Semiconductor stocks have easily beaten the broader market. Furthermore, some still offer incredible values.
The semiconductor stocks have been in a sweet spot in the market. Chip companies are taking advantage of industries transforming themselves in a new technological age.
Still, there’s plenty of value in the industry. However, you must know where to look.
The #semiconductor industry is represented by the PHLX Index SOX. That index has easily outperformed the broader market.
Shares in the PHLX Index trade for a weighted 23.1 times the past 12 months’ reported earnings. Meanwhile the S&P 500 trades a bit lower, at 21.6 times. Both are at relatively high levels. However, both are also supported by record earnings and accelerating economic growth in the U.S.
If we look ahead, the PHLX Index is valued at 17.3 times consensus earnings estimates for the next 12 months.