Let’s look for some gems in a stock market that has seen significant losses.  For example, stocks whose Earnings per Share have been growing and who still have upside to their target price. This combination generally means that the stock is currently underpriced and has an upside. 

Sam Mendoza

Keep in mind when looking at low Price to Forward earnings ratios that these can revert to the mean by 1) price going up (good for bulls) 2) lower earnings guidance (horrible for bulls)

It seems we are seeing more of #2 than #1 right now, but wall street is still adjusting their forecasts for a recession and more aggressive than expected tightening. I think we still have a quarter or two before Price to Forward Earnings ratios are “normalized”

Keep in mind when looking at low Price to Forward earnings ratios that these can revert to the mean by 1) price going up (good for bulls) 2) lower earnings guidance (horrible for bulls)  It seems we are seeing more of #2 than #1 right now, but wall street is still adjusting their forecasts for a recession and more aggressive than expected tightening. I think we still have a quarter or two before Price to Forward Earnings ratios are “normalized”

Alex

Nate

Stock to Watch: Microchip Technology Incorporated (NASDAQ: MCHP)

• Microchip has suffered the same decline as other semiconductor stocks. 
• The company normally averages a Price-to-Forward Earnings of 18. 
• Currently, the Price-to-Forward Earnings is 10.7, which is historically in the first percentile.

Stock to Watch: Microchip Technology Incorporated (NASDAQ: MCHP)  • Microchip has suffered the same decline as other semiconductor stocks.  • The company normally averages a Price-to-Forward Earnings of 18.  • Currently, the Price-to-Forward Earnings is 10.7, which is historically in the first percentile.

Stock to Watch: NXP Semiconductors (NASDAQ: NXPI)

• NXP is another semiconductor company that is down so far this year. 
• The company normally averages a Price-to-Forward Earnings of 13.8. 
• Currently, the Price-to-Forward Earnings is 10.5, which is historically in the 13th percentile.

Stock to Watch: NXP Semiconductors (NASDAQ: NXPI)  • NXP is another semiconductor company that is down so far this year.  • The company normally averages a Price-to-Forward Earnings of 13.8.  • Currently, the Price-to-Forward Earnings is 10.5, which is historically in the 13th percentile.

Stock to Watch: Lam Research Corporation (NASDAQ: LRCX)

• Lam is a semiconductor company that has been tangentially impacted by the decline in technology stocks. 
• The company normally averages a Price-to-Forward Earnings of 14.3. 
• Currently, the Price-to-Forward Earnings is 9.8, which is historically in the eighth percentile.

Stock to Watch: Lam Research Corporation (NASDAQ: LRCX)  • Lam is a semiconductor company that has been tangentially impacted by the decline in technology stocks.  • The company normally averages a Price-to-Forward Earnings of 14.3.  • Currently, the Price-to-Forward Earnings is 9.8, which is historically in the eighth percentile.

Sam Mendoza

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