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Stock impact report

2 Semiconductor Stocks with Promising Prospects and 1 We Brush Off [Yahoo! Finance]

Penguin Solutions, Inc. (PENG) 
Company Research Source: Yahoo! Finance
This secular trend bodes well for the industry, which has posted a six-month gain of 39.7% and beat the S&P 500 by 26.7 percentage points. Although these businesses have produced results lately, investors should tread carefully as not all companies are equipped for the next technological innovation. Taking that into account, here are two semiconductor stocks we think can generate sustainable market-beating returns and one best left ignored. Market Cap: $1.03 billion Based in the US, Penguin Solutions (NASDAQ:PENG) is a diversified semiconductor company offering memory, digital, and LED products. Why Do We Think PENG Will Underperform? Muted 4% annual revenue growth over the last five years shows its demand lagged behind its semiconductor peers Gross margin of 29.1% reflects its high production costs Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.2% for the last two years Pengu Show less Read more
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