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Stocks Fueling the Internet of Things

Stocks Fueling the Internet of Things

6.72k followers7 symbols Watchlist by The Motley Fool

The next wave of the Internet is already underway – here are seven companies poised to power this digital revolution.

7 symbols

  • Did Hedge Funds Make The Right Call On Skyworks Solutions Inc (SWKS) ?
    Insider Monkey

    Did Hedge Funds Make The Right Call On Skyworks Solutions Inc (SWKS) ?

    We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

  • Barrons.com

    A Giant Bank Bought Up Apple, AT&T and Gilead Stock. Here’s What It Sold.

    Norway’s biggest bank, DnB, increased investments in Apple, AT&T, and Gilead stock in the second quarter. It also cut its position in networking firm Cisco Systems.

  • Analysts Press the ‘Buy’ Button on These 3 Stocks
    TipRanks

    Analysts Press the ‘Buy’ Button on These 3 Stocks

    The case incidence of coronavirus is rising, raising fears that the initial economic reopenings were too much, too soon, and too fast. Adding to the nervous outlook, the White House has let it be known that it will seek a cap on future economic stimulus packages at $1 trillion. Considering that the last round of stimulus was upwards of $3 trillion, seeking to cap it at one-third that amount – at least party in the name of deficit control – sounds like a case of closing the barn door after the horses have bolted. It’s one more signal in a growing round of confusion.At least some signals, however, are coming through loud and clear. Another signal is coming through from Wall Street’s analysts: There are still plenty of stocks to buy, with strong prospects to survive the corona crisis – and to do it with plenty of upside share potential. We’ve used the TipRanks database to pull the details on three of these lesser-known, buy-rated stocks. Let’s find out what the analysts have to say about them.Azek Company, Inc. (AZEK)We’ll start with a company in the construction industry. Azek inhabits a niche that is going to do well as ‘social distancing’ becomes the norm. The company makes decking, patio, and outdoor products. With summer here, and indoor gatherings highly proscribed, the company took a calculated risk.Azek went public in mid-June. The IPO was a big one, raising over $765 million despite the pandemic, and shares have gained in the weeks since. AZEK is up 15% since starting on the NYSE exchange. While the stock is impressive, there are some cautionary signs. Azek is highly leveraged, with over $1.2 billion in debt, nearly 25% of the company’s $4.5 billion total market cap. It’s clear that Azek is betting heavy on several factors: the V-shaped recovery, people’s desire to get together – safely, and that backyard recreational activities will be a winner this year.Is that a good bet? Analyst Alex Rygiel of B. Riley FBR clearly thinks so. The analyst writes of Azek, “…we believe AZEK could experience industry-leading margin expansion over the next three years. We also believe the recent COVID-19 environment with stay-at-home and social distancing orders could create a tailwind for AZEK and the overall decking industry as more homeowners looks to expand their livable space outdoors and with the possible suburbanization of the population.”Against this backdrop, Rygiel initiated coverage on AZEK shares with a Buy rating and a $38 price target, which implies room for 22% upside growth this year. (To watch Rygiel’s track record, click here)Overall, AZEK gets a Moderate Buy from the Wall Street analyst consensus. The stock has received 15 reviews in recent weeks, breaking down 10 to 5 in Buys versus Holds. Shares are currently trading for $31.1, and the average price target of $35.50 suggests a 14% one-year upside potential. (See Azek stock analysis on TipRanks)Ambarella (AMBA)Now we move to the tech industry, where Ambarella is a small-cap design company in the semiconductor chip sector’s fabless segment. That’s a fancy way of saying that the company designs its chips, makes the prototypes, and farms out the mass production. Ambarella focuses on video compression, computer vision processors, and video compression – all important uses as companies and workers move heavily toward telecommuting. Ambarella’s chips also have applications in the video security monitoring and autonomous vehicle niches.Ambarella saw sluggish earnings in 1H20, as the COVID-19 pandemic impacted supply chains, manufacturing facilities, and sales. That said, the company has found some tailwinds. Video AI and computer vision are growing segments, and the company has a solid position in both. While earnings were down, revenues in Q1 beat the forecast, coming in at $54.6 million. Ambarella also has plenty of liquidity to combat the pandemic’s economic impact; the company finished Q1 with $411 million in cash on hand, up from $405 million at the end of 2019, and the free cash flow generated a healthy $7.6 million.It’s the sector outlook, however, that attracted attention form Needham’s Quinn Bolton. The 5-star analyst, rated 8 overall in TipRanks’ database, likes what he sees in Ambarella, and upgraded his stance to Buy based on the strength of the Computer Vision segment. “…we believe CV design activity remains robust. Professional security camera design wins represent the first wave of the CV production ramp and should drive CV revenue to ~10% of revenue in FY21 (CY20). The second CV wave, driven by the consumer security camera market, is expected to start in CY21 while the third CV wave, driven by Auto applications, is expected in CY22 and