NEW YORK ( TheStreet) -- Semiconductors have been a leadership industry within the computer and technology sector. The PHLX Semiconductor Sector Index 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; Broadcom ( BRCM) by 21.5% and Skyworks Solutions ( SWKS) 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 Micron Tech ( MU) 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
OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. VE Rating: 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.