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Stock Analyst Update

Time to Back Up the Truck on PMC-Sierra?

Chipmaker's shares are beginning to look attractive.


The Nasdaq has spared few technology names over the past week, and one of its casualties, PMC-Sierra (PMCS), is worth a good, long look.

Although the first-quarter earnings that PMC-Sierra reported Thursday evening were only slightly ahead of expectations, the company’s performance was still impressive on a number of fronts. Sales grew more than 100% over the same quarter last year and increased more than 25% from the fourth quarter of 1999. Even better, solid growth for the coming quarter seems to already be in the bag since an unusually large portion of the company's business for the second quarter is already lined up. Yet in spite of extremely strong fundamentals, the company's shares have declined more than 20% since the beginning of trading on Thursday.

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