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Is There Any Upside Left for Texas Instruments Incorporated (TXN) and Analog Devices, Inc. (ADI)?

At least we can see that matters aren’t going as badly for Analog Devices as they are for Maxim Integrated Products Inc. (NASDAQ:MXIM) . Maxim is actually up 21.6% for the year, but this rally could reverse from recent data that evidenced “a significant deceleration” in mobile phones, which makes up a little more than a third of Maxim’s sales. At 27x past earnings and near the 52-week high, the stock looks a bit expensive at this point. Analog Devices is also near its 52-week high but trades at a much more reasonable 20.6x past earnings with considerable liquidity, as indicated by the 8.4x quick ratio.

Conclusion

There is tremendous uncertainty amongst semiconductors and the companies they supply right now. While I believe the companies highlighted herein will see an operational turnaround from a recovering economy, I also believe much of the upside has been factored into the stock prices. TI, Analog Devices, and Maxim are all trading above 20x and are coming off of weak growth. I recommend avoiding the stock for better value investments.

The article Is There Any Upside Left for These Semiconductor Stocks? originally appeared on Fool.com and is written by David Gould.

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