Time to Buy the Dip on This Crucial Tech Company

Across the megatrends of 5G, cloud computing, autonomous vehicles, and others, the common denominator is the requirement for components made of advanced engineered materials. That should benefit the likes if II-VI (NASDAQ: IIVI), a specialist in optical components, transceivers, and engineered materials for laser-based applications.

Though components and materials producers tend to be more commoditized than, say, a proprietary semiconductor designer, these components and engineered materials have years of solid growth ahead. Furthermore, the industry is consolidating, with II-VI being a leader on that front, currently waiting for final approval of its acquisition of Coherent (NASDAQ: COHR).

Already down some 30% from all-time highs, II-VI fell another 4% after reporting earnings on Tuesday, Aug. 10. It was a strange reaction to a big beat on revenue and earnings per share. Furthermore, II-VI has proven itself to be a great operator over several decades, so given its discount, value investors may wish to give this beaten-down stock a look.

Source Fool.com