The Trend Catcher | Optical Comms Surge, With COHR +15%, GLW +10%; Equipment & Contract Mfg Heat Up; 6 Stocks Including FCX Near Breakout
LG Display Co., Ltd Sponsored ADR LPL | 0.00 | |
S&P 500 index SPX | 0.00 | |
Corning Inc GLW | 0.00 | |
KYOCERA CORP KYOCY | 0.00 | |
Ouster, Inc. OUST | 0.00 |
LG Display Co., Ltd Sponsored ADR(LPL.US) Subscribe to "The Trend Catcher Topic," tracking hottest sectors & technical breakouts in real time daily, accompanying you every US stock trading day.
The S&P 500 index(SPX.US) was relatively unchanged on Tuesday, with traders digesting a move to fresh all-time highs while monitoring the latest U.S.-Iran developments as well as moves in major tech names.
The broad-based index lost 0.1%, while the Dow Jones Industrial Average lost 125 points, or 0.2%. The latter rose to a new all-time intraday high earlier in the session. The Nasdaq Composite hovered around the flatline.
1. Leader industry as of 5:18 pm
| Name | Price % Chg | Ind Group Rank | Ind Grp Rnk Last Week | Ind Grp Rnk 3 Mo Ago | Number of Stocks | % Chg YTD | Ind Mkt Val (bil) |
| Elec-Misc Products | 5.19 | 23 | 8 | 10 | 29 | 50.5 | 235.4 |
| Telecom - Equipment | 4.77 | 10 | 6 | 1 | 19 | 139.4 | 211.4 |
| Elec-Contract Mfg | 4.63 | 3 | 2 | 50 | 15 | 78.9 | 211.7 |
| Oil&Gas-Explorers/Producers | 3.82 | 62 | 52 | 19 | 72 | 24.6 | 762.1 |
| Elec-Semicondctor Fablss | 3.11 | 11 | 18 | 104 | 45 | 36.7 | 9,625.9 |
Elec-Misc Products: Corning Inc(GLW.US) , KYOCERA CORP(KYOCY.US) , Ouster, Inc.(OUST.US) , Richardson Electronics, Ltd.(RELL.US) , LG Display Co., Ltd Sponsored ADR(LPL.US) , Coherent Corp.(COHR.US) , Tower Semiconductor Ltd(TSEM.US)
Sector Logic: Elec-Contract Mfg
- Core Logic: The AI capex super-cycle is driving global Wafer Fab Equipment (WFE) and Electronic Manufacturing Services (EMS) demand into structural growth. The AI infrastructure buildout is shifting from "buying chips" to "buying systems," with the ODM value-add for racks increasing significantly (Morgan Stanley notes a 35-40% increase for Rubin racks). The supply chain shift from globalization to regionalization/localization creates incremental demand for US-based manufacturing capacity. Increasing chip design complexity and surging AI inference demand are driving capacity expansion in advanced packaging (CoWoS) and foundry.
- Market Space: Goldman Sachs forecasts global WFE at $141B (2026), $186B (2027), and $208B (2028). Morgan Stanley projects global WFE revenue of $145B in 2026 and $185B in 2027. CoWoS capacity is expected to reach 1.3M wafers in 2026 and 2.0M in 2027. The ODM sector is valued attractively at ~13x CY27 P/E.
- Market Dynamics:
- Morgan Stanley raised WFE forecasts again, seeing the 2027 pecking order as NAND > Non-TSMC Foundry > TSMC > DRAM. It upgraded LRCX to Overweight and downgraded AMAT to Equal-weight.
- Citi recommends overweight on compute semis, citing cloud capex beating expectations. Analog semis are in a clear cyclical recovery (UBS view).
- The foundry market is diverging: NVIDIA diversifying supply chains (Samsung may get 2nm orders), Intel winning Apple's chip foundry orders, and GlobalFoundries (GFS) challenging TSMC in co-packaged optics with open standards.
- Stock Views (US):
- GlobalFoundries Inc.(GFS.US) : Morgan Stanley reports a slight beat, focus shifts to upcoming Investor Day. The company is transitioning to high-growth data center, automotive, and IoT segments, targeting ~40% gross margin by 2028.
- Celestica Inc.(CLS.US) : Driven by accelerating AI/ML demand, it raised FY2026 revenue guidance from $17B to $19B (+53% YoY) and adjusted EPS from $8.75 to $10.15 (+68% YoY).
- Flex Ltd(FLEX.US) : Mizuho sees potential to double, benefiting from growing AI hardware manufacturing demand.
- ON Semiconductor Corporation(ON.US) : BofA names it a top AI power semi pick, estimating AI-related revenue could grow >6x on SiC/GaN adoption and solid-state transformer infrastructure. Raised PT.
- Lam Research Corporation(LRCX.US) : Morgan Stanley upgraded to Overweight, citing an upcoming NAND capex wave in 2027 extending the WFE cycle. Goldman Sachs lists it as a new hedge fund favorite.
2. Breaking Out Today as of 5:18 pm
| Symbol | Comp Rating | Industry Name | Volume (1000s) | EPS Rating | RS Rating | Ind Group RS | SMR Rating | A/D Rating | Market Cap (mil) |
| - | - | - | - | - | - | - | - | - | - |
3. Near Breakouts as of 5:18 pm
| Symbol | Comp Rating | Industry Name | Current Price | Price % Chg | Volume (1000s) | Price $ Chg | EPS Rating | RS Rating | Ind Group RS | SMR Rating | A/D Rating | Market Cap (mil) |
| Freeport-McMoRan, Inc.(FCX.US) | 95 | Mining-Metal Ores | 69.54 | 3.73 | 2,607 | 2.5 | 79 | 76 | A | B | B | 96,374 |
| Unity Bancorp, Inc.(UNTY.US) | 92 | Banks-Regional | 55 | 0.75 | 14 | 0.41 | 89 | 62 | B- | A | B- | 548.1 |
| Citigroup Inc.(C.US) | 86 | Banks-Money Center | 129.63 | 0.42 | 1,926 | 0.54 | 76 | 80 | B | C | D | 221,377.4 |
| UBS Group AG(UBS.US) | 94 | Banks-Money Center | 48.08 | 0.18 | 383 | 0.09 | 87 | 79 | B | B | B | 144,424.9 |
| Hilton Worldwide Holdings Inc.(HLT.US) | 89 | Leisure-Lodging | 332.25 | -0.12 | 117 | -0.4 | 72 | 71 | A- | C | B | 75,727.2 |
| Northern Trust Corporation(NTRS.US) | 94 | Banks-Super Regional | 167.68 | -0.39 | 77 | -0.66 | 86 | 81 | C | B | A- | 31,150.9 |
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Company Fundamentals
| Metric | Value |
|---|---|
| EPS Due Date | 8/4/2026 |
| EPS % Chg (Last Qtr) | 30% |
| 3 Year EPS Growth Rate | 14% |
| EPS Est % Chg (Current Yr) | 26% |
| Annual ROE | 16% |
| Sales % Chg (Last Qtr) | 18% |
| 3-Year Sales Growth Rate | 7% |
| Debt % | 126% |
| Market Cap | $152 Bil |
| Annual Pre-Tax Margin | 12.77% |
| Sector | Electrncs |
| Industry Group | Elec-Misc Products |
| Industry Group Rank | 23 |
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