Rising demand for chips in 2013 should give a much-needed boost to this U.S. stock.
I'm talking about the flagging stock of semiconductor equipment manufacturer Applied Materials (Nasdaq: AMAT).
Investors have been down on AMAT lately.
Applied Materials lowered its guidance for the year just last week, acknowledging concerns over a decline in technology spending. Such worries had already dinged the stock, which had fallen from a 2012 high of $13.21 on Feb. 16 to about $11 July 09.
Since the company announced its profits for the year would come in at 15 to 20 cents per share lower than previous projections, AMAT has slumped further to around $10.39.
But given the company's financial strength, solid position in its market and signs of a turnaround in chip demand for 2013, this pullback could represent a buying opportunity.
"[Applied Materials] is the biggest player in the industry, and it's got a deep and well-established economic moat," writes Jonas Elmerraji of The Street. "That means that once the semiconductor waiting game is over, AMAT should be able to deliver impressive numbers once again."
Santa Clara, CA-based Applied Materials makes most of its money from selling semiconductor chip-making equipment to foundries like Intel Corp. (Nasdaq: INTC) and Taiwan Semiconductor Manufacturing Co. (NYSE ADR: TSM).
Those companies sell chips to the companies that make the computer, tablets, smartphones and other electronic gear, such as Apple Inc. (Nasdaq: AAPL), Hewlett-Packard Co. (NYSE: HPQ) and Samsung Electronics Co. (PINK: SSNLF).
Applied Materials also sells equipment for the manufacturing of solar panels and LCDs, though both of those divisions are significantly smaller than the semiconductor division. Still, the troubles of the solar industry over the past year also have stung AMAT.
But as often happens, it's when things look most glum that investors need to pay closer attention.
top 10 us stocks
Article Index
U.S. Stocks: Applied Materials (Nasdaq: AMAT) To Cash in On Mobile Growth
To continue reading, please click here...
U.S. Stocks: Discount Retailers Bank Triple-Digit Gains in Troubled Economy
The changing shopping habits of a pressured middle class continue to boost the fortunes of one group of U.S. stocks in particular - discount retailers.
Almost all discount retailers have profited from the Great Recession, but those on the lowest rungs, such the dollar stores, have gained the most.
The recent same-store sales retail report for June confirmed this trend as the U.S. economy continues to falter.
Same-store sales for several mid-tier retailers got hit hard, while most discount retailers outperformed. Notably, most high-end retailers, such as Nordstrom Inc. (NYSE: JWN) and Saks Inc. (NYSE: SKS) also continued to do well.
"The high-end consumer has fared particularly well throughout this recovery,"Ken Perkins, president of Swampscott, MA-based Retail Metrics, told Bloomberg News. "On the low end, a lot of middle-income consumers have traded down."
As a result, two discount retailers fared better in June than analysts expected.
Almost all discount retailers have profited from the Great Recession, but those on the lowest rungs, such the dollar stores, have gained the most.
The recent same-store sales retail report for June confirmed this trend as the U.S. economy continues to falter.
Same-store sales for several mid-tier retailers got hit hard, while most discount retailers outperformed. Notably, most high-end retailers, such as Nordstrom Inc. (NYSE: JWN) and Saks Inc. (NYSE: SKS) also continued to do well.
"The high-end consumer has fared particularly well throughout this recovery,"Ken Perkins, president of Swampscott, MA-based Retail Metrics, told Bloomberg News. "On the low end, a lot of middle-income consumers have traded down."
As a result, two discount retailers fared better in June than analysts expected.
To continue reading, please click here...
Three U.S. Stocks to Keep an Eye on as Earnings Season Unfolds
It's a proven fact -- stock prices eventually follow earnings.
So as we enter second-quarter earnings season, an avalanche of corporate reports will likely set the tone for the stock market for the next six weeks.
If companies report healthy profits, stock prices are destined to charge higher. If earnings are flat or even begin show losses -- look out below. U.S. stocks could tumble.
Either way, investors can expect increased volatility as earnings season kicked into high gear today with JPMorgan Chase (NYSE: JPM).
That's especially true when certain bellwether stocks report results. A bellwether stock, is loosely defined as company that tends to create, influence or set trends.
With that in mind, let's take a look at how earnings season is shaping up along with three stocks that will provide early clues about what might be coming for the rest of the market.
Historically, the S&P 500 has rallied 67% of the time during earnings season, posting positive returns of roughly 3%. By comparison, stocks have dropped by 1.46% in between earnings seasons.
But we may not have much reason to cheer this time around.
Wall Street analysts project a 1% decline in second-quarter 2012 S&P 500 operating earnings, according to Capital IQ consensus earnings expectations.
The last time companies were this negative coming into an earnings season was the fourth quarter of 2008, when the financial crisis was wreaking havoc on the U.S economy.
Here's why...
So as we enter second-quarter earnings season, an avalanche of corporate reports will likely set the tone for the stock market for the next six weeks.
If companies report healthy profits, stock prices are destined to charge higher. If earnings are flat or even begin show losses -- look out below. U.S. stocks could tumble.
Either way, investors can expect increased volatility as earnings season kicked into high gear today with JPMorgan Chase (NYSE: JPM).
That's especially true when certain bellwether stocks report results. A bellwether stock, is loosely defined as company that tends to create, influence or set trends.
With that in mind, let's take a look at how earnings season is shaping up along with three stocks that will provide early clues about what might be coming for the rest of the market.
Predicting a Down Quarter for U.S. Stocks
Typically, earnings season is good for stocks.Historically, the S&P 500 has rallied 67% of the time during earnings season, posting positive returns of roughly 3%. By comparison, stocks have dropped by 1.46% in between earnings seasons.
But we may not have much reason to cheer this time around.
Wall Street analysts project a 1% decline in second-quarter 2012 S&P 500 operating earnings, according to Capital IQ consensus earnings expectations.
The last time companies were this negative coming into an earnings season was the fourth quarter of 2008, when the financial crisis was wreaking havoc on the U.S economy.
Here's why...
To continue reading, please click here...
We Warned You U.S. Stocks Could Plunge - Here's the Safety Play You Need to Make Now
U.S. stocks reversed course in the final minutes of trading yesterday (Monday) to push the Dow Jones Industrial Average back over 11,000 - but that still wasn't enough to make a dent in the index's 4.8% loss so far this month.
Europe debt fears and dismal economic news have caused the Dow to fall in five of this month's seven trading sessions, each time by more than 100 points.
We warned you September would be a tough market month - several times.
What's more, we showed you how to protect yourself.
Europe debt fears and dismal economic news have caused the Dow to fall in five of this month's seven trading sessions, each time by more than 100 points.
We warned you September would be a tough market month - several times.
What's more, we showed you how to protect yourself.
To continue reading, please click here...