Technology stocks, especially semiconductor stocks, work well in alternative portfolios that are focused on eco-friendly energy and efficient technologies. The semiconductor market is built entirely around efficiency, with chipmakers forever looking for ways to increase performance with reduced materials and costs. Himax Technologies Inc. (NASDAQ: HIMX) is a bargain tech stock worth considering.
This company develops semiconductor products used for VR devices, smartphones, digital displays, televisions, and other devices. Its revenue increased by 46% in the third quarter of the year. Revenue from the fourth quarter is projected to increase by 58%, while revenue growth for all of 2020 is expected to increase by 31%. For the current year, revenue is expected to increase by another 21%.
Sales growth momentum is helping the company to improve its earnings. For full-year 2020, analysts expect earnings of $0.30 per share, compared to the loss of -$0.07 the year before. Earnings for full-year 2021 are expected to increase to $0.45 per share.
This stock has grown since we last reported on it, but it pulled back on Wednesday as part of a wider market rout. Now could be the perfect time to pick up Himax at its best price of the year so far, and hold it for its expected long-term upside.
- 1 Year Price Growth: 91%
- YTD Price Growth: 96%
- 3 Month Price Growth: 23%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.