Quant Picks: 3 Semiconductor Equipment Companies to Buy

Here are some of the best semiconductor equipment companies TheStreet Quant Ratings says you should consider looking at.

The wave of mergers and acquisitions in the semiconductor industry means that the surviving firms will be bigger with lower costs and streamlined research and development expenditures. It also means that the surviving firms will be able to improve their profit margins at the expense of their suppliers and clients due to a better bargaining position after the mergers. That being said, this could put the suppliers of equipment to the semiconductor industry under pressure. Fewer, larger customers could put pressure on profits. Here are some of the best semiconductor equipment companies TheStreet Quant Ratings says you should consider looking at. Number 3 is Advanced Energy Industries. With an 'A-' rating, the company's strengths can be seen in its revenue growth and solid stock price performance. 2nd is, Teradyne. This rating is also an 'A-.' Teradyne thrives in its increase in net income and expanding profit margins. Number 1 is Lam Research Corporation. With an 'A' rating the company flourishes in its revenue growth and solid stock price performance. TheStreet Ratings are algorithmic stock picks based on 32 major data points. S&P 500 stocks rated 'buy' yielded a 16.5% return in 2014, beating the S&P 500 Total Return Index by more than 300 basis points. For the full reports on these stocks, you can check out TheStreet.com/QuantRatings.