MACOM Technology Profits Drive Share Increases

The company has 38 product lines that serve over 6,000 customers in three main markets. Its growing earnings over the last five years far outpaced the industry average of 31.2%. Plus, its consensus per-share earnings estimate of $0.65 is an increase of 20.4% from the year prior.

It’s no wonder MTSI shares are up 19% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Up MACOM Technology Shares

Institutional volumes reveal plenty. In the last year, MTSI has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in MTSI shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with MACOM Technology.

MACOM Technology Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MTSI has strong sales and earnings growth over the years:

• 3-year sales growth rate (+7.3%)
• 3-year earnings growth rate (+478.4%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +28.5%.

Now it makes sense why the stock has been powering to new heights. MTSI has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

MACOM Technology has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times since 2012, with more potentially on the horizon. The blue bars below show when MTSI was a top pick…sending shares upward:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

MACOM Technology Price Prediction

The MTSI rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in MTSI at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.