The Zacks Semiconductors - Radio Frequency industry is suffering from a rise in commodity prices, supply-chain constraints and the macroeconomic uncertainty arising from the ongoing Russia-Ukraine conflict. However, continued higher spending on the deployment of 5G networking, which is gaining importance from the rapid proliferation of the Internet of Things (IoT), Advanced Driver Assistance Systems (ADAS) and Augmented Reality/Virtual Reality (AR/VR) devices is a catalyst. The democratization of 5G smartphones is a tailwind for the industry players. This has bolstered demand for radio-frequency semiconductor solutions, which enhances the prospects of prominent industry players like Skyworks Solutions SWKS and RF Industries RFIL.

The Zacks Semiconductors - Radio Frequency Industry comprises companies that provide Radio Frequency solutions, Front-end Modules, low-noise amplifiers, diodes, multi-chip modules, optical components, surface acoustic wave, bulk acoustic wave  technology-based antenna-plexers, and film bulk acoustic resonator filters to enable smartphone devices to function more efficiently in congested RF spectrum. They serve a wide array of industries with their solutions finding ample application in 5G and smartphone equipment, aerospace and defense, optical networks, cellular base stations, automotive and smart home applications. Most of these companies utilize robust wafer fabrication technologies as well as ZigBee, Bluetooth Low Energy, Thread, silicon germanium and Gallium Nitride technologies to stay ahead of competition.

3 Trends Influencing the Prospects of the Semiconductors - RF Industry

Accelerated Deployment of 5G is a Tailwind: The rapid implementation of 5G networking infrastructure and robust adoption of cloud computing applications hold promise for the wireless communication market. The coronavirus crisis-induced work-from-home wave has necessitated the need for higher bandwidth and triggered LTE advancements, which are expected to bolster demand for RF power amplifiers. Increasing RF content in the latest 5G smartphones is a key catalyst. Moreover, demand recovery in the smartphone market is likely to aid the prospects of major industry players. 5G smartphone shipments are projected to account for more than 60% of global volume in 2022, per IDC estimates. Innovation is Opening Up New Business Avenues: The rapid proliferation of IoT, wearables, drones, VR/AR devices, autonomous cars, and ADAS is expected to drive demand for RF semiconductor products beyond smartphone devices, which favors industry prospects. Notably, RF Semiconductors are setting the pace for technology modernization, consequently digitizing aspects like connectivity, healthcare, transport and defense, among others. Diversified utilization of RF Semiconductor products bodes well for the industry players. Moreover, the evolution of semiconductor manufacturing processes from 10 nanometer (nm) to 7 nm and even 5 nm and 3 nm technology is anticipated to bolster the industry’s prospects. Further, the roll-out of new bands and band combinations has led to considerable design challenges for OEM smartphone manufacturers. The industry participants are looking to address these challenges with a robust range of antenna-plexers portfolios utilizing the BAW technology. Supply Chain and Higher Commodity Cost to Hinder Prospects: The industry players are reeling under the impacts of supply-chain constraints as well as the negative impact of the ongoing Russia-Ukraine war. Additionally, volatility in prices of certain commodities like copper doesn’t bode well for industry participants. Moreover, the lingering impact of COVID-induced lockdowns in China (particularly Shanghai) increases uncertainty. Markedly, the industry players generate a significant portion of their revenues from China.

Zacks Industry Rank Indicates Dim Near-Term Prospects

The Zacks Semiconductors - Radio Frequency Industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #173, which places it at the bottom 31% of more than 250 Zacks industries. The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bearish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group’s earnings growth potential. The industry’s earnings estimate for 2022 has moved down 22% since Aug 31, 2021. Despite the gloomy outlook, there are a couple of stocks worth watching in the industry. But before we present the top industry picks, it is worth looking at the industry’s shareholder returns and current valuation first.

Industry Lags S&P 500 & Sector

The Zacks Semiconductors - Radio Frequency Industry has underperformed the S&P 500 and its sector over the past year.

