TriQuint Semiconductor (TQNT), Nuverra Environmental Solutions Inc (NES): Wednesday’s Top Upgrades (and Downgrades)

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“Tri” before you buy?

Finally, we’ll end today’s column on a positive note for a company I’ve followed, and admired, for quite a while — but whose stock I’ve consistently panned: TriQuint Semiconductor (NASDAQ:TQNT). TriQuint received an upgrade to buy from the analysts at Charter Equity today, and the stock’s reacting quite positively, dodging the market downdraft, and actually moving up more than 2% in response to the upgrade.

But does it deserve to?

Sadly, I fear it does not. Unprofitable today, paying no dividend, and yet priced at more than 22 times its anticipated forward earnings, TriQuint Semiconductor (NASDAQ:TQNT) costs an awful lot for a stock that few analysts expect to grow earnings at much more than 13% per year going forward. Add to that the fact that the company is still not generating positive free cash flow (it actually burned about $18 million over the past year), and I just don’t see a whole lot of reason to own this stock.

My advice: If Charter says it’s a buy… let them try buying it.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Nuverra Environmental Solutions and TriQuint Semiconductor and has the following options: Long Jan 2014 $4 Calls on Nuverra Environmental Solutions and Short Jan 2014 $3 Puts on Nuverra Environmental Solutions.

The article Wednesday’s Top Upgrades (and Downgrades) originally appeared on Fool.com and is written by Rich Smith.

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