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The Zacks Analyst Blog Highlights: ON Semiconductor, Amkor Technology and GigPeak

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For Immediate Release

Chicago, IL - February 13, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include ON Semiconductor Corporation (NASDAQ: ON - Free Report ), Amkor Technology, Inc. (NASDAQ: AMKR - Free Report ) and GigPeak, Inc. (NYSEMKT: GIG - Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Semiconductor Stocks to Watch on Q4 Earnings Monday

The peak of the fourth quarter earnings season is over with 319 S&P 500 members, representing 76.3% of the index's total market capitalization, having already reported their results.

As of Feb 8, total earnings of these companies were up 5.8% on a year-over-year basis (69.6% of the companies beat EPS estimates) while total revenue was up 4.5% on a year-over-year basis (54.5% of the companies beat top-line estimates).

Notably, earnings and revenue growth numbers are better than the recent quarters and growth looks poised to reach its highest level in the last two years. Also, total earnings are poised to reach a new quarterly record. However, positive earnings surprises are tracking low at this stage compared to the past.

As per our latest Earnings Outlook report, overall fourth-quarter earnings for S&P 500 companies are anticipated to be up 7.3% from the year-ago quarter on revenues that are estimated to increase 3.9%.

For the technology sector in particular, earnings are anticipated to be up 8.3% year over year based on 4.4% higher revenues. As of Feb 8, 86.1% of the sector's total market cap have already reported their earnings with 70.5% posting a beat on the bottom line.

Here we take a look at three semiconductor companies that are set to report their fourth-quarter 2016 earnings on Feb 13:

ON Semiconductor Corporation (NASDAQ: ON - Free Report ) is unlikely to beat estimates as it has an unfavorable combination of a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

During the fourth-quarter, ON Semiconductor's Pocatello, ID facility was granted the Trusted Test status by the Department of Defense's (DoD) Defense MicroElectronucs Activity (DEMA) accreditation program. This is a major development for the company as it could translate to steady orders from the DoD going ahead and obviously augurs well for the company.

The company expanded its support in the Internet of Things (IoT) space with the introduction of a modular IoT Develoment Kit during the quarter. Given the growing demand for interconnected devices, this move looks aptly timed and bodes well for the company in the soon-to-be reported quarter.

We note that ON Semiconductor's results compared favorably with the Zacks Consensus Estimate in three of the last four quarters, resulting in an average positive surprise of 3.54%.

Shares of ON Semiconductor have outperformed the Zacks Semiconductor - Analog And Mixed industry over the last one year. While the industry gained 62.6%, the stock returned 95.2%.

Similarly, Amkor Technology, Inc. (NASDAQ: AMKR - Free Report ) looks unlikely to beat earnings estimates as it has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of 0.00%.

Amkor's third-quarter results were above management expectations driven by strong smartphone demand across multiple tiers.

The company made noticeable progress in some of its key areas. Amkor's System-in-Package (SiP) business grew significantly. Also, automotive sales increased.

While end market demand is expected to remain stable with particular strength in China, where the company is picking up market share, uncertainties surrounding smartphone demand and currency fluctuations could impact the upcoming results.

Notably, Amkor's results have beaten the Zacks Consensus Estimate in three out of the preceding four quarters with an average positive surprise of 62.50%.

Also, shares of Amkor have underperformed the Zacks Electronics - Semiconductors industry over the last one year. While the industry gained 92.1, the stock gained 89.0%.

GigPeak, Inc. (NYSEMKT: GIG - Free Report ) too is unlikely to beat estimates as it has an unfavorable combination of an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .

GigPeak provides semiconductor ICs and software solutions. Its product lines consist of High-Speed Communications product line and Industrial product line. Its product portfolio consists of fiber-optics telecom, wireless backhaul, data communication and consumer electronics, mil-aero, instrumentation and medical equipment for applications.

The company holds a commanding position in the 40-gigabit per second space that has its applications in the burgeoning cloud market. This is a positive for the company and bodes well for its quarterly results.

However, a competitive landscape and foreign currency risk remain concerns for the soon-to-be reported quarter.

Notably, GigPeak's results have beaten the Zacks Consensus Estimate in three out of the preceding four quarters. It has an average four-quarter positive surprise of 37.50%.

Shares of GigPeak have underperformed the Zacks Electronics - Semiconductors industry over the last one year. While the industry gained 92.1%, the stock returned only 7.8%.

Where Do Zacks' Investment Ideas Come From?

You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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ON Semiconductor Corporation (ON): Free Stock Analysis Report

Amkor Technology, Inc. (AMKR): Free Stock Analysis Report

GigPeak, Inc. (GIG): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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