The cell phone industry is projected to increase year over year sales by 10% and RFMD supplies parts that are included in over half of all cell phones sold. This year they experienced a 70% increase is sales of their 3G hardware and they are deeply in development of their 4G product line.
Wall Street brokerages are high on this stock and have 13 buy recommendations distributed to their clients. Sales are projected to increase by 11.40% this year and 5.60% next year. Earnings are estimated to increase by 26.00% this year, 7.90% next year and continue at an annual rate of 15.00% for at least 5 years.
Technically the stock is on the move. The stock hit 12 new highs in the last 20 session and Barchart's technical indicators have 11 out of 13 buy signals for an 80% short term buy rating. The 14 day Relative Strength Index is 66.01% and rising. The price has appreciated by 20.83% in the last month and recently traded at 5.20 well above its 50 day moving average of 4.34.
The regular investor has discovered this stock and investor sentiment as measured by the CAPS members on Motley Fool vote 667 to 38 that the stock will beat the market with the All Stars voting 145 to 3. Fool notes that of the Wall Street columnists they follow 14 of the last 15 articles have been positive.
Points you should consider are:
- Wall Street buy reports to clients based on projections of increases in sales and earnings
- Recent price momentum including 12 new highs in the last 20 trading sessions
- Barchart short term buy signal of 80%
- A large and positive investor sentiment
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in the stock mentioned at the time of publication
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