Compiled from StockScouter ratings by Verus Analytics
For the second straight week, no fewer than five chip makers appear on StockScouter's latest list of 10 recommended stocks. This week, two of them can be bought for less than $10 a share.
San Jose, Calif.-based Atmel (ATML -0.32%, news), which closed Friday at $9.45, designs and manufactures microcontrollers, capacitive touch solutions, advanced logic, mixed-signal, nonvolatile memory and radio frequency components.
ON Semiconductor (ONNN +0.55%, news), headquartered in Phoenix, designs, manufactures and markets semiconductor components for electronic systems with a focus on energy efficiency. ONNN shares closed at $9.13 Friday.
Shares of semiconductor companies have marched higher in 2014, as tech investors wary of unpredictable and often unprofitable social media and Internet stocks have sought to cash in on industry stalwarts rolling in revenue as the economy gathers steam.
The iShares PHLX Semiconductor ETF (SOXX +0.30%, news) is up 18.7 percent on the year, compared to just a 6.5 percent gain in the broader Technology Select Sector SPDR (XLK -0.21%, news) and a 5.4 percent return for the S&P 500 ($INX +0.17%).
"The high demand for advanced computing power has led to strong earnings and rocketing share prices for a variety of well-known companies, including Intel (INTC +0.37%, news ) and Micron Technology (MU +0.13%, news),"writes David Fabian for Benzinga. "This outperformance can be attributed to investors shying away from social media and internet stocks in favor of more steadfast technology businesses."
However, as Bloomberg’s Callie Bost notes, some technology and small-cap stocks that tanked in March and Aprilhave come roaring back. Netflix (NFLX -0.27%, news) has gained 21 percent in the past month, while Tesla (TSLA +0.79%, news) is up 16 percent and TripAdvisor (TRIP +0.53%, news) has rallied 19 percent in that time.
Whether investors continue their migration into high-quality stocks or return to chasing more risky high-fliers, StockScouter's Top 10 portfolio is a good place to begin your investment research.
Atmel and ON Semiconductor both get a '10' from the StockScouter rating system on MSN Money, the highest score possible. Based on StockScouter's analysis, shares of ATML and ONNN are both expected to significantly outperform the market over the next six months with average risk or lower.
Read the full Scouter reports on Atmel and ON Semiconductor here.
StockScouter Top 10 for June 20 | ||||
Company
|
Sector
|
Dividend yield
|
Forward P/E
|
Scouter score
|
Atmel (ATML -0.32%, news)
|
Semiconductors
|
NA
|
13.8
|
10
|
Kodiak Oil & Gas (KOG +1.04%,news)
|
Oil and gas
|
NA
| 18.3 | 10 |
Juniper Networks (JNPR +0.21%, news)
|
Communication equipment
|
NA
|
12.9
| 9 |
Marvell Technology Group (MRVL +0.88%, news)
| Semiconductors | 1.6% | 12.9 | 9 |
Nvidia (NVDA -1.09%, news)
| Semiconductors | 1.7% | 18.0 | 9 |
KeyCorp (KEY +0.63%, news)
|
Regional banks
|
1.8%
| 12.4 |
10
|
Annaly Capital Management (NLY +0.69%, news)
|
Real estate investment trust (REIT)
|
10.4%
|
7.3
|
10
|
ON Semiconductor(ONNN +0.55%,news)
|
Semiconductors
|
NA
|
9.8
|
10
|
Seadrill (SDRL +1.37%, news)
|
Offshore oil & gas drilling
|
10.1%
|
10.7
|
10
|
Semiconductors
|
1.9%
|
75.3
|
10
| |
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We think the StockScouter rating system developed by Verus Analytics for MSN Money is one of the best tools you can use when you're trying to decide where to invest.
StockScouter looks for stocks whose business fundamentals, price behavior, valuation and stock-ownership characteristics appear to predict a rising price in the future, based on how those factors have influenced stock prices in the past.
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