This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chips' Flavor Isn't Lasting

The earnings-positive chip and chip-equipment makers with the greatest current P/E discounts and above-average StockScouter scores are listed below. It's not that these are cheap, necessarily, it's just that they're a lot cheaper than they have been.

Chip P/E Discounts: Are They Enough?
Company Name Symbol PE Current PE 1 Yr. Ago 1 Yr. Discount PE 5-Yr Avg. 5 Yr. Discount SS 9/12 Price
QLogic QLGC 21.5 42.8 -49.80% 69.9 -69.20% 10 $29.88
Linear Technology LLTC 35.5 51.9 -31.60 48.4 -26.70 8 36.92
Xilinx XLNX 28.9 81.9 -64.70 -- 8 29.19
Intel INTC 18.7 52.5 -64.40 59.1 -68.40 7 20.80
Analog Devices ADI 27.6 61.4 -55.00 56.6 -51.20 7 37.85
KLA-Tencor KLAC 32.9 80.8 -59.30 44.4 -25.90 7 39.81
Varian Semiconductor VSEA 29.8 127.7 -76.70 -- 7 32.66
Taiwan Semiconductor TSM 22.4 75.5 -70.30 62.9 -64.40 6 7.62
Power Integrations POWI 33 76.3 -56.70 56.6 -41.70 6 22.44
Altera ALTR 33.5 73.2 -54.20 -- 6 20.35
Source: MSN Money

The ones ranked 8 and higher by StockScouter should have at least a fighting chance to sustain any potential near-term rebound over the next six months. Tomorrow I'll focus more on group leader QLogic (QLGC - Get Report), a maker of devices for storage networking.

At the time of publication, Markman was long QLogic, although positions may change at any time.

Jon D. Markman is publisher of StockTactics Advisor, an independent weekly investment research service, as well as senior strategist and portfolio manager at Pinnacle Investment Advisors. He also writes a weekly column for CNBC on MSN Money. While Markman cannot provide personalized investment advice or recommendations, he welcomes column critiques and comments at

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
LSI $0.00 0.00%
QLGC $15.63 0.45%
AAPL $129.96 -0.44%
FB $80.62 0.41%
GOOG $540.05 1.10%


DOW 18,018.05 -22.32 -0.12%
S&P 500 2,109.92 -1.81 -0.09%
NASDAQ 5,077.49 -5.4390 -0.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs