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 are projected to move higher by that percentage over the next 12 months.
Analysis of the Philadelphia Semiconductor Index
Looking at the overvalued/undervalued data, 18 members of the SOX are undervalued and 12 are overvalued. The most overvalued stock is Cirrus Logic ( CRUS) by 61.2%. The most undervalued stocks are Advanced Micro ( AMD) by 41.9%, Marvell Technologies ( MRVL) by 39.5% and Rubicon Technologies ( RBCN) by 35.1%. Only three stocks in the SOX are "4-Engine" Buy rated: Intel ( INTC), Marvell and Taiwan Semiconductor ( TSM). Twenty SOX members are higher over the past 12 months, while nine are lower. Mellanox Tech ( MLNX) is up 303.1% with Cirrus Logic up 195.2%. The biggest losers are Memc Electronic Materials ( WFR) is down 57.7% and Interdigital ( ICDD) is down 50.2%. SOX stocks are not cheap on a P/E basis as 18 have ratios above 15.0.
Here are profiles for the three semiconductor stocks in the SOX that are Buy rated according to ValuEngine. www.ValuEngine.com: Intel Corp ( INTC) ($24.91) is trading just above its July 12 low at $24.68. My semiannual value level is $21.14 with a weekly pivot at $24.95 and monthly risky level at $27.97. This stock was added to my ValuTrader Model Portfolio at $24.75 on July 12. Marvel Technology ( MRVL) ($10.45) is trading just above its July 12 low at $10.27. My semi annual value level is $10.02 with a weekly pivot at $10.65 and monthly risky level at $12.87. This stock was added to my ValuTrader Model Portfolio at $11.30 on June 25 and was removed at was removed at $11.85 on Aug. 9 for a gain of 4.9%. Marvel returned to the model portfolio at $10.45 on Aug. 27. Taiwan Semiconductor ( TSM) ($14.37): My semiannual and annual value levels are $12.58 and $11.32 with a semiannual pivot at $13.91, and monthly and quarterly risky levels at $15.52 and $15.80. At the time of publication the author held no positions in any of the stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.