169% Gains Meets a 410X P/E Ratio: Is There Any Upside Left for Lattice Semiconductor Stock?

• Lattice Semiconductor (LSCC) exhibits strong momentum and is trading at new all-time highs.
• The stock is up 169% over the past year.
• LSCC maintains a 100% “Buy” technical rating from Barchart.
• Valuation is stretched at a price-earnings ratio of 410x, although analyst sentiment remains mostly positive.

Today’s Featured Stock

Valued at $14.84 billion, Lattice Semiconductor (LSCC) designs, develops, and markets high performance programmable logic devices and related development system software. 

Programmable logic devices are standard semiconductor components that can be configured by the end customer as specific logic functions, enabling shorter design cycle times and reduced development costs.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. LSCC checks those boxes. The Trend Seeker issued a new “Buy” signal on April 8. Since then, the stock has gained 4.99%.

Barchart Technical Indicators for Lattice Semiconductor

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Lattice Semiconductor scored an all-time high of $112.27 on April 16.

• Lattice Semi has a Weighted Alpha of +163.67.
• LSCC has a 100% “Buy” opinion from Barchart.
• The stock has gained 169.01% over the past 52 weeks.
• Lattice Semi has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $111.88 with a 50-day moving average of $95.47.
• LSCC has made 10 new highs and gained 24.42% over the past month.
• Relative Strength Index (RSI) is at 65.88.
• There’s a technical support level around $109.13.

Don’t Forget the Fundamentals

• $14.84 billion market capitalization.
• 410.41x price-earnings ratio.
• Analysts project an increase in revenue of 33.47% this year and another 17.22% next year.
• Earnings are estimated to increase 49.80% this year and an additional 28.22% next year.

Analyst and Investor Sentiment on Lattice Semiconductor

• The Wall Street analysts followed by Barchart give the stock 9 “Strong Buy,” 3 “Moderate Buy,” 2 “Hold” and 1 “Sell” opinion with price targets between $85 and $135.
• Value Line rates the stock “Above Average” with3-5-year price targets between $90 and $135.
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is 24% overvalued with a fair value of $87.32.
• 13,150 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is 4.17% of the float with 3.40 days to cover the float.

The Bottom Line on Lattice Semiconductor

The stock seems to be firing on 4 out of 5 cylinders. Growth, profits, momentum, and analyst revisions all seem great, but that valuation is pretty rich. However, Wall Street and analysts seem happy.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.