2 Semiconductor Stocks Raymond James is Buying

DPW shares have tripled today

Aug 19, 2019 at 2:42 PM
facebook X logo linkedin


Stocks are soaring today on upbeat U.S.-China trade headlines and stimulus buzz from overseas. Among individual names making big moves are investment name DPW Holdings Inc (NYSEAMERICAN:DPW), semiconductor supplier ON Semiconductor Corp (NASDAQ:ON), and chipmaker NXP Semiconductors NV (NASDAQ:NXPI). Here's a quick roundup of what's moving the shares of DPW, ON, and NXPI.

DPW Stock Bounces from Record Low

DPW Holdings stock shot into double-digit territory earlier today for the first time since mid-July, last seen up 202% at $6.23. The surge comes in reaction to news the company's subsidiary Digital Power Lending LLC will relaunch its online fintech site, Monthlyinterest.com. The security remains a long-term laggard, though, down 92.5% year-to-date, and fresh off an seven-week losing streak. Plus, DPW shares hit a record low of $1.57 last Friday, Aug. 16.

ON Semiconductor Rallies Into Key Resistance

ON Semiconductor shares have jumped 3.8% to $18.21, rallying as the broader chip sector pops on reports the Trump administration will allow U.S. companies to do business with Chinese telecom firm Huawei for an additional 90 days. An upgrade to "strong buy" from "market perform" at Raymond James is only stoking the bullish flames, with the brokerage firm saying ON's "reasonable valuation ... provides a favorable risk/reward for the stock."

Today's upside has the shares on track for a second straight one-day gain of nearly 4%. However, the rally is being contained near $18.75, which coincides with the stock's +10% year-to-date return, an early August bear gap, and a 38.2% Fibonacci retracement of ON's late-July peak and early August low.

Options traders are hoping for a quick reversal, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.42 registers in the 90th annual percentile, meaning long puts have been initiated over long calls at a faster-than-usual clip.

Raymond James: NXP Semiconductors "Most Attractive in Group"

Raymond James also upgraded NXP Semiconductors, raising its rating to "outperform" from "market perform." The brokerage firm said it was aware of trade-related risk, but believes "the latest estimate cuts reflect NXP shipments below end market consumption," and called the stock the "most attractive in the group."

NXPI stock was up nearly 3% earlier, but was last seen trading just fractionally higher at $103.59. Following a late-May bounce off their 200-day moving average, the shares have been making a beeline higher atop support from their 120-day trendline, now up 41% year-to-date.

Most analysts are already bullish on NXPI stock. Prior to today, 10 of 16 brokerages maintained a "buy" or better rating, with not one "sell" on the books. Plus, the average 12-month price target of $116.75 sits in territory not seen since June 2018.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI