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

Buy Rated Semiconductors Lag the SOX

NEW YORK (TheStreet) - The PHLX Semiconductor Index has been a stock market leader setting a multi-year intra-day high at 518.97 on Dec. 9 tracking the tech-heavy Nasdaq higher. Could it be that demand for semiconductors is on the rise despite a decline in the shipments in personal computers? Since almost every device manufactured contains computer chips strength in semiconductor stocks can be considered a leading indicator for a stronger than expected economy. In the case of the stocks in the SOX is it also a story where a rising tide of market strength does not lift all boats. Among the 15 buy rated stocks of the 30 in the SOX five are trading below their 200-day Simple moving averages including Altera (ALTR), Cree (CREE - Get Report), Maxim Integrated (MXIM) and Taiwan Semi (TSM).

The SOX has a positive but overbought weekly chart profile with its five-week modified moving average at 506.67 and a 12x3x3 weekly slow stochastic reading of 92.27, well above the 80.00 reading that identifies an overbought condition. Semiconductors are also in the computer and technology sector which is 30.2% overvalued but with an overweight sector weighting as 51.7% of the 1140 companies in the sector are rated buy or strong buy.

Among the 15 stocks in today's post, two are undervalued by 3.7% and 31.6%. Among the overvalued names nine are overvalued by 20.8% to 43.9%. Two stocks in today's post have losses of 2.1% and 5.1% over the last 12 months, while eight of the remaining stocks are up between 24.5% and 73.6% over the last 12 months. The reversion to the mean is mixed as five are below their 200-day SMAs while 10 are above.

Analog Devices (ADI) ($48.91) is 38.8% overvalued and has a gain of 18.1% over the last 12 months and is above its 200-day SMA at $46.84. The stock traded as high as $50.79 on Nov. 15 and as low as $46.12 on Nov. 27. My monthly value level is $47.61 with semiannual and quarterly risky levels at $51.19, $52.45 and $53.36.

Must Read: 4 Stocks Rising With Big Volume

Altera ($31.41) is 19.3% overvalued and has a loss of 2.1% over the last 12 months and is below its 200-day SMA at $34.32 with its recent low at $30.99 set on Nov. 19. My annual value level is $27.26 with monthly and annual pivots at $32.14 and $32.26 and a quarterly risky level at $40.01.

Applied Materials (AMAT) ($16.83) is 33.5% overvalued and has a gain of 52.3% over the last 12 months and is above its 200-day SMA at $15.61 but below its 50-day SMA at $17.51. My semiannual value levels are $14.88 and $14.87 with a quarterly pivot at $16.46 and monthly risky level at $18.95.

1 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ALTR $53.96 0.06%
CREE $28.93 0.00%
AAPL $95.01 0.00%
FB $98.19 -1.60%
GOOG $682.74 0.00%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs