ON Semiconductor Corp (NASDAQ:ON) â€” Zacks Investment Research issued a very positive comment on the â€śsurging semiconductor space.â€ť Summarizing their comments: The semi industry will be a prime driver and enabler of future technology, and is currently growing at an exponential rate.
Sales in January 2017 were the highest recorded in the last six years.
(In other words: If investors do not own quality stocks in this industry, they are missing out on future appreciation from one of the highest growth sectors in the U.S. stock market, My opinion.)
ON Semiconductor Corp designs and manufactures power and data management chips used by the makers of many electronic products, including appliances and automobiles.
And they are a supplier to the aerospace/defense markets. Standard & Poorâ€™s projects that ON stockâ€™s acquisition of FairChild Semiconductor at $20 per share increases the probability of higher revenues from industrial and appliance companies.
They estimate that revenues could grow 31% in 2017 with adjusted gross margins at 36% and 38% in 2017 and 2018. In their Feb. 13 Research Notes, they maintained a four-star â€śbuyâ€ť recommendation and lifted their 12-month target to $17, up from $13.
In September 2016, ON stock rallied from about $11 to $12.50, then consolidated at that range until breaking out in mid-December to $14 in February. A break-away-gap from $14.22 to $14.58 occurred on Feb. 13, 2017, which evolved into a bullish pennant with twin CBR Buys (my proprietary system) at the pennantâ€™s base at $14.91 â€“ $14.98.
The pennantâ€™s resistance line is at the 20-day moving average at $15.38.
MACD is oversold and is part of one day of high-volume profit-taking on Tuesday that was mostly overcome by high accumulation on Thursday. This high-velocity trading stock is for speculators, both short- and long-term. Buy ON at $15.25 with a trading target of $19 for a projected short-term return of over 20%.
– Sam Collins, Trade of the Day
10 Worry-Free Stocks to Survive the Coming Correction
These ultra-safe stocks rarely take a hit from the market. And even if they do, they bounce back like a rubber ball right after the dip. If youâ€™re interested in a million-dollar retirement portfolio, youâ€™ll definitely want to read this. Click here now.
Source: Investor Place