This is the Most Stable Semiconductor Stock and Here's Why

Cirrus Logic stock is trading at its highest level in 10 months

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Cirrus Logic, Inc. (NASDAQ:CRUS) is an American semiconductor supplier that has taken a backseat lately to sector-adjacent names like Nvidia (NVDA) or Intel (INTC). But CRUS is red hot right now, last seen up 3.4% to trade at $91.44, on track for its highest close since mid-February.

The stock has tacked on 11% this quarter and is headed toward its fifth-straight day of gains, a streak that's allowed CRUS to reclaim its year-to-date breakeven level. Unfortunately, there's not a lot of pessimism that can be unwound; the majority of analysts rate CRUS a "buy" or better and a slim 1.5% of the stock's total available float is sold short.

From a fundamental point of view, between fiscal 2017 and fiscal 2018, Cirrus Logic’s revenues declined 23% and its net income fell a massive 44%. However, since then, the semiconductor supplier has maintained steady annual top- and bottom-line growth. CRUS has grown its revenues 11% since fiscal 2020 and 28% since fiscal 2018. Cirrus Logic has also increased its net income 11% since fiscal 2020 and a jaw-dropping 169% since fiscal 2018.

Furthermore, the chip company holds a balance sheet with $395 million in cash and $137 million in total debt, rounding out their strong fundamentals. Overall, at a forward price-earnings ratio of 14.04, Cirrus Logic stock presents itself as a viable value play for long-term investors.

What's more, the security's Schaeffer's Volatility Scorecard (SVS) sits at 72 out of 100, meaning the shares have often realized higher volatility than the options pits have priced in -- a potential boon for premium buyers.


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