Scoop Up These 2 Semiconductor Stocks on Pullbacks

The semiconductor industry has been quite volatile during the ongoing chip shortage. Some semiconductor experts insist the chip shortage will last well into 2022 while others are adamant the shortage will end at some point in ’21…

The cost of automobiles, computers, smartphones, and other devices/machines that are built with computer chips is increasing due to the reduction in chip supply. Add in ongoing inflation and there is even more reason for chipmakers as well as those that sell products with these essential chips to hike prices all the more. It is clear the supply and demands dynamic combined with increased overhead costs are being passed on to the consumer.

Qorvo (QRVO – Get Rating) and Lam Research Corporation (LRCX – Get Rating) have taken a beating as a result of the chip shortage and sector uncertainty. Semiconductor industry bulls view the recent pullbacks as buying opportunities. After all, consumers have amassed a record amount of savings during the pandemic. Furthermore, consumers’ pockets are lined thanks to the stimulus payments so it only makes sense that the demand for products with chips will hold steady despite elevated prices.

Qorvo (QRVO – Get Rating)

QRVO has a B POWR Rating grade meaning it is a Buy. The stock has an A grade in the Quality component along with a B grade in the Growth and Sentiment components. Investors who would like to learn more about QRVO’s performance in the remainder of the POWR Ratings components such as Value, Stability, and Momentum can find out more by clicking here.

Of the nearly 100 stocks in the Semiconductor & Wireless Chip industry, QRVO is ranked in the top 20, slotting in at 19th. The Semiconductor & Wireless Chip sector has a B grade. You can learn more about this industry by clicking here.

QRVO will pop by 3.4% if the top analysts’ predictions hold. QRVO has an average target price of $190.50. The analysts’ highest target price for the stock is $225 while the low target price is a measly $135. All in all, 25 analysts have issued QRVO recommendations. None of these analysts view the stock as a Sell or Strong Sell. Exactly two analysts view QRVO as a Strong Buy, 15 consider the stock to be a Buy, and eight view it as a Hold.

QRVO’s forward P/E ratio of 15.78 is quite low considering the company is in the semiconductor industry. Many chipmakers have comparably high forward P/E ratios as considerable growth across posterity is baked into their prices. QRVO’s fairly low beta of 1.39 is also a boon in light of recent market volatility.

Lam Research Corporation (LRCX – Get Rating)

LRCX provides the equipment and services businesses need for semiconductor wafer processing. In short, LRCX’s equipment empowers companies that make chips to create device features that are as small as possible without sacrificing functionality. LRCX’s products are used for…

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