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The Zacks Analyst Blog Highlights: iShares PHLX Semiconductor ETF, Market Vectors Semiconductor ETF, SPDR S&P Semiconductor ETF and PowerShares Dynamic Semiconductors Fund. - Press Releases

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For Immediate Release

Chicago, IL - May 01, 2015 - 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. ETFs recently featured in the blog include the iShares PHLX Semiconductor ETF ( SOXX), Market Vectors Semiconductor ETF ( SMH), SPDR S&P Semiconductor ETF ( XSD)andPowerShares Dynamic Semiconductors Fund ( PSI).

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

Here are highlights from Thursday's Analyst Blog:

Chipmakers' Q1 Fail to Fuel Semi ETFs

The tech heavy Nasdaq Composite Index had made an impressive comeback after 15 years, hitting new highs last week and breaching the important threshold of 5,000 for the second time in two months (read: 3 Stocks Driving the Nasdaq 100 ETF to New Highs ).

Total earnings for 82.7% of the sector's total market capitalization that have reported so far are up 7.5% on 8.1% revenue growth with 47.2% of the companies beating earnings per share (EPS) and revenue estimates. Semiconductors have been the fastest growing segment of the technology sector. However, mixed results from some industry primes so far have failed to drive the semiconductor sector. Let's dig into the individual performances:

Semiconductor Earnings in Focus

The major dampener is Texas Instruments, shares of which have fallen 5.7% to date following its earnings release on April 22 after the closing bell. The company missed earnings estimate by a penny and revenues of $3.15 billion also fell short of our estimate. It provided earnings and revenues guidance, which were lower than the respective Zacks Consensus Estimate. Earnings per share are expected in the range of 60-70 cents, while revenues are likely between $3.12 billion and $3.38 billion.

The memory chipmaker Micron Technology is the major gainer as the stock has climbed nearly 6.4% to date post earnings announcement on April 1 after the closing bell. The company reported earnings of 81 cents per share, outpacing the Zacks Consensus Estimate of 77 cents but declining from the year-ago earnings of 85 cents. Revenues increased 1.4% year over year to $4.17 billion and were also slightly above our estimate of $4.16 billion. However, Micron provided a downbeat revenue guidance of $3.8-$4.1 billion for the third quarter of fiscal 2015; the midpoint is well below the Zacks Consensus Estimate of $4.27 billion at the time of issuing the guidance.

Shares of Intel, the world's largest chipmaker, have moved up 4.4% to date post first-quarter earnings announcement on April 14. The company beat the Zacks Consensus Estimate by a penny on the earnings front but slightly missed our estimate for revenues. The company expects revenues in the range of $12.8-$13.7 billion for the ongoing quarter, the mid-point of which is approximately in line with our current estimate. Further, it expects revenues to remain flat for the full year (read: Semiconductor ETFs to Watch Should Intel Buy Altera ).

First-quarter fiscal 2015 earnings at Broadcom came in at 64 cents per share, beating our estimate by 4 cents. Revenues of $2.058 billion were ahead of our estimate of $2.008 billion. The company guided revenues of $2.025-$2.175 billion for the second quarter of 2015 while the Zacks Consensus Estimate is currently pegged at $2.106 billion. BRCM shares have risen nearly 1% post earnings (April 21) to date.

ETFs in Focus

The earnings of these chipmakers failed to drive the semiconductor ETFs over the past 10 days. Investors should carefully watch the movement of these funds and could take advantage of any opportunity that arises. This is because these funds have a top Zacks ETF Rank of 1 or 'Strong Buy' rating suggesting their outperformance in the coming months.

iShares PHLX Semiconductor ETF ( SOXX)

This ETF follows the PHLX Semiconductor Sector Index and offers exposure to 30 domestic firms. It is highly concentrated on the top 10 firms with 58.1% of total assets. Two-thirds of the portfolio is dominated by large cap stocks while mid-caps take the remainder, with just 3% going to small caps (read: A Comprehensive Guide to Semiconductor ETF Investing ).

The fund has amassed $536.3 million in its asset base and trades in average volume of roughly 255,000 shares a day. The product charges 47 bps in fees a year from investors and has lost nearly 2.4% over the past 10 days.

Market Vectors Semiconductor ETF ( SMH)

This fund provides exposure to 26 securities by tracking the Market Vectors US Listed Semiconductor 25 Index. Of these, two firms - Intel and Taiwan Semiconductor Manufacturing - dominate the fund's return with a combined 33.85% of total assets while other firms hold no more than 5.43% share each. From a market cap look, the product focuses on large cap stocks, as together these account for about 81% of the portfolio.

The product has managed assets worth $613.4 million and charges 35 bps in annual fees and expenses. It is heavily traded with volume of more than 3.1 million shares per day and has lost about 0.5% in the same period.

SPDR S&P Semiconductor ETF ( XSD)

This fund tracks the S&P Semiconductor Select Industry Index, holding 48 stocks in its portfolio. It is widely spread across each security as none of these allocates more than 2.91% of the assets. The product has a definite tilt toward small cap stocks at 54%, followed by 28% in mid-caps and 18% in large caps (see: all the Technology ETFs here ).

The fund is less popular and illiquid with AUM of $162.8 million and average daily volume of under 100,000 shares. It charges 35 bps in fees per year and is down 4% in the same period.

PowerShares Dynamic Semiconductors Fund ( PSI)

This fund tracks the Dynamic Semiconductor Intellidex Index, holding 30 securities in the basket with none holding more than 5.65% of assets. Here again, the ETF is skewed toward small caps at 46% while large caps and mid-caps account for 36% and 18%, respectively.

The product, with AUM of $80 million is often overlooked by investors and hence sees a lower average daily volume of 44,000 shares. Expense ratio came in at 0.63%. PSI is down 2.8% in the same time period.

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

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ISHARS-PHLX SEM (SOXX): ETF Research Reports

MKT VEC-SEMICON (SMH): ETF Research Reports

SPDR-SP SEMICON (XSD): ETF Research Reports

PWRSH-DYN SEMI (PSI): ETF Research Reports

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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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