3 Semiconductor Stocks To Buy After Strong Earnings For 2020 Chip Growth

U.S. stocks climbed once again Thursday as Wall Street shakes off coronavirus fears, at least for now. There are plenty of reasons to be positive about the market, from strong quarterly earnings results from giants such as Apple (AAPL - Free Report) and Microsoft to better-than-expected job growth and more.

Corporate earnings growth is expected to return in 2020, after a hard to compare 2019, with tech set to play its part. And the historically cyclical semiconductor industry also looks poised to bounce back in 2020 after a down year in terms of sales and earnings.

Industry heavyweights Samsung (SSNLF - Free Report), Intel (INTC - Free Report), and Taiwan Semiconductor Manufacturing Co. (TSM - Free Report) have already posted solid quarterly results and raised their outlooks.

With this in mind, we found three highly-ranked semiconductor stocks that recently topped earnings estimates that investors might want to consider buying right now…

STMicroelectronics N.V. (STM - Free Report)

STMicroelectronics designs, develops, manufactures, and markets semiconductor integrated circuits and discrete devices. The firm is expected to expand within IoT, smart driving, the transition to 5G, and much more. STM easily topped our Q4 earnings estimate last month and its revenue popped 4% from the year-ago period.

Since then, analysts have raised their earnings estimates, which helps STM sport a Zacks Rank #1 (Strong Buy). STMicroelectronics also holds “B” grades for Growth and Momentum in our Style Scores system, pays a dividend, and has returned value to shareholders through buybacks.

Our Zacks estimates call for STMicroelectronics’ fiscal 2020 revenues to jump 12.3%, with 2021 projected to come in 9% higher to $11.7 billion. Meanwhile, its adjusted earnings are expected to surge 33% and 22%, respectively over this stretch. Plus, STM executives plan to invest $1.5 billion in CAPEX for 2020 to help it reach its longer-term growth goals.

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