- Tower Semiconductor (TSEM) has strong technical momentum and is trading at new all-time highs.
- Shares are up 490% over the past 52 weeks.
- TSEM maintains a 100% “Buy” technical opinion from Barchart.
- Analyst sentiment is mixed, with price targets ranging from $54 to $217 and several “Hold” ratings, reflecting valuation concerns.
Today’s Featured Stock
Valued at $22.24 billion, Tower Semiconductor (TSEM) is an independent manufacturer and service provider of semiconductor integrated circuits on silicon wafers. It provides IC design, manufacturing, and turnkey services using advanced production capabilities and the proprietary IC designs of its customers and is specializing in providing solutions for embedded non-volatile memory devices and CMOS image sensors.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. TSEM checks those boxes. Since the Trend Seeker issued a new “buy” on March 18, TSEM stock is up 33.21%.
Barchart Technical Indicators for Tower Semiconductor
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Tower Semi scored an all-time high of $203.18 on April 6.
- Tower Semi has a Weighted Alpha of +409.93.
- TSEM has a 100% “Buy” opinion from Barchart.
- The stock has gained 494.25% over the past 52 weeks.
- Tower Semi has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $188.20 with a 50-day moving average of $141.98.
- TSEM has made 14 new highs and gained 71.15% over the past month.
- Relative Strength Index (RSI) is at 64.77.
- There’s a technical support level around $184.27.
Don’t Forget the Fundamentals
- $22.24 billion market capitalization.
- 102.49x price-earnings ratio.
- Revenue is expected to grow 18.4% this year and another 26.64% next year.
- Earnings are estimated to increase by 29.23% this year and an additional 61.97% next year.
Analyst and Investor Sentiment on Tower Semiconductor
- The Wall Street analysts followed by Barchart give the stock 3 “Strong Buy” and 2 “Hold” opinions with price targets between $130 and $190.
- Value Line gives the stock its “Above Average” rating with price targets from $54 to $217.
- CFRA’s MarketScope rates the stock a “Hold.”
- Morningstar thinks the stock is 44% overvalued with a fair value of $136.96.
- 423 investors following the stock on Motley Fool think it will beat the market while 69 think it won’t.
- 13,600 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- Short interest is only 1.88% of the float with 1.00 days to cover the float.
The Bottom Line on Tower Semiconductor
The projections for increases in both revenue and earnings as well as the extremely low short interest of only 1.88% of the float normally would be all I’d need to see. However, Tower Semiconductor’s current valuation is seen as stretched, with a forward PEG ratio significantly higher than the sector median, creating a potential entry point risks for new investors.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- This Wannabe Dividend Aristocrat Yields Nearly 4%: Should You Buy?
- How Instacart Stock Could Be an Unlikely Winner From the Latest LLM Updates
- Penny Stock Xiao-I Is Surging on Apple Patent Win. Should You Buy Little-Known AIXI Now?
- New Sam’s Club Price Hikes Take Effect May 1. Should You Buy Walmart Stock First?
