MACOM Technology Solutions Stock Rides A 6-Day Winning Streak To A 26% Gain
MACOM Technology Solutions (MTSI) stock has risen for 6 consecutive trading days, gaining 25.9% over that stretch. That added about $5.5 billion to the company’s market value, which now stands at about $26.8 billion. The stock closed at $350.67 on Tuesday, October 6, 14.4% below its 52-week high of $409.68 and 187.0% above its low of $122.18.
MTSI Versus The S&P 500
Returns for MTSI and the S&P 500 over the streak and the periods around it, all ending Tuesday, October 6 and including dividends:
| Return Period | MTSI | S&P 500 |
|---|---|---|
| 1 Day | 6.8% | 0.6% |
| 6 Days (Current Streak) | 25.9% | 1.8% |
| 1 Month (21 Trading Days) | 30.4% | 1.4% |
| 3 Months (63 Trading Days) | 14.9% | 4.8% |
| Year To Date | 104.7% | 15.2% |
| 1 Year (252 Trading Days) | 175.2% | 17.8% |
How The Streak Compares With The Market
Over the same 6 trading days, the S&P 500 returned +1.8% including dividends, so the run is mostly MACOM Technology Solutions’ own story rather than the market’s. Over the past three months the stock is up 14.9%, a window that includes the streak; over the other 57 sessions of that window it was down 8.7%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 28.4% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 18.1%, versus a median of 21.7%; and the stock trades at 111.1 times trailing earnings against a median of 36.6. The numbers make the run harder to justify: margins below the median and a multiple well above the median. At this price, the stock is asking a lot of the business.
If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.
For anyone who would rather back the theme than one company, a semiconductor ETF like SOXX holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
Streaks End. Discipline Compounds
A run like this is genuinely useful information: something about this business has the market’s full attention. But streaks are where discipline gets tested, because the urge to chase strength is strongest right before it pauses.
The Trefis High Quality (HQ) Portfolio channels that urge into a system: roughly 30 businesses selected for consistent cash generation, strong margins, and resilient balance sheets, sized and rebalanced with rules rather than excitement. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Enjoy the streak; own the process.