Silicon Laboratories Stock Forum

$Silicon Laboratories (SLAB.US)$ who's in on this?? seem ripe for a short bull run..

Despite Silicon Laboratories' low ROE, its decent earnings growth and high earnings retention are positives. However, the low ROE indicates that reinvestment isn't significantly benefiting investors, and analysts predict future earnings shrinkage.

Robert Johnson's full divestiture from Silicon Laboratories appears bearish, sparking less confidence in its stock. The dearth of insider buying within a year, and the company's 2 warning signs, make us cautious.

Investor caution is evident due to lack of EPS growth, despite the P/E ratio of 52.41 reflecting optimism. The recent sell-off might be a buying chance if long-term growth trend surfaces. Potential investors should also understand associated risks.

Analyst Blayne Curtis from Barclays attributes the weak guidance to 'purely cyclical' factors and still sees strong long-term growth prospects in IoT despite a potentially extended inventory restoration phase and an eventual return to earning $3 or more per share.

SLAB is undervalued now, but negative growth forecast adds risk. Be aware before investing as current undervaluation could pose future challenges.