The global economy has been taking steps to boost semiconductor production to tackle an ongoing chip shortage through multibillion-dollar public and private investments. The semiconductor industry reported record-high sales last year. The Semiconductor Industry Association (SIA) announced that global semiconductor sales amounted to $555.90 billion in 2021, up 26.2% year-over-year.
The automotive industry, data centers, smartphones, and various industrial applications are contributing to the growing demand for semiconductors. Fifth Generation (5G) technology and a shift to electric and hybrid vehicles are expected to spur the semiconductor industry's growth in 2022. Global semiconductor sales are expected to achieve 8.8% growth in 2022 due to increased production capacity to meet the growing demand.
Given these factors, we think it could be profitable to invest in quality semiconductor stocks ROHM Co., Ltd. (ROHCY), Xperi Holding Corporation (XPER), and NVE Corporation (NVEC), which are currently trading near their 52-week price lows.
Click here to checkout our Semiconductor Industry Report for 2022
ROHM Co., Ltd. (ROHCY)
ROHCY is a Kyoto, Japan-based company that manufactures and markets electronic components. The company operates in three segments: Large-Scale Integration (LSI); Semiconductor Device; and Module. ROHCY’s product portfolio includes analogs, memories, Micro Electromechanical Systems (MEMS), diodes, transistors, semiconductor lasers, optical modules, resistors, and tantalum capacitors.
ROHCY's net sales increased 28.3% year-over-year to ¥338.19 billion ($2.93 billion) in the first nine months of the year, ended Dec. 31, 2021. The company's gross profit rose 21.6% year-over-year to ¥219.30 billion ($1.90 billion). ROHCY’s operating profit increased 129.7% from its year-ago value to ¥56.20 billion ($486.32 million). And its profit before income taxes grew 194.9% year-over-year to ¥62.04 billion ($536.86 million). The company’s profit attributable to owners of the parent increased 156.1% year-over-year to ¥48.41 billion ($418.91 million). And ROHCY’s net income per share grew 156.5% year-over-year to come in at ¥493.37.
The $3.82 billion consensus revenue estimate for its fiscal year 2022, ending March 2022, represents 37% year-over-year growth.
The stock gained marginally in price intraday and closed yesterday's trading session at $41.14. The stock is currently trading 4.2% above its 52-week low of $39.50, which it hit on January 28, 2022.
ROHCY'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.
ROHCY has an A grade for Stability and a B for Growth and Value. Within the A-rated Semiconductor & Wireless Chip industry, it is ranked #24 of 97 stocks. To see additional POWR Ratings (Momentum, Sentiment, and Quality) for ROHCY, click here.
Xperi Holding Corporation (XPER)
XPER is a global consumer and entertainment product licensing company. It operates in two segments: Product; and Intellectual Property Licensing. The San Jose, Calif.-based company develops and delivers various technologies and licenses audio, digital radio, edge-based machine learning, and multi-channel video user experience solutions. XPER provides its technologies under the DTS, HD Radio, TiVo, and IMAX Enhanced brands.
In January, XPER launched its revolutionary single camera solution that enhances driver and occupancy monitoring and sensing functionality. This cost-effective, quality-centric, easy-to-integrate system offers critical safety capabilities. The innovative launch is expected to extend the company’s customer reach and boost revenue streams.
In its fiscal third quarter, ended Sept. 30, 2021, XPER's total revenue increased 8.2% year-over-year to $219.38 million. Its operating income increased 120.7% year-over-year to $3.93 million. And in the third quarter, its net income attributable to the company came at $59.91 million, and its earnings per share attributable to the Company came at $0.53.
The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of all the trailing four quarters.
Shares of XPER have gained 3.6% in price over the past five days and closed yesterday’s trading session at $17.15. The stock is currently trading 8.3% above its 52-week low of $15.84, which it hit on Feb. 4, 2022.
The stock has an overall B rating, which translates to Buy in our proprietary rating system. XPER has a B grade for Value, Sentiment, and Quality. It is ranked #35 of 97 stocks in the Semiconductor & Wireless Chip industry. Click here to see XPER ratings for Momentum, Stability, and Growth.
NVE Corporation (NVEC)
Eden Prairie, Minn.-based NVEC develops, markets, and sells spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information in the U.S. and internationally. The company offers spintronic products, including sensors and couplers for the factory automation market, and markets medical sensors for medical devices. In addition, it conducts R&D and licensing of spintronic random access memory technology.
For its fiscal 2022 nine months, ended Dec.31, 2021, NVEC’s total revenue grew 30.7% year-over-year to $20.27 million. Its gross profit increased 23.1% year-over-year to come in at $15.57 million. The company's net income grew 24.9% from the year-ago value to $10.69 million, and its income per share increased 24.9% from the year-ago value to $2.21. NVEC's total current assets increased 63.3% over nine months ended Dec. 31, 2021, to come in at $39.78 million.
The stock gained 3.2% in price intraday to close yesterday's trading session at $57.20. It is currently trading 3.5% above its 52-week low of $55.27, which it hit on Feb.14, 2022.
Our POWR Ratings system gives NVEC a grade of A for Quality. Among the 97 stocks in the A-rated Semiconductor & Wireless Chip industry, it is ranked #50.
Click here to see the additional ratings for Momentum, Growth, Sentiment, Value, and Stability for NVEC.
Click here to checkout our Semiconductor Industry Report for 2022
ROHCY shares were trading at $41.14 per share on Wednesday afternoon, up $0.24 (+0.59%). Year-to-date, ROHCY has declined -8.60%, versus a -6.62% rise in the benchmark S&P 500 index during the same period.
About the Author: Mangeet Kaur Bouns
Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions.
3 Buy-Rated Semiconductor Stocks Trading Near 52-Week Lows StockNews.com
