Tech has seen its share of ups and downs. But the social need
for connectivity is bringing screens of all sizes to the masses in
second and third world countries. Meanwhile, tech innovation has
become the MSG of the first world. We simply can't get
) develops internet "balloons" to carry web access to every corner
of the globe, the propagation of technology is becoming so
ubiquitous that it stands to become the next basic necessity, just
behind air, food and water. With these factors in mind, it should
come as no surprise that the Zacks Industry Rank for electronic
components and semiconductors jumped +27 this week.
Electronic Components & Semiconductors now enjoys a Zacks
Industry Rank of #79.
Typically, sectors with a large number of companies make more
modest movements in this industry rank list. However, this group of
59 companies benefited from 20 recent positive revisions to annual
earnings estimates compared to only 8 negative revisions. While
these positive estimate revisions average only +6% individually,
the sheer number of companies in this industry being revised higher
is powering this deep Zacks Industry Rank movement.
Two companies in particular seem charged for strong profitability.
Their shares have been upgraded this week in terms of their
individual Zacks Rank. Upward movement in this rank from a Buy or
Hold to a Strong Buy signals a stock may be on the move higher,
following future positive earnings estimate revisions.
Including this factor in your investment strategy can assist in
grasping not only the direction of a given business, but secular
trends within a sector like Tech. Both of these businesses have
been revised upward to a current Zacks Rank #1 (Strong Buy). Both
hold a Zacks long-term recommendation of "Outperform," too.
As with any good investment strategy, pay close attention to the
components. It is time well spent.
ChipMOS Tech Ltd
IMOS is a Zacks Rank #1 (Strong Buy). It was upgraded two spots
within the last week from a Zacks Rank #3 (Hold). This company
reports earnings on August 16, 2013.
ChipMOS Tech is the leading independent provider of semiconductor
testing and assembly services. The company is the largest
independent provider of testing and assembly services for LCD and
other flat-panel display driver semiconductors globally, and a
leading provider of testing and assembly services for advanced
memory products in Taiwan. With the global LCD market under heavy
pressure to accommodate more screens per household, not to mention
larger and better options, demand appears strong.
IMOS pays an annual dividend of 0.72%. Their most recent quarterly
earnings surprise was +215%.
OVTI is a Zacks Rank #1 (Strong Buy), climbing up from Zacks Rank
#2 (Buy) just last week. This company reports quarterly earnings on
August 22, 2013.
OmniVision Technologies, Inc. designs, develops and markets
semiconductor imaging devices for computing, communications and
consumer electronics applications. The company's major products,
CMOS image sensors, are used to capture an image in actual cameras
and camera-related products such as personal computer cameras,
digital still cameras, personal digital assistant cameras and
mobile phone cameras.
Recently, the company introduced a new sensor for 8 megapixel
smartphone cameras. They continue a balanced approach to their
offerings by providing image sensor products in segments such as
automotive, security and tablet/pc webcams. OVTI has a big
end-market position in China.
OVTI's most recent quarterly earnings surprise was +88%.
CHIPMOS TEC LTD (IMOS): Free Stock Analysis
OMNIVISION TECH (OVTI): Free Stock Analysis
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