Himax Technologies (HIMX) is Setting Up for a Big Move

Himax Technologies Inc (HIMX) is a semiconductor solution provider dedicated to display imaging processing technologies. It offers display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, virtual reality (VR) devices, and many other consumer electronics devices…

Himax Technologies Inc (HIMX)is benefiting from long-term demand for displays in smartphones, smartwatches, and other devices. HIMX is a major supplier of the chips needed for screens and touch displays. This demand has led to year over year rises in both earnings and sales in the most recent quarter.

HIMX has a current ratio of 2.1, which indicates the company has more than enough liquidity to handle short-term obligations. Management is also efficient with a return on equity of 20.2%. Analysts forecast 81.4% year over year revenue growth and 4,500% year over year earnings growth in the current quarter.

Even with all that growth, the stock is still highly undervalued with a forward P/E of 7.48. The stock has certainly shown bullish momentum over the past year with a 310.6% return, though performance has been mixed since March as seen in the chart below.

Take a look at the 1-year chart of HIMX below with added notations…

See chart and continue reading at STOCKNEWS.com