Fairchild Semiconductor Intl Inc (FCS): Don’t Miss This Stock Trading Near its 52-Week Low

The next iPad mini is expected to be fitted with a retina display, and is one of the most anticipated devices this year. It seems that the mini version of the iPad is now much more in demand than its elder sibling, and this should help it create new records when it’s launched. Apple Inc. (NASDAQ:AAPL)’s iPad mini was certainly a great move by the company as it helped it grab a pie of the smaller form factor tablet market. And a retina display should do wonders for it later this year, and fill up Fairchild Semiconductor Intl Inc (NYSE:FCS)’s coffers in the process.

Moreover, as reported by Reuters, Samsung is Fairchild’s largest customer, and this should enable it to profit from the Korean giant’s continued advancement in the tablet market. After doubling its tablet share last year, the proliferation of Android tablets could be a boon for Samsung, and it might double its share once again this year, according to Jeff Orr of ABI Research.

However, as Orr points out, competition from other Android tablet manufacturers could slow down Samsung’s advance, and this is where Fairchild’s Apple account will come into play. Moreover, Fairchild Semiconductor Intl Inc (NYSE:FCS)’s management is excited about the advent of wearable computing devices, and believes that the company has the expertise to satisfy the power demands of such devices.

Whether Fairchild is hinting at Apple’s rumored iWatch or one of Samsung’s moves into this arena is still unclear, but we should surely keep an eye on this wearable computing development at Fairchild as it could be a major opportunity.

Why invest

Although the company missed on the bottom line in the previous quarter, posting a loss of $0.02 a share while analysts expected profit $0.04, things should get better on this front. Gross margin is expected to be around 30%-31% on the back of higher factory utilization and a better product mix, up from 28% in the previous quarter.

Thus, with the stock trading tantalizingly close to its 52-week low, investors should think of initiating a position in Fairchild. A diversified business and growth in end-markets indicate that it might prove to be a winning investment.

The article Don’t Miss This Stock Trading Near its 52-Week Low originally appeared on Fool.com and is written by Harsh Chauhan.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.