2 Semiconductor MANGO Stocks Trading Near 52-Week Lows As They Head Into Q1 Earnings

Author: Surbhi Jain | April 25, 2024 03:14pm

Semiconductor stocks have been in the spotlight lately, with ON Semiconductor (NASDAQ:ON) and Globalfoundries Inc (NASDAQ:GFS) trading near their 52-week lows.

These companies are part of the MANGO acronym, a term introduced by BofA Securities analyst Vivek Arya. ON and Globalfoundries — along with Marvell Technology (NASDAQ:MRVL), Advanced Micro Devices, Broadcom (NASDAQ:AVGO), Analog Devices Inc (NASDAQ:ADI) and Nvidia Corp (NASDAQ:NVDA) — are sector leaders and aim to mirror the success of FAANG stocks.

We highlighted these stocks earlier in our analysis: What Is The Most Undervalued MANGO (Semiconductor) Stock Right Now?

ON Semiconductor, currently trading at around $66, has a 52-week range of $59.34 – $111.35, with the low of $59.34 recorded on April 22. On reports Q1 earnings on April 29, before the market open.

Globalfoundries, trading at around $48, has a 52-week range of $45.52 – $68.57, with the low of $45.52 also recorded on April 22, 2024. GFS reports Q1 earnings on May 7, before the market open.

MANGO Stocks Performance Overview

A look at the one-year price performance of MANGO stocks shows a mix of growth trajectories.

• Nvidia leads the pack with an impressive surge of +194.64%
• Broadcom follows with +116.45%
• Advanced Micro Devices boasts +98.07%.
• Marvell and Analog Devices also showcased notable gains
• GlobalFoundries and ON Semiconductor presented more modest figures, with declines of -22.42% and -11.90%, respectively.

MANGO Stocks (Semis)
Symbol		Price	52W Range ($)	YTD Perf	1Y Perf	3Y Perf
NVDA		796.77	266.25 974.00	60.89%	194.64%	421.95%
ON		65.53	59.34 111.35	-21.55%	-11.90%	54.01%
AVGO		1,256.82	601.29 1,438.17	12.59%	98.07%	169.63%
ADI		196.5	154.99 204.20	-1.04%	5.10%	23.57%
GFS		47.31	45.52 68.57	-21.93%	-22.42%	–
AMD		151.74	81.02 227.30	2.94%	73.28%	83.35%
MRVL		64.85	37.71 85.76	7.53%	67.31%	40.67%

Data Source: Seeking Alpha

With ON and Globalfoundries are trading around their 52-week lows, investors wonder whether they hold value. Let’s look at the valuations.

Most Undervalued MANGO Stock

Delving into the valuation metrics, ON Semiconductor and GLOBALFOUNDRIES appear to be undervalued compared to their peers.

We compared the MANGO stocks on the following basis:

1. Price-to-Earnings (P/E) Ratio: so investors can assess the relative valuation of MANGO stocks based on their earnings generation.
2. Enterprise Value-to-Sales (EV/Sales) Ratio: MANGO stocks may not have consistent profits but have strong revenue growth.

Symbol	P/E FWD	EV / Sales
NVDA	31.88	31.94
ON	15.32	3.55
AVGO	26.57	16.63
ADI	32.63	8.92
GFS	35.18	3.34
AMD	41.98	10.7
MRVL	45.49	10.82

Data Source: Seeking Alpha

ON and Globalfoundries are relatively better valued than their MANGO stock peers.

Analysts also see potential in investing in these stocks:

• ON Semiconductor commands a consensus price target of $73.33, suggesting an implied upside of 11.45% based on recent analyst ratings.
• Globalfoundries is pegged with a consensus price target of $60.33, hinting at a potential 27.26% upside, as per the latest analyst assessments.

As the semiconductor industry evolves, prudent analysis and strategic investment decisions will be pivotal in navigating this dynamic landscape.

With varied performance trajectories and distinct valuation metrics, investors have diverse options to consider within the MANGO portfolio.

Read Next: Intel’s Inventory Issues: Redditors Highlight How Overstock ‘Killed Their Margins,’ Yet Analysts See Upside

Image: Shutterstock

Posted In: ADI AMD AVGO GFS MRVL NVDA ON