailing twelve month net profit margin of 8.41%, while the industry's is only 1.4%.  The company surprised last quarter, beating our EPS consensus estimate by 100%.  Our estimate called for an EPS of $0.03, but the company actually delivered earnings of $0.06 per share.  UMC reports its earnings on 4/29/15.

Mellanox Technologies- (MLNX)

Mellanox Technologies is a major supplier of end-to-end InfiniBand and Ethernet interconnect solutions and services for servers and storage.  The company is a Zacks Rank #1 (Strong Buy).  MLNX also has a PEG of 1.22. 
60 days ago, the earnings consensus for this quarter called for EPS of $0.20.  However, our EPS estimate for this quarter has since moved up, with a current consensus of $0.21.  Mellanox has surprised in each of the past four quarters, beating our EPS consensus each quarter by an average of 607.01%.  The company has an EPS growth rate for this year of 132.1%.  MLNX reports its earnings on 4/23/15.

Avago Technologies- (AVGO)

Avago Technologies develops and supplies analog, digital, mixed signal, and optoelectronics components and subsystems.  Analysts at Citigroup Inc (C) 

 ) have recently raised their price target on AVGO to $160.  Avago currently holds a Zacks Rank #1 (Strong Buy).  It has an excellent PEG of 0.97. 
There have been 12 positive estimate revisions in the last 60 days by analysts for this quarter.  In that same time frame, there have been 0 negative estimate revisions.  30 days ago, our EPS consensus called for EPS of $1.50 for this quarter.  However, our consensus estimate has gone up since then, with a current EPS consensus of $1.82 for this quarter.  AVGO has beaten our earnings estimate in 3 of the last 4 quarters, and by an average of 16.49%.  Avago reports its earnings on 6/4/15.

MICRON TECH (MU): Free Stock Analysis Report
UTD MICROELECTR (UMC): Free Stock Analysis Report
MELLANOX TECH (MLNX): Free Stock Analysis Report
AVAGO TECHNOLOG (AVGO): Free Stock Analysis Report

By Zacks.com,
Source: http://www.nasdaq.com/article/forget-micron-mu-buy-these-semiconductor-stocks-instead-stocks-in-the-news-cm457871#ixzz3VFZJnjVm