2 Small-Cap Chip Stocks to Buy in December

Rising investments to address the global semiconductor chip shortage by scaling up production, and increasing demand for chips from several industries, should propel the semiconductor industry’s growth. So, we think it could be wise to bet on quality small-cap stocks Cohu Inc. (COHU) and Alpha and Omega Semiconductor (AOSL). Read on.

 Semiconductor Industry Association (SIA),  operating income,  POWR Ratings, Semiconductor & Wireless Chip,  click here

shutterstock.com – StockNews

While the global chip shortage has impacted several sectors’ output over the past year, global semiconductor sales grew in the third quarter.  Indeed, according to the Semiconductor Industry Association (SIA), global semiconductor sales climbed 27.6% year over year and 7.4% sequentially to $144.8 billion in the third quarter of 2021.

The increasing use of the internet of things (IoT), 5G, artificial intelligence (AI), and electric vehicles (EVs) is expected to continue driving the demand for semiconductor chips. According to IDC, the semiconductor market is expected to grow by 17.3% in 2021. Furthermore, most companies in this space are ramping up their production to meet the rising demand.

Thus, we believe quality small-cap chip stocks Cohu Inc. (COHU) and Alpha and Omega Semiconductor Limited (AOSL) could be solid bets now.

Click here to checkout our Semiconductor Industry Report for 2021

Cohu Inc. (COHU)

With a market capitalization of $1.58 billion, COHU in Poway, Calif., operates semiconductor test and inspection equipment and printed circuit board (PCB) test equipment in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company offers its products to various industries, including automotive, computing and network, consumer, industrial and medical, and optoelectronics.

In August, COHU announced that another major integrated device manufacturer had chosen its Neon inspection and metrology platform for several of its worldwide manufacturing facilities. During the first eight months of 2021, COHU received orders for Neon totaling $33 million from various clients, primarily for inspection and metrology of advanced packages and bumped dies.

COHU’s net sales increased 49.4% year-over-year to $225.06 million in the third quarter, ended September 25, 2021. Its operating income came in at $33.72 million, compared to a  $1.36 million operating loss in the prior-year period. The company reported $23.73 million in net income, compared to a 6.65 million net loss in the third quarter of 2020. Its EPS amounted to $0.48, compared to a $0.16 loss per share in the same period last year.

COHU’s EPS is expected to grow 152.9% year-over-year to $3.01 in its fiscal year 2021. Analysts expect COHU’s revenue to increase 39.1% year-over-year to $884.43 million in the current year. The stock has gained 6.4% in price over the past year.

COHU’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

COHU is rated an A grade for Value and Momentum and a B for Growth. Within the A-rated Semiconductor & Wireless Chip industry, it is ranked #47 of 100 stocks.

To see additional POWR Ratings for Stability, Quality, and Sentiment for COHU, click here.

Alpha and Omega Semiconductor Limited (AOSL)

Sunnyvale, Calif.-based AOSL designs, manufactures, and sells power semiconductors for computer, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. The company’s portfolio of products targets high-volume applications, including portable computers, LED lights, cellphones, automotive electronics, servers, telecommunications equipment, and others. The company has a market capitalization of $1.36 billion.

Last month, AOSL unveiled its newest 80V Power MOSFET, which employs proprietary Shield Gate Technology and is tailored for higher switching frequencies used in telecom and server power supplies, resulting in better efficiency than the previous generation. The company’s new 80V Power MOSFET technology features lower switching losses in hard switching topologies and less voltage overshoot than the previous generation.

For the first quarter, ended September 30, 2021, AOSL’s net sales increased 23.4% from its year-ago value to $187.04 million. Its operating income grew 141.6% year-over-year to $24.95 million. The company’s net income surged 144.7% from the prior-year quarter to $23.42 million, while its EPS increased 136.1% from the year-ago value to $0.85.

The company’s EPS is expected to grow 40.6% year-over-year to $4.12 in the current year. In addition, its revenue is projected to increase 14.1% in the current year and 4.7% next year. AOSL’s stock has gained 107.2% in price over the past year and 117.9% year-to-date.

AOSL’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. AOSL also has an A grade for Value and Momentum and a B for Growth. The stock is ranked #22 in the Semiconductor & Wireless Chip industry.

