With fabless semiconductor stocks ranking No. 1 among the 197 groups IBD tracks, Impinj stock is one of five peers snagging the highest-possible 99 Composite Rating. Broadcom (AVGO), Allegro MicroSystems (ALGM), Lattice Semiconductor (LSCC), and Rambus (RMBS) share that distinction.
In addition to Impinj (PI) and others tied for top billing among fabless chip stocks, Mobileye (MBLY), Advanced Micro Devices (AMD) and Monolithic Power Systems (MPWR) have stellar 98 ratings, meaning they’re outpacing 98% of all stocks.
And like Impinj stock, several of these highly ranked semiconductor stocks are in or near new buy zones with earnings on the horizon.
Impinj Stock Joins Ranks Of Fabulous Fabless Semiconductor Plays
Earnings season offers investors both opportunity and risk, as no one knows how a company will report or how Wall Street will react. But this crop of strong leaders in the top-ranked industry group provides a quality list of stocks to watch.
|Company||Symbol||Comp Rating||EPS Rating||RS Rating||SMR Rating||A/D Rating|
|Monolithic Power Systems||MPWR||98||99||90||A||D+|
|Advanced Micro Devices||AMD||98||80||92||B||A|
Impinj Connects The World With IoT
Headquartered in Seattle, Impinj drives global digital transformation through Internet of Things (IoT) technologies. It extends the internet’s reach from the cloud to edge connectivity devices to physical items, helping client organizations virtualize, analyze and optimize their business.
Impinj’s products are built on RAIN RFID technology, referring to RAdio frequency IdentificatioN. Its RAIN RFID tag chips provide unique identifiers and enable smart, connected devices (endpoints). Impinj reader chips provide a foundation for designing devices with embedded RAIN RFID read and write capability. And its RAIN RFID readers can identify and locate connected elements.
The company’s IoT footprint is embedded in industries ranging from retail and health care to airlines, automotive and more.
RFID Tech Drives Triple-Digit Earnings Growth
In the fourth quarter, Impinj generated 41 cents per share in earnings, a 156% spike. Analysts expect the company to follow that up with a 259% increase for Q1 and a 63% gain for the full year.
Revenue growth has ranged from 17% to 51% over the last four quarters, including a 46% gain to $76.6 million in Q4.
While Impinj did not join industry peers MBLY, AVGO, ALGM or LSCC on the list of new buys by the best mutual funds, the RFID leader has shown signs of institutional demand, including three quarters of rising fund ownership.
Impinj Stock Etches New Buy Point
With its relative strength line closing in on a new 52-week high, Impinj is just shy of a 145 buy point. Early Thursday, the stock has reversed higher toward the top of the day’s range after slipping at the open.
The current consolidation is a late-stage base, which can entail a higher chance of any breakout failing. But PI stock weathered multiple extended drawdowns in 2021 and 2022 and is now back above its 10-week moving average. Surviving that turbulence could mean Impinj is ready for a new climb if Wall Street likes the company’s earnings report late this month.
Fellow fabless semiconductor stocks Mobileye, Broadcom and Monolithic Power Systems are also setting up. Meanwhile, AMD stock is testing support at its 10-week line, where a rebound would create a follow-on entry.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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