Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

4 Small-Cap Semiconductor Stocks To Buy Now

By Zacks Investment ResearchStock MarketsJun 22, 2017 12:56AM ET
4 Small-Cap Semiconductor Stocks To Buy Now
By Zacks Investment Research   |  Jun 22, 2017 12:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The old adage in investing is to buy low and sell high. At Zacks, we believe it is vital to be able to identify stocks that possess growth or value potential, even if they do not classify as a well-known company. If invested wisely, money spent on a small-cap stock can transform into massive capital gains due to a share price explosion.

The semiconductor industry can be a reliable one, especially since these products are utilized in factories, power, communications and electronics. Many small-cap semiconductor producers have the capability to undergo massive growth which in turn, will reward its loyal shareholders.

Check out these 4 small-cap semiconductor stocks to buy now:

1. ChipMOS Technologies Ltd. (NASDAQ:IMOS)

ChipMOS Technologies has a beta rating of 0.43, which means that the investment is expected to be less volatile on average. However, the stock is currently paying a massive dividend of 7.94% to its shareholders. ChipMOS Technologies scored an “A” Value grade which means that this stock might be largely undervalued by the market. Additionally, the company currently boasts a solid EV/EBITDA of 5.33, while its stock price has increased by 14.43% in the past 12 weeks. In essence, this stock has the potential to provide excellent value to shareholders who will show loyalty to this small-cap investment. ChipMOS Technologies currently stands at a Zacks Rank #2 (Buy).

2. MaxLinear, Inc. (NYSE:MXL)

MaxLinear reported a RoE of 26.77% compared to an industrial average of 17.86%, which means that the company is more effectively creating assets from shareholder equity than its competitors. Additionally, MaxLinear has beaten their earnings projections for each of their last six operational quarters, and its share price has increased by 54.97% over the past year. MaxLinear is expected to continue this trend as its projected sales growth stands at 18.09%, while its sales/asset ratio sits at 0.84, both of which compare favorably to the industry. This means that MaxLinear is efficiently using its assets to increase sales in the near future. MaxLinear currently has a Zacks Rank #1 (Strong Buy) due to its increase in earnings estimates.

3. MagnaChip Semiconductor Corporation (NYSE:MX)

MagnaChip possesses a small market cap of $317 million, but is projected to skyrocket in the near future. As of 60 days ago, MagnaChip’s full-year EPS estimates increased by 37.50%, while their current Cash Flow Growth stands at 52.09%. Further, MagnaChip surprised shareholders by beating their most recent earnings projections by 80%. MagnaChip also holds a 21.25 P/E ratio and Earnings Yield of 4.73%; both of these measurements are respectable among its industrial competitors. Also, the company sports a strong Price/Sales ratio of 0.45. This means that MagnaChip is only paying $0.45 for every $1 of sales the corporation earns. This company received a Zacks Rank #2 (Buy) due to adjustments to its future earnings forecast.

4. Advanced Energy Industries, Inc. (NASDAQ:AEIS)

Advanced Energy ought to be considered the poster child of consistency as they have beaten their earnings projections 19 out of the last 20 quarters dating back to 2012. The company is currently outpacing its competitors, as it possesses a current Cash Flow growth of 30.06% and 29.56% RoE. Not to mention, Advanced Energy has a Net Margin of 26.92%, which means that the company is retaining a large portion of their sales and earnings. Basically, this stock has received a “B” grade for Momentum while its share price has increased by a whopping 84.31% over the past year. Now would be the ideal time to purchase this stock that currently has a Zacks Rank #2 (Buy).

Finding stocks in the right trading or investing style that is best suited for you, is one of the keys for consistently making money in the market.

In addition to that, you’ll likely find yourself with less stress, and having more fun while doing so. Plus, finding the right stocks to buy will suddenly become much easier.

Remember, the Zacks Rank remains the first step in your stock selection success, while the Zacks Style Scores are the next and final step to lock in your biggest winners. Focus in on stocks with a Zacks Rank #1 or #2. Then key in on those with a Zacks Style Score of A or B for your preferred trading style.

It truly has never been easier and more profitable to find the best Zacks Rank stocks than now.

To screen for the stocks you’re interested in—and access even more proven tools and resources—start your 30-day free trial to Zacks Premium.

Chipmos Technologies Ltd. (IMOS): Free Stock Analysis Report

MaxLinear, Inc (MXL): Free Stock Analysis Report

MagnaChip Semiconductor Corporation (MX): Free Stock Analysis Report

Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report

Original post

Zacks Investment Research
4 Small-Cap Semiconductor Stocks To Buy Now

Related Articles

4 Small-Cap Semiconductor Stocks To Buy Now

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email