Beyond the POWR Ratings grades I have just highlighted, one can see the AOSL ratings for Sentiment, Stability, and Quality.

Click here to checkout our Semiconductor Industry Report for 2021


COHU shares were trading at $32.46 per share on Friday morning, down $0.00 (0.00%). Year-to-date, COHU has declined -14.98%, versus a 23.10% rise in the benchmark S&P 500 index during the same period.



About the Author: Pragya Pandey


 Semiconductor Industry Association (SIA),  operating income,  POWR Ratings, Semiconductor & Wireless Chip,  click here

Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate.

More…

The post 2 Small-Cap Chip Stocks to Buy in December appeared first on StockNews.com

News Related

OTHER NEWS

Fortune Brands (FBHS) to Post Q4 Earnings: What's in the Offing?

Fortune Brands Home & Security, Inc. FBHS is scheduled to report fourth-quarter 2021 results on Feb 2, after market close.The company reported better-than-expected results in each of the trailing four ... Read more »

Peapack-Gladstone (PGC) Q4 Earnings and Revenues Top Estimates

Peapack-Gladstone (PGC) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.16 per share a year ... Read more »

Can Aflac (AFL) Sustain its Surprise Streak in Q4 Earnings?

Aflac Incorporated AFL is slated to report fourth-quarter 2021 earnings on Feb 2, after the market closes. – Zacks Q4 Estimates The Zacks Consensus Estimate for AFL’s fourth-quarter earnings per ... Read more »

3 Ways Employee Vacationing Increases a Company's Productivity

While vacationing may seem like a luxury, research reveals it is a necessity. Scientific evidence suggests that employees lead healthier, more productive lives by taking vacations. Despite this, many employees opt out ... Read more »

2022 Toyota Tundra Limited Review: A Great Personality

With lots of capability on and off-road, this full-size truck is a gem – as long as its face doesn’t bug you. Verdict 8.6 / 10 Design | Comfort | ... Read more »

Stocks making the biggest moves midday: Apple, Robinhood, Visa, Chevron and more

Logo on an Apple store is seen in Arlington, Virginia, January 27, 2022.Joshua Roberts | Reuters Check out the companies making headlines in midday trading. Apple — Shares of the ... Read more »

Red River Bancshares (RRBI) Q4 Earnings and Revenues Top Estimates

Red River Bancshares (RRBI) came out with quarterly earnings of $1.17 per share, beating the Zacks Consensus Estimate of $0.97 per share. This compares to earnings of $0.99 per share ... Read more »

Are Investors Undervaluing Hawkins (HWKN) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to ... Read more »

3 Oversold Retail Stocks to Grab Now

The recent market correction has driven some retail industry stocks into oversold territory. Retailers have nevertheless reported a consistent rise in sales and have surpassed earnings estimates in their last ... Read more »

Are Investors Undervaluing These Medical Stocks Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to ... Read more »

Investing in Top Penny Stocks: Why, When, and How?

Are you interested in investing in top penny stocks but don’t know where to start? This guide will provide you with all the information you need to get started. Learn ... Read more »

Should Value Investors Buy These Basic Materials Stocks?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to ... Read more »

Should Value Investors Buy Victory Capital Holdings (VCTR) Stock?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. ... Read more »

Should Value Investors Buy These Transportation Stocks?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors ... Read more »

4 Under the Radar Metaverse Stocks to Add to Your Watchlist

While the forthcoming interest rate hikes could disrupt the tech sector’s near-term performance, the potential of the metaverse to change the tech landscape is helping this sector garner immense investor ... Read more »

Are Investors Undervaluing These Oils-Energy Stocks Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are ... Read more »

Is MidWestOne Financial Group (MOFG) a Great Value Stock Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to ... Read more »

Should Value Investors Buy These Finance Stocks?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors ... Read more »

Should Value Investors Buy Polaris (PII) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors ... Read more »

Leaders Facing the Unknown: Part 2

In part one of this series, we talked about the new challenges in dealing with your business during a world-shattering pandemic. Like a Poe story, there will be lulls and moments of ... Read more »

Hiring A CEO? Use These 5 Methods to Find A Leader You Can Trust

You have the perfect business idea. It may even be working. And you are now at the crucial juncture where you want an experienced executive at the top. It’s time ... Read more »

