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.
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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