Summary: ON SALE
Score: 15/20
MOS: 99%
Share Price: $46
Sticker Price: $52,130
Is Brooks Automation a good buy?
Semiconductor stocks have been an investment trend for years. A semiconductor is a product usually comprised of silicon, which conducts electricity more than an insulator, such as glass, but less than a pure conductor, such as copper or aluminum. Semiconductors are also known as semis or chips. They can be found in thousands of products such as computers, smartphones, appliances, gaming hardware, and medical equipment. Overall, this is an industry that isn’t going away any time soon.
Some of the top growing semiconductor stocks include Nvidia (NVDA), Advanced Micro Devices (AMD), and NXP Semiconductors (NXPI).
So who helps make semiconductors?
The answer to that is Brooks Automation.
Brooks Automation makes robots and vacuum enclosures that assist in the manufacturing process of semiconductors. A semiconductor needs to be free of dust and contaminants within the air, otherwise the electronics won’t work properly. Brooks Automation solves that problem.
I may have referenced this before but it’s better to invest in products that support a trend as opposed to actually investing in the trend. The gold rush of the 1850’s taught us this. Don’t be a gold miner. Be the business that sells pickaxes, shovels, and jeans to gold miners.
In this example, when Bitcoin and other cryptocurrencies were all the rage in 2017, it was much better to invest in semiconductors because semiconductors power the computers that mine crypto. Well, if you go a level deeper and invest in the company that makes semiconductors, you have yourself a solid business.
Yes, it’s a boring business but with a score of 15/20 it shows the overall financials are very strong. That share price of $46 and a sticker price of $52,130 shows this business has a lot of room to grow.
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