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Stock Analyst Update

Vitesse Semiconductor Doesn't Deserve a Beating

Quarterly results were strong, and valuation is getting compelling.

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With its shares dipping more than 20% Tuesday morning, Vitesse Semiconductor (VTSS) might be one of the more reasonably priced ways to play the rapid growth in the communications sector.

Vitesse Semiconductor's fiscal second-quarter earnings results were strong, even though they only exceeded consensus estimates by a penny. The company delivered robust sales growth yet again, with revenue increasing 12% over the December quarter. These results weren't favorable enough for Vitesse's shares to hold on to the 30% gains they saw Monday, however. Along with many tech names in the Nasdaq, the stock now stands down almost 50% from just a few weeks ago.

Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.