On Oct 5, Zacks Investment Research upgraded
Freescale Semiconductor, Ltd.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
The embedded processing solutions provider Freescale
Semiconductor has delivered positive earnings surprises in the
last 4 quarters with an average beat of 52.5%. The long-term
sales growth of the company is 25.0%.
The consistent performance has prompted the company to revise its
gross margin expectation for the third quarter. Freescale
Semiconductor expects its gross margin in the third quarter to
expand by 75 to 100 basis points on a sequential basis.
Last month, Freescale Semiconductor Japan Ltd, and ROHM Co. Ltd.
joined forces to provide comprehensive solutions for the Japanese
and worldwide automotive markets. This deal will benefit the
company going forward.
In addition, consistent capital outlay will enable the company to
develop new technology and provide better solutions to its
clients. In the previous quarter Freescale Semiconductor invested
$40 million in development activities.
The Zacks Consensus Estimate for 2013 increased 3% in the last 60
days to 34 cents per share, reflecting year-over-year growth of
237.3%. For 2014, the consensus increased 1.5% over the same time
period to $1.36 per share, reflecting growth of 295.6%.
Other Stocks to Consider
Besides Freescale Semiconductor, a few other companies in the
sector are also performing well and have a favorable Zacks Rank.
The stocks worth considering are
Cirrus Logic Inc.
Semiconductor Manufacturing International Corp.
Aeroflex Holding Corp.
). Cirrus Logic and Semiconductor Manufacturing International
have a Zacks Rank #1 (Strong Buy) while Aeroflex Holding has a
Zacks Rank #2 (Buy).
AEROFLEX HOLDNG (ARX): Free Stock Analysis
CIRRUS LOGIC (CRUS): Free Stock Analysis
FREESCALE SEMI (FSL): Free Stock Analysis
SEMICON MFG-ADR (SMI): Free Stock Analysis
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