The industry has declined 38.8% over this period against the S&P 500’s decline of 3.3% and the broader sector’s drop of 16.8%.

On the basis of forward 12-month price-to-earnings ratio (P/E), which is a commonly used multiple for valuing Semiconductors - Radio Frequency stocks, the industry is currently trading at 11.41X, lower than the S&P 500’s 18.63X and the sector’s 23.44X. Over the past five years, the industry has traded as high as 23.62X and as low as 8.89X, with the median being at 13.98X, as the charts below show.

Forward 12-Month P/E Ratio

2 Radio Frequency Stocks to Keep a Close Eye on

RF Industries: This Zacks Rank #3 (Hold) company is riding on strong demand for its RF coaxial cable and connector products and C-Enterprises faster and fiber products as well as Optiflex hybrid fiber solutions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Growing demand for wireless carrier infrastructure builds for 5G is a tailwind for RF Industries. Increased spending from carriers deploying 5G bodes well for RFIL. The acquisition of Microlab is contributing meaningfully to RF Industries top-line growth. RF Industries’ shares have dropped 8.7% year to date. The Zacks Consensus Estimate for RF Industries’ fiscal 2022 bottom line is pegged at 48 cents per share, unchanged over the past month.

Skyworks Solutions: This Zacks Rank #3 company is benefiting from accelerated 5G deployment and increasing demand for Wi-Fi 6 solutions. Broad markets benefited from strong demand for the company’s solutions for automotive, industrial, data center and network infrastructure end-markets. Skyworks’ solutions are now being used by the likes of Cisco, Orange, Verizon and Google. Skyworks’ Sky5 product portfolio facilitates several 5G smartphone launches and its offerings have been selected by Samsung and Google. Skyworks’ diversified portfolio positions it well to capitalize on momentum witnessed across driverless vehicle providers as well as high-power industrial and IoT applications. Shares of Skyworks have declined 28.2% year to date. The Zacks Consensus Estimate for Skyworks’ fiscal 2022 earnings has increased 0.9% to $11.11 per share over the past 30 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report   Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report   RF Industries, Ltd. (RFIL) : Free Stock Analysis Report   To read this article on Zacks.com click here.

Skyworks Solutions (SWKS) introduces network synchronization to ride on organic growth and diversify its revenue resources.

Follow Buffett’s lead. And collect big dividends too.

Finally, investors have a good reason for why the U.S. stock market will suffer above-average volatility and below-average performance this month: It’s the Fed. Relatively few advisers are focusing on this outcome — at least among the more than 100 I regularly monitor.

Cathie Wood's ARK Invest cut its stake in Nvidia ahead of the graphic chipmaker's results last month. Now it's snapped up the stock which has dropped to a 52-week low.

Perhaps not: One fund manager that successfully navigated the past two major stock crashes is bracing for an awful end to the year because it fears the Federal Reserve’s quiet exit from bonds. London-based Ruffer LLP is concerned that the accelerating runoff of the Fed’s Treasury holdings will suck liquidity out of the markets—just as rising rates and falling stock and bond prices increase the need for cash to smooth the drop. “It puts a pincer on equities and bonds at the same time,” said investment director at Ruffer.

Orchid Island Capital Corp. (NYSE: ORC) is a finance company that acquires, invests in and offers financing from U.S. residential mortgage-backed securities (MBS). The Florida mortgage real estate investment trust (REIT) initiated an IPO in March 2013 at a price of $14.50. Its monthly dividend of $0.135 returned an approximate annual yield of 11%. However, in the last few years, the stock price has floundered, and ORC has reduced its dividend payment several times. Orchid’s price had recently be

The major stock market indexes relinquished morning gains in afternoon trading on Friday, dropping to lows for the day. Market players hit the exits on news that Russia will suspend natural gas pipeline shipments to Germany. The Nasdaq changed course, now down 0.5%. The S&P 500 has shed 0.2% while the Dow Jones Industrial Average has dropped 0.2%. The Russell...

