The The iShares PHLX Semiconductor ETF (NasdaqGM: SOXX) is another one of 2014’s high-flying industry ETFs that has the potential to deliver more upside this year. SOXX gained nearly 30% last year.
Even with that impressive showing, the ETF “holds stocks that are generally viewed as undervalued by S&P Capital IQ.”
“One such position is in Intel (NasdaqGS: INTC)), which provided in November a 2015 business outlook with stronger revenue growth than S&P Capital IQ had originally expected. Further the company raised its annual dividend 7%. We found INTC’s guidance to be encouraging and indicating momentum within the PC and data center units. Another undervalued holding for SOXX is in Qualcomm (NasdaqGS: QCOM). At a November investor day conference, the company highlighted key growth drivers that supports 8% to 10% annualized 5-year revenue growth and with wider margins and faster EPS growth in our opinion. S&P Capital IQ believes QCOM remains well positioned for growth from smartphone devices and adjacent markets,” said S&P Capital IQ. [Chip ETF Hits a New High]
Qualcomm and Intel, SOXX’s largest and third-largest holdings, combine for 16% of the ETF’s weight.
SPDR S&P Transportation ETF
