The idea for today’s Power Stock came from an email from an author in our premium stock research service, Green Zone Fortunes. (If you are not a member of Green Zone Fortunes, Click here now To find out how you can join for less than $ 5 a month!)
I was looking for a stock (United Microelectronics Corp.). [rwc_multi_symbol name=”UMC”]). I tested it on your valuations, and it came with a strong valuation 83. Can you look at that and tell me what you think?
Definitely, Patrick. Thanks for writing.
For starters, semiconductors conduct electricity. You will find them in thousands of different products from smartphones to game consoles and medical equipment.
A semiconductor needs two components: a chip and a wafer.
The chip is embedded inside the wafer, and one will not work without the other.
The chart above breaks down the global semiconductor segment by application.
By 2020, the global market value had reached $ 467 billion, with most semiconductors being used in smartphones and PCs (the two darkest green bars).
By 2030, the market will expand to $ 940 billion – a An increase of 101.3%. – As the use of semiconductors increases.
This brings me to Patrick’s question:
Today’s power stock is United Microelectronics Corp. (Symbol: UMC)One of the largest semiconductor foundries in the world.
UMC operates semiconductor wafer plants in Asia and the United States
The company builds waffles, which other companies use with their chips.
United Microelectronics shares receive a “strong bull” rating 83 out of 100 On our stock rating system, and we expect it to beat the broad market 3 times in the next 12 months.
UMC inventory: strong growth + high quality
Several items stood out regarding UMC. Here are two highlights:
- In the first quarter of 2022, UMC had operating revenues of $ 2.2 billion – An increase of 37.5% compared to the corresponding quarter last year.
- The company Increased its gross profit by 120% From the first quarter of 2021 to the first quarter of 2022.
UMC has a lot of growth potential.
The annual growth rate of earnings per share is 99%, and the growth rate of its sales is 27%. It earns a 98 On our growth index – In the top 2% of all stocks we rank.
UMC is a quality bootable inventory. its Return on equity of 24.2% Beats the average of peers in semiconductor equipment of 17%.
In addition, UMC’s gross profit of 56.5% is higher than its peers average of 44.9%.
UMC shares fell 40.2% from their 52-week high in December 2021 to a low in April.
From this slump, the stock rose 14.3% despite wider sales in the technology sector.
It has fallen 5.4% in the last 12 months, but UMC is still beating the semiconductor equipment segment, which has fallen by 10%.
United Microelectronics Corp 83 in total On our proprietary stock rating system.
That means we are “strong bulls” and expect it to beat the broad market At least three times in the next 12 months.
The demand for semiconductors has not disappeared … it is getting stronger.
UMC provides essential components for semiconductor manufacturers. That’s why UMC belongs in your portfolio.
grant: UMC’s 3.3% dividend yield means it pays shareholders $ 0.29 per share, per year to hold the stock.
Stay up to date: Car sales inventory for purchase
Remember: We are advertising Daily Stock Power Five days a week to give you access to the top companies our proprietary stock rating recognizes!
Stay tuned for the next issue, where I will share all the details about a car seller I am convinced of.
Matt Clark, CMSA®
Researcher, Money and Markets Analyst
post Scriptum Thanks again to Patrick for writing about UMC! If you have a question about a stock or a comment about Daily Stock PowerContact Feedback@MoneyandMarkets.com!
UMC Stock: Tech Buy Alert (Semiconductor Makers) Source link UMC Stock: Tech Buy Alert (Semiconductor Makers)