Can Power Integrations power your portfolio higher?

FBN's Charles Payne, A&G Capital CIO Hilary Kramer, NewOak Capital President James Frischling, Stifel Nicolaus Portfolio Manager Chad Morganlander and Penn Financial Group founder Matt McCall on the outlook for Power Integrations.

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This Stock Looks Poised for Breakout

By Payne's Picks FOXBusiness

Let’s talk about Power Integrations (POWI).

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The company does a lot in the power conversions space. Now, you look at its chart and you can see I'm trying to jump the gun a little bit. I think it's going to break out.

They do power integration, mobile TV, smart meters, LED drivers, also some electronic switching. Third quarter revenue was flat year-over-year, but the margins went up pretty nicely (over 100 basis points).

Consumer now 36% of revenue, from 34%. I like that the revenue is really growing. Here's a smart company, too, with 23 patents in the last quarter (and 668 total).

The company is poised to grow 30% a year, every year for the next five years. Peg ratio is 0.74. It's bouncing off $50 in the chart. If we can hold there, I think on the upside, you got room to $60.

Long term, give me a year, I think this could be a $68 stock. I played it a lot in the past, I think it's oversold.

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DISCLOSURES

Power Integrations (POWI)

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N N N
MATT N N N N
HITHA N N N N
JIM N N N N
HILARY N N N N
CHAD N N N N

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