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Micron Tech, Sandisk Lead These 15 Semiconductor Stocks in the SOX

NEW YORK (TheStreet) -- The PHLX Semiconductor Index (SOX) has been the best year-to-date performer among all the equity averages or indices I track, up 21% so far in 2014. Here I profile 15 of the most popular stocks in the SOX, but did not include Intel (INTC), as I covered this benchmark company on July 7 in Caterpillar, Intel Have Led the Dow 30 Higher as Earnings Begin.

Micron Tech (MU - Get Report) and Sandisk (SNDK - Get Report) outperformed the SOX with gains of 51% each, so far in 2014. The only year-to-date loser profiled today is CREE  (CREE), down 19% year to date.

Today's first "crunching the numbers" table shows that eight of 15 stocks are above all five key moving averages. I included the "12-month trailing earnings per share" and 10 have elevated P/E ratios between 20.5 and 43.0.

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Only two stocks are below their five-week modified moving average: Marvel Tech (MRVL) and Nvidia (NVDA). Looking at the 12x3x3 weekly slow Stochastic column, three stocks have flat or declining readings: Advanced Micro Devices (AMD), Maxim Integrated Products (MXIM) and Nvidia.

Looking at the second "crunching the numbers" table, Micron has already reported its latest quarterly results with an earnings beat reported on June 23. The remaining 14 companies report their quarterly results between July 16 and August 28.

Here are some updated profiles for the semiconductor stocks I covered on June 5, Letting the Chips (Stocks) Fall Where They May: A Mixed Bag.

Applied Materials (AMAT) ($22.96) is up 30% year to date. The stock set a multiyear intraday high at $23.46 on July 7 well above its 200-day simple moving average at $18.74. The weekly chart is positive, but overbought, with its five-week modified moving average at $21.84, monthly and semiannual value levels are $20.96 and $18.63, respectively, with a quarterly pivot at $22.07 and a weekly risky level at $24.08.

The company reports quarterly results on August 21 and analysts expect Applied Materials to earn 27 cents per share. In my June 5 post, I expected this stock to be a momentum play and indeed it has been.

Broadcom (BRCM) ($37.07) is up 27% year to date. The stock set a multiyear intraday high at $38.85 on June 16 and is well above its 200-day SMA at $30.04. The weekly chart is positive with its five-week MMA at $35.82 and its 200-week SMA at $34.13. Monthly and semiannual value levels are $36.89 and $36.76, respectively, with annual and weekly risky levels at $38.04 and $41.16, respectively.

The company reports quarterly results on July 22 and analysts expect Broadcom to earn 42 cents per share.

Marvell Tech ($14.53) is up just 1% year to date and has been a laggard since trading as high as $16.65 on April 1. The stock is just above its 200-day SMA at $14.41. The weekly chart is negative but oversold with its five-week MMA at $14.89 and the 200-week SMA at $13.71. Annual and quarterly value levels are $13.49 and $13.33, respectively, with a weekly pivot at $14.55 and monthly risky level at $18.14.

The company reports quarterly results on August 28 and analysts expect Marvell to earn 22 cents per share.

Nvidia Corp ($18.70) is up 17% year to date. The stock set a multiyear intraday high at $19.73 on June 13 and is above its 200-day SMA at $17.06. The weekly chart shifts to negative on a close this week below its five-week MMA at $18.71. A quarterly value level is $17.43 with a weekly pivot at $19.49 and monthly and semiannual risky levels at $20.30 and $20.54, respectively.

The company reports quarterly results on August 14 and analysts expect Nvidia to earn 19 cents per share.

Texas Instruments (TXN) ($48.92) is up 11% year to date. The stock set a multiyear intraday high at $49.77 on April 1 and is well above its 200-day SMA at $44.15. The weekly chart is positive, with its five-week MMA at $47.75. Semiannual and annual value levels are $41.08 and $34.21, respectively, with a monthly pivot at $49.08 and weekly and semiannual risky levels at $49.11 and $49.32, respectively.

The company reports quarterly results on July 21 after the closing bell and analysts expect TI to earn 59 cents per share.

Crunching the Numbers with Richard Suttmeier: Moving Averages & Stochastics

This table provides the technical status for the stocks profiled in today's report.

The 12 month trailing price to earnings ratio

There are five columns with moving average titles: Five-Week Modified Moving Average, 21-Day Simple Moving Average, 50-Day Simple Moving Average, 200-Day Simple Moving Average and the 200-Week Simple Moving Average.

The column labeled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from Oversold, Rising, Overbought, Declining or Flat.

Interpretations: Stocks below a moving average are listed in red.

Five-Week Modified Moving Average (MMA) is one of two indicators that define whether or not a weekly chart profile is positive, neutral or negative. The other is the status of the 12x3x3 weekly slow stochastic.

A stock with a positive technical rating is above its five-week MMA with rising or overbought stochastics.

A stock with a negative technical rating is below its five-week MMA with declining or oversold stochastics.

A stock with a neutral technical rating has a profile that is not positive or negative.

The 200-Week Simple Moving Average (SMA) is considered a long-term technical support or resistance and as a "reversion to the mean" over a rolling three to five year horizon.

The 21-Day Simple Moving Average is a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock above its 21-day SMA will likely move higher over a rolling three to five day horizon and vice versa.

The 50-Day Simple Moving Average is also a technical support or resistance used by many strategists and commentators in financial TV.

The 200-Day Simple Moving Average is another technical support or resistance and I consider this level as a shorter-term "reversion to the mean" over a rolling six to 12 month horizon.

Crunching the Numbers with Richard Suttmeier: Earnings & Where to Buy & Where to Sell

This table presents the EPS estimates including date and before or after the close, and where to buy on weakness and where to sell on strength.

Value Levels, Pivots and Risky Levels are calculated based upon the last nine weekly closes (W), nine monthly closes (M), nine quarterly closes (Q), nine semiannual closes (S) and nine annual closes (A). I have one column for pivots, which is a magnet for the period shown. The columns to the left of the pivots are first and second value levels. The columns to the right of the pivots are first and second risky levels.

Investors who wish to buy a stock should use a good-until-canceled GTC limit order to buy weakness to a value level. Investors who want to sell a stock should use a GTC limit order to sell strength to a risky level.

At the time of publication the author held no positions in any of the stocks mentioned.

Follow @Suttmeier

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff

Richard Suttmeier is the chief market strategist at ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com

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