We scoured the nation to identify the best stock in every state. Microchip Technology (symbol MCHP) is the publicly traded company we picked in Arizona. The company headquarters is located in Chandler.
A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.
Microchip Technology’s business is a niche within a niche. Within the world of semiconductors, Microchip manufacturers microcontrollers (or MCUs, for microcontroller units)—chips that act as “brains” in electronic devices.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Microchip Technology by the Numbers
- Headquarters: Chandler
- Share price: $80.07
- Market value: $18.4 billion
- Price-earnings ratio: 16
(Prices and data are as of June 22, 2017)
Microchip’s specialty is 8-bit MCUs that work in simple devices, such as electric razors, but the company also has smaller shares in more-complex 16- and 32-bit MCUs, which you might find in implanted medical devices. In recent years, as demand for semiconductors has increased, the company has expanded its market share across all three MCU markets through acquisitions—most recently buying chipmaker Atmel for $3.6 billion in 2016. Microchip estimates that the purchase will add $1 to earnings per share starting in the fiscal year that begins in April 2018. The company earned $3.67 a share in the year that ended March 31, according to Zacks Investment Research.
Over the past 12 months, Microchip’s shares rose 57%, compared with a 46% gain for the average semiconductor firm. Yet even after the run-up, Microchip trades at just 16 times estimated earnings for the next 12 months, while its average peer trades at 18 times earnings. Given the strength of Microchip’s business and its growth prospects, CFRA analyst Angelo Zino rates the stock a “buy” and sees it hitting $90 over the next 12 months.
-
Dow Hits New Intraday High on Fed Day: Stock Market TodayNot even the most important stock in the world could keep the oldest equity index down on a significant day for markets.
-
Savings Goal CalculatorTools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have TodayProcter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
