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Firmer prices, reduced inventories, and improved product demand have allowed electronics industry stocks to rally in the 4th qtr of 1998, and the industry is expected to improve in 1999, as well. Cost cutting, global industry expansion, and inceasing electronic component usage in other products are positive trends for the industry. Investors will find several good selections in this sector, although the industry is only average in timeliness in 1999.

Many electronics industry companies have had good growth and are expected to continue to do so over the long-term period, but some companies, including personal computer manufacturers, may see a drop in new sales as consumer inventories grow. While a few company's stocks have dropped in Timeliness ratings in the last quarters, many other companies boast stocks that will offer above-average appreciation over a 3 to 5 year period.

Increasingly reciprocal trade between the US and the Far East is providing an exciting and rapidly growing market for the US electronics industry. Capital equipment is an area where US manufacturers have an advantage, and as Far Eastern factories become more involved in parts fabrication, they will need state-of-the-art equipment. Several US companies are actively involved in Far East ventures, including Harris Corp, California Microwave and Varian Corp, making them potentially sound investment choices.

The electronics industry's success will greatly depend on changes to the marketplace. Those companies producing products for nonmilitary markets are expected to outperform companies targeting military markets. Additionally, electronics companies that produce telecommunications equipment are believed to constitute the fastest growing segment of the industry. The fastest growing geographic markets are expected to be outside the US, such as in Europe. Other aspects of the industry are covered.

The electronics industry is expected to perform favorably through July 1995. Profits are expected to gain 40% in 1994, and sales are forecast to grow 20% during the same period. Investments in this industry have a high potential for significant gains, but stocks in this industry also have high risks. Companies in this industry include manufacturers of electrical, communications and security equipment. The electronics industry gained about 8.3% over broad market indexes since the last report on the industry.

The electronics industry is relatively volatile because rapidly changing technology creates short product cycles. Potential investors should therefore be cautious in selecting stocks. As a whole, the domestic industry should be boosted by growth in the distribution, communications, and automotive sectors. Operations in Japan and Europe will likely suffer until those economies turn around, as early as 1995.

It is expected that, with a few exceptions, 1994 will be another good year for companies in the electronics industry. Much of their recent fortunes have been dependent on the high demand for personal computers and peripherals, especially telecommunications devices and wireless technology. Investors need to examine individual issues to determine whether the companies in question have adapted to the marketplace by diversifying their product lines.

Earnings forecasts are positive for many companies within the electronics industry due to expectations of continuing demand. Manufacturers of communications, distribution and connector products have had strong earnings that are expected to continue. Investors are advised to be selective in their choice of electronics industry stock issues and pay attention to certain low Price Stability ratings. Earnings for this group are projected to grow 26% annually at least through 1996.

Vishay Intertechnology, Inc. announced that it has entered into a new five-year $450 million credit facility. The senior secured facility, which matures on December 1, 2015, replaces the Company's prior [...]

In the second quarter, electronics companies got a break from the previous rounds of negative revenue growth, but they are now bracing for a slightly weaker third quarter. Expectations for […]

The flood of first-quarter results slowed to a trickle last week, but the sentiment remains positive. Industry executives are guarded in their forecasts, but most expect no further sequential revenue […]

Using a short-cut version of Benjamin Graham's famous value principles, Paul Sturm of Smart Money magazine (1755 Broadway, New York, NY 10019) recently identified eight stocks with market values of [...]

Demand for electronic components has never been as diverse as it is today. Accelerating demand for electronic components from virtually every end market resulted in continued earnings improvements in the […]

If passive-components suppliers had any complaints during the second quarter, they certainly were not about their revenue growth pace, profit margins, or the pricing environment. The major players scored big […]

Interconnect, passives, and electromechanical (IP&E) companies are usually susceptible to the summer doldrums, but this year is shaping up differently. Component shipments are high, bookings even higher, and demand appears […]

This earnings season appears to be shaping up as a powerful one. The elements are in sync and the economic targets are steady at component suppliers, distributors, and contract electronics […]

Connector and passives suppliers are a rather attractive bunch these days. Investors are courting them, analysts like what they see, and customers just can't help coming back, even when regularly […]

Shaking off the effects of the semiconductor downturn, Avnet Inc. posted fiscal fourth-quarter sales of $1.64 billion, up marginally from the $1.6 billion reported in the third quarter. Net income […]