Semiconductor stocks have been in the spotlight lately, with ON Semiconductor ON and Globalfoundries Inc 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 MRVL, Advanced Micro Devices, Broadcom AVGO, Analog Devices Inc ADI and Nvidia Corp 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:
- Price-to-Earnings (P/E) Ratio: so investors can assess the relative valuation of MANGO stocks based on their earnings generation.
- 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.
Image: Shutterstock
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