NEW YORK ( TheStreet) -- Semiconductors have been a leadership industry within the computer and technology sector. The PHLX Semiconductor Sector Index (^SOX) is up 28.8% year to date setting a new multi-year high at 500.25 last Thursday. The computer and technology sector is 25.5% overvalued with the semiconductor industry 23.7% overvalued.
Today's table shows the 26 of the 30 components of the semiconductor index that trade above $10 a share. The reason I separated them from the four trading below $10 a share it that many equity money managers cannot buy stocks that are trading below $10 a share.
Of the 26 only two are undervalued;
by 21.5% and
by 10.4%. 15 components are overvalued by more than 20%.
Five stocks are rated buy according to ValuEngine with one rated sell and thus 20 are rated hold. The sell rated stock in the SOX is
who report quarterly results on Thursday.
Performance over the last 12 months shows that only one declined (Broadcom) and that 16 gained more than 20% over the last 12 months.
The projected performances over the next 12 months range from a loss of 7.4% to a gain of 6.1%.
The 12 month trailing price-to-earnings ratios are elevated with 19 stocks having a P/E above 15.0.
Only three stocks are trading below their 200-day simple moving averages which indicate the risk of reversion to the mean for the other 23.
Reading the Table
Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.
Last 12-Month Return (%):
Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.
Forecast 1-Year Return:
Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.