UMC Stock Recent News

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

United Microelectronics Corporation (UMC) Q4 2023 Earnings Call Transcript

UMC's revenue fell this year owing to weak end markets, but both PC and wireless markets are seeing signs of recovery. The company has niche offerings in mature semi processes which have proven resilient while its customer base is diverse and sticky. UMC trades at about 12x P/E which is undemanding for a company that is looking at cyclical improvements as the industry recovers.

After some ups and downs, Verizon's core wireless business is finally stabilizing. UMC's conservative approach to manufacturing chips deserves more attention.

The stock market has been performing well recently, with the S&P 500 rallying up over 4% in the last month. However, with investors always looking to out-beat the market, technology firms, and especially semiconductor companies, provide potential for explosive growth potential.

While innovation typically coincides exclusively with a growth-centric business model, that's not always the case as these tech stocks to buy for growth and passive income demonstrates. With this category, investors can have their cake and eat it too.

Navigating Wall Street's topsy-turvy landscape since 2020 has been a voyage filled with unexpected twists and turns. It's been incredibly challenging, from the depths of the coronavirus market crash to the peaks of a buoyant bull market, followed by another bearish downturn.

Investing in companies that pay dividends while prices are down is one way investors can hedge their portfolios against inflation and other headwinds. While there is always a risk of the dividend being cut, historically, dividend-paying companies have been found to be less erratic in choppy market conditions and continue to provide a better overall return compared to stocks that do not distribute dividends to investors.

In this article, I aim to conduct an intrinsic valuation on UMC's stock to see if the recent dip in sales has affected its long-term upside. UMC's profit is expected to face temporary pressure during the current semiconductor downcycle, with recovery anticipated from 2024. UMC is shifting its strategy towards increasing sales to the automotive market, driven by electrification, autonomous driving, and improved connectivity.

Investors interested in Electronics - Semiconductors stocks are likely familiar with United Microelectronics Corporation (UMC) and Advanced Micro Devices (AMD). But which of these two stocks offers value investors a better bang for their buck right now?