Shat should investors do now if they are considering making a bet on the infamously volatile sector.

For many years, dividend stocks were one of the few places where investors could find decent yields in a world of ultralow rates. A 10-year Treasury bond was dealing out an emaciated 1.3% a year ago, less than half the 3% yield in dividend-rich sectors like utilities. “There’s a lot more income today than there was at the start of the year,” says Kelsey Berro, a portfolio manager at J.P. Morgan Asset Management.

Chinese stocks have come under pressure for various reasons over the past year and a half or so; a slowing economy has been one cause while domestic tussles with the regulators haven’t helped either, particularly for those in the tech sector. Another element keeping sentiment low and impacting performance has been the fear of de-listing for U.S.-listed Chinese stocks. This is on account of Chinese companies not meeting U.S. auditing standards. But the prospects of de-listing might be less likely

High oil and gas prices are boosting the energy sector as these stocks have widely outperformed the S&P 500 Index. It's no wonder: Demand for refined products remains strong and global supply is tight. It also produces renewable diesel and has a midstream segment, Valero Energy Partners LP, but its contribution to total earnings is under 10%.

Warren Buffett came to the rescue of Occidental Petroleum (NYSE: OXY) in 2019 when the company was financially struggling through an acquisition. Buffett's holding company Berkshire Hathaway is no stranger to the oil and gas industry, and here is why Occidental could be an excellent fit for the company's long-term portfolio. Occidental Petroleum is an upstream oil and gas company, which means it deals in the exploration for and extraction of oil and gas from the ground.

NIO Inc. stock is trending on the Yahoo Finance Platform. Here is a visualization of $NIO performance over time, how that performance compares to the wider industry, and analyst projections for the current quarter. Check out the ticker page here.

(Bloomberg) -- Amazon.com Inc., determined to reduce the size of its sprawling delivery operation amid slowing sales growth, has abandoned dozens of existing and planned facilities around the US, according to a closely watched consulting firm. Most Read from BloombergAmazon Closes, Abandons Plans for Dozens of US WarehousesEurope’s Energy Crisis Deepens After Russia Keeps Pipeline ShutUK Slips Behind India to Become World’s Sixth Biggest EconomyApple’s Car Is Beloved Before It Even ExistsElizabe

Elon Musk fears neither his competitors nor the regulators. The CEO of Tesla has not hesitated to attack the powerful US Securities and Exchange Commission (SEC) with which he has had a stormy relationship since his now famous tweet of August 7, 2018 in which he announced that he was going to take the manufacturer of electric vehicles private. This message had prompted an investigation by the SEC which had subsequently resulted in a settlement.

The stock plummeted after the U.S. government imposed new licensing requirements for advanced chip sales. Jefferies believes the contraction presents a buying opportunity.

Investors initially cheered the payrolls report, but then the market sold off on fears of big rate hikes. Is it time to worry about quantitative tightening?

In this article, we will discuss some of the best stocks to buy according to Dave Smith, Chief Investment Officer at investment management company Rockland Trust. If you want to explore similar stocks, you can also look at Long-Term Analyst: Buy These 5 Stocks. David Smith has been in the financial services industry for over […]

Some investors will be getting a bit of money back soon, the result of a big settlement between financial firm Vanguard and the Massachusetts Secretary of State. The $6.25 million settlement has to do with allegations that the firm failed … Continue reading → The post Does Vanguard Owe You Money? It's Paying Investors Millions appeared first on SmartAsset Blog.

(Bloomberg) -- A big pandemic-era distortion in the world of finance is well and truly over -- and the new normal is helping fuel the worst cross-asset selloff in decades. Most Read from BloombergAmazon Closes, Abandons Plans for Dozens of US WarehousesEurope’s Energy Crisis Deepens After Russia Keeps Pipeline ShutUK Slips Behind India to Become World’s Sixth Biggest EconomyApple’s Car Is Beloved Before It Even ExistsElizabeth Holmes Judge Upholds Conviction in Preliminary RulingAfter being trap