IPO Lane| Dharmaj Crop Guard files draft papers to raise Rs 250-300 crore

Dharmaj Crop Guard IPO Agrochemicals company Dharmaj Crop Guard has filed its preliminary papers with market regulator Sebi for fund raising via initial public offerings. The public issue consists of ... Read more »

Recent Price Trend in Columbia Financial (CLBK) is Your Friend, Here's Why

Most of us have heard the dictum “the trend is your friend.” And this is undeniably the key to success when it comes to short-term investing or trading. But it ... Read more »

Even After the Market Correction, Continue to Avoid These 2 Meme Stocks

Concerns around macroeconomic factors have exacerbated stock market volatility, prompting investors to abandon holdings in speculative stocks. Furthermore, the meme stock frenzy that began last year is gradually ebbing since ... Read more »

These Are the 10 Biggest Decentralized Exchange Cryptocurrencies

Decentralized exchanges, or DEXs, are exchanges that operate in a decentralized manner, or without any interference from a third party. This type of exchange allows users to make peer-to-peer transactions, ... Read more »

Here's Why Momentum in RWE AG (RWEOY) Should Keep going

While “the trend is your friend” when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of ... Read more »

Here's How Investors Can Find Strong Business Services Stocks with the Zacks ESP Screener

Wall Street watches a company’s quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands ... Read more »

4 Telecom Stocks that Offer Growth and Value

The global telecom industry is evolving with the adoption of 5G and increasing demand for broadband services amid the remote working environment. So, we think fundamentally sound telecom companies, Lumen ... Read more »

MUFG (MUFG) Is a Great Choice for "Trend" Investors, Here's Why

While “the trend is your friend” when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of ... Read more »

Zacks Earnings ESP: A Better Way to Find Earnings Surprises for Finance

Earnings are arguably the most important single number on a company’s quarterly financial report. Wall Street clearly dives into all of the other metrics and management’s input, but the EPS ... Read more »

How Investors Can Grab Better Returns for Basic Materials Using the Zacks ESP Screener

Earnings are arguably the most important single number on a company’s quarterly financial report. Wall Street clearly dives into all of the other metrics and management’s input, but the EPS ... Read more »

Here's How Investors Can Find Strong Retail and Wholesale Stocks with the Zacks ESP Screener

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the ... Read more »

Salisbury Bancorp (SAL) is on the Move, Here's Why the Trend Could be Sustainable

When it comes to short-term investing or trading, they say “the trend is your friend.” And there’s no denying that this is the most profitable strategy. But making sure of ... Read more »

Retirement Quotes That Will Encourage You to Save

It’s a no-brainer that planning for retirement is a serious business. The fear of outliving your savings, having to keep up with Medicare deadlines, making the decision when to take ... Read more »

How to Boost Your Portfolio with Top Oils and Energy Stocks Set to Beat Earnings

Wall Street watches a company’s quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands ... Read more »

Elon Musk: Tesla Bot Is The Most Important Project For Tesla This Year

During Tesla Inc (NASDAQ:TSLA)’s fourth-quarter earnings call, CEO Elon Musk revealed that the automotive giant is betting hard on the Tesla Bot, a humanoid robot. Musk said it is “the ... Read more »

Human Design Is Your Key To Better Marketing

Have you ever felt frustrated or bitter marketing your expertise? Felt like no one is listening? Learned strategies, followed them to a T, yet generated scattered results? Those of us running smaller businesses, ... Read more »

IRS Has Important Coronavirus Stimulus Checks News for Taxpayers

More federal stimulus checks seem highly unlikely now, but many are still hoping Congress or the IRS will come up with some positive news on more stimulus money. On Wednesday, ... Read more »

How Entrepreneurs Can Benefit From Valuable Feedback

It’s safe to assume that all entrepreneurs have had to deal with unsolicited feedback at some point in their journey. When starting out, we are usually excited to share our ... Read more »

Apple Defies Wall Street Expectations With Its First Quarter Results

Apple posted its fiscal first quarter results on Thursday, vastly exceeding analyst expectations for the tech company. SOPA Images | Getty Images Apple announced that during its first quarter, which started ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic