Value Tech Stocks Better At Weathering Big Tech Sell Off?

Our indicative Theme of Value Tech Stocks includes a diverse set of technology companies with mature businesses that are trading at reasonable valuations. Investor preference for high-growth stocks has meant that these companies have underperformed, with the theme down by about -18% year-to-date, on an equally weighted basis, compared to the NASDAQ which has gained about 21% over the same period. However, the Value Tech Stocks theme has fared better than the broader market over the big technology-led sell-off over the last few days, declining by just about -4% versus a decline over -8% on the NASDAQ. Below, we provide a quick overview of these companies and their relative performance.

Diodes a manufacturer and supplier of discrete, logic, analog, and mixed-signal semiconductor components, has declined by about 18% this year. The stock fell by about -3% over the last 5 trading days.

Cisco, a networking major that sells networking software, and products such as switches and routers, has seen its stock decline by about -15% year-to-date. The stock declined by about -5% over the last 5 trading days.. (Related: Is The Sell-Off In Cisco Stock Justified?)


Intel, one of the largest producers of CPUs for servers has seen its stock drop by about -17% this year, due to delays with its next-generation 7-nm chips. The stock declined -4% over the last 5 trading days.

Micron Technology, a memory manufacturer that sells DRAM and NAND memory has underperformed, with its stock declining by about -16% this year. The stock declined by -1% over the last 5 trading days.

NetApp sells hardware and software for data management. The stock has declined by about 26% this year and fell by about -5% over the last 5 trading days.

Booking Holdings a major online travel agency has seen its stock decline -8% year-to-date due to the Covid-19 led disruption. The stock is down by about -1% over the last 5 trading days.

What if you’re looking for a more balanced portfolio instead? Here’s a top-quality portfolio to outperform the market, with over 100% return since 2016, versus 55% for the S&P 500, Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk. It has outperformed the broader market year after year, consistently.

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance TeamsProduct, R&D, and Marketing Teams

Source Article