The chip sector has had a big recovery so far this year. marketSmithThe breakout list over the past few weeks shows six chip stocks trading above buy points — more than any other sector.
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In a pullback on Monday, the top two chip stocks remained in buy territory.
Application materials (amateurs) get out of a cup base with a buy point of 116.19 on high volume last week. Stocks are in a buy zone to 121.99.
The chip equipment maker has seen slower growth than most other chip companies. Revenue increased from 5% to 12% in the past three quarters, while earnings increased from 2% to 13%. However, Applied Materials still has a solid Composite Rating of 93.
What stands out about chip stocks is the fund they hold. Mutual funds hold 51% shares. The chip stock’s Accumulation/Distribution Rating of A- also indicates strong interest from institutional investors. The Santa Clara, California-based company supplies chip equipment and software to the semiconductor industry.
Network of chip stocks in buy zone
semiconductor grid (LSCC) is also in the buy zone, which is from the 76.57 buy point in the cup with handle pattern. The stock exploded on high volume last week and has moved back into the buy zone.
Revenue rose 31% to $172.5 million in the third quarter while earnings per share of 48 cents increased 71%. That was the best EPS gain of the six most recently reported breakouts in chip stocks.
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microchip (MCHP), bust (ABOVE) And Circus logic (CRUS) is also extended from pimples happened in the past few weeks.
Analog Devices (ADI) is trying to break out of the cup bottom with a buy point of 180.05.
The transportation and construction sectors also had six recent breakouts in MarketSmith’s display, although those sectors are more structurally diverse.
Be sure to follow Vramakrishnan on Twitter at @IBD_VRamakrishnan for more on growth stocks.
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