Should You Invest In Tower Semiconductor Ltd. ($TSEM) Or CEVA, Inc. ($CEVA)?

2019-08-20 | Welcome! Today we compared how two different stocks in the Semiconductors industry are trading: Tower Semiconductor Ltd. and CEVA, Inc.. While these two companies may have very different market capitalizations and balance sheets, they are worth comparing given how they are in the same sector. Below you’ll see how the different technical indicators differ between these two stocks, and we’ll also show what Trading View thinks of them based on the technical analysis. But before we get ahead of ourselves, please note that this is technical analysis only (ie. analyzing how these companies are trading, not digging into the company fundamentals), and therefore you should not rely only on this to guide you on whether you should buy or sell anything – take it with a grain of salt only, and pay attention to the disclaimer below. With that said, many traders find value in technical analysis and others even swear by it, so if that is you, I hope my analysis will be of use to you. Let’s get to it…

First things first: during its last day of trading, Tower Semiconductor Ltd. opened at 19.35, got to a maximum price of 19.54 and dropped to as low as 19.2 before finishing the session at 19.51. In total there were 280200 shares traded, which is enough to conduct our analysis. Compare that now to CEVA, Inc., which opened at 32.07, had a high of 32.4, a low of 32.01, closed at 32.14 and had a total volume of 107100.

VOLUME ANALYSIS: Generally, the higher the volume indicators are, the better – you need liquidity to trade, after all. All of the volume indicators are as follows… (click here for an explanation on volume)

Volume Indicator Tower Semiconductor Ltd. CEVA, Inc.
Accumulation-distribution index 69.39526 75.68727
on-balance volume -19.08 -31.86
chaikin money flow

2.57895 1.36364
force index

0.4428 1.4
ease of movement rating

0.00547 0.0183
volume-price trend

2.64107 8.8362
negative volume index

1000.0 1000.0

VOLATILITY ANALYSIS: Now to compare the volatility between these two companies… (click here for an explanation on volatility)

Volatility Indicator Tower Semiconductor Ltd. CEVA, Inc.
Average true range 0.29182 0.50773
Bolinger bands 19.48341 32.79622
Upper bollinger band 18.60659 30.36378
Lower bollinger band

19.2 32.01
Bollinger high band indicator

1.0 1.0
Bollinger high low indicator

1.0 1.0
Central keltner channel

19.36333 32.16
High band keltner channel

19.17333 31.83
Low band keltner channel

19.55333 32.49
High band keltner channel indicator

1.0 1.0
Low band keltner channel indicator

1.0 1.0
Donchain channel high band

19.2 32.01
Donchain channel low band

19.2 32.01
Donchain channel high band indicator

1.0 1.0
Donchain channel low band indicator

1.0 1.0

TREND ANALYSIS: Now for the most interesting and detailed part, the trend. Where is the stock actually going? Let’s compare the indicators… (click here for an explanation on trend)

Trend Indicator Tower Semiconductor Ltd. CEVA, Inc.
Moving Average Convergence Divergence (MACD) trend_macd -0.01929
MACD signal -0.00386 -0.01072
MACD difference -0.00309 -0.00858
fast Exponential Moving Average (EMA) indicator

19.2 32.01
slow Exponential Moving Average (EMA) indicator

19.2 32.01
Average Directional Movement Index (ADX)

unknown unknown
ADX positive

20.0 20.0
ADX negative

20.0 20.0
positive Vortex Indicator (VI)

1.0 1.0
negative VI

1.0 1.0
trend vortex difference

0.17471 0.33728
trix

11.28791 22.41341
Mass Index (MI)

1.0 1.0
Commodity Channel Index (CCI)

-66.66667 -66.66667
Detrended Price Oscillator (DPO)

-2.28733 -6.87314
KST Oscillator (KST)

135.24371 273.42864
KST Oscillator (KST Signal)

135.24371 273.42864
KST difference

-4.58236 -8.55318
Ichimoku rating

19.445 32.235
Ichimoku B rating

19.445 32.235
Ichimoku visual trend A

17.4415 26.18592
Ichimoku visual trend B

17.82845 27.23563
Aroon Indicator (AI)

4.0 4.0
AI indicator down

4.0 4.0
AI difference

-4.0 -4.0

MOMENTUM ANALYSIS: What about momentum? Let’s dive into it… (click here for an explanation on momentum)

Momentum Indicator Tower Semiconductor Ltd. CEVA, Inc.
Relative Strength Index (RSI) 50.0 50.0
Money Flow Index (MFI) 100.0 100.0
True Strength Index (TSI) 100.0 100.0
ultimate oscillator

93.84573 99.13459
stochastic oscillator

178.94737 118.18182
stochastic oscillator signal

178.94737 118.18182
Williams %R rating

78.94737 18.18182
awesome oscillator

-0.039 -0.12008

RETURNS: That’s all for technical analysis. Now let’s just list the returns for Tower Semiconductor Ltd. and CEVA, Inc..

Daily return 13.52437 27.34286
Daily log return -1.62776 -2.72341
Cumulative return -1.61458 -2.68666

So there you have it: our deep, grueling analysis comparing Tower Semiconductor Ltd. and CEVA, Inc. together. But what does all of the above mean? Various technical indicators above are positive, while others are negative, and if we want to decide overall if the technical analysis indicates a bullish or bearish chart, we have to consider all of them together. That’s what the Trading View widget below can do, so let’s see what it says considering all these indicators. First, here’s Tower Semiconductor Ltd.:

The verdict above will consider all these technical indicators and consider which are strong and weak, and then put them all together to come up with a conclusion stating whether TSEM is strong or weak. Again – this is not a reliable indication of whether Tower Semiconductor Ltd. is a good investment! None of these indicators consider the company fundamentals. All of this data is based on how it trades only. Now with that out of the way, let’s compare it with CEVA, Inc.

So there you have it. We hope you have found this analysis useful, and if you see any errors or have any feedback, please comment below.

How can you profit off trading these 2 companies and other stocks like it? First, check out the Beat The Market Analyzer software – this is worth its weight in gold. Some other great services for earning income from trading and investing are Dividend Stocks (an outstanding resource for anyone interested in high dividend paying stocks), Microcap Millionaires (the best site online for profiting off micro-cap stocks) and Trading Code (an extremely powerful system for profiting off trading).

DISCLAIMER: We are not registered investment advisers and the above analysis should be taken at face value only. We strongly advise against buying or selling anything based solely on our analysis above, and are not responsible for any losses that you may incur if you choose make any investment decisions based on the above.

Gary Ivenchuck

Gary is a stock trading expert and is responsible for covering technical analysis news on Logistics Business Review. Recently he has been working tirelessly to analyse stocks for our readers, and is always available to hear from people asking for stock analysis.

gary@logistics-business-review.com
Gary Ivenchuck

Leave a Reply

Your email address will not be published. Required fields are marked *