Zacks Value Trader Highlights: Micron, Broadcom, NVIDIA, Lam Research and Vishay Intertechnology

For Immediate Release

Chicago, IL – May 24, 2019 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

5 Semiconductors: Value Stocks or Value Traps?

Welcome to Episode #142 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

This is the podcast you’ve all been waiting for.

Are the semiconductors cheap? Or are they value traps?

What’s a Value Trap?

Here’s another reminder of the difference between a value stock and a trap. Remember, the traps can look very similar to true value stocks. After all, they are usually cheap and have a bunch of value fundamentals.

How can you tell the difference between a value stock and a value trap?

While the company may have classic value fundamentals, investors need to look beyond the P/E ratio at the “E” of the P/E.

Are the earnings expected to rise, or decline, year-over-year?

If they are on the decline, the stock is likely to be a value trap because that means there is something happening at the company that is causing it to struggle to grow.

Investors want earnings growth, not decline. The “E” in the P/E should not be on the decline.

5 Semiconductor Stocks: Values or Traps?

1.       Micron MU has a forward P/E of 5.4. It’s dirt cheap. Many thought the cycle had bottomed in December 2018. But has it? The earnings estimates tell the tale.

2.       Broadcom AVGO is trading at 11.8x. It’s cheap. Shares have fallen 13% over the last month on the trade worries. How are the earnings looking for this fiscal year?

3.       NVIDIA NVDA has a forward P/E of 28, so it doesn’t qualify as a “value” stock just based on P/E alone. But it’s worth checking in on its earnings to see what they are looking like. Does this popular company have the earnings growth to support that P/E?

4.       Lam Research LRCX is trading with a forward P/E of 12.8. Year-to-date, shares are up 37%. Impressive. Could it avoid being a value trap?

5.       Vishay Intertechnology VSH has a forward P/E of just 9.7. This is a hidden semiconductor as it’s headquartered in Pennsylvania, not Silicon Valley. Year-to-date, the shares are down 8.7%. Which way are earnings expected to move in the next year?

Restrictions on what Huawei can buy from US companies have also hit this sector hard.

What other issues are going to impact earnings over the next six months?

Find out all about the semiconductors on this week’s podcast.

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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 for information about the performance numbers displayed in this press release.

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Broadcom Inc. (AVGO): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Micron Technology, Inc. (MU): Free Stock Analysis Report

Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report

Lam Research Corporation (LRCX): Free Stock Analysis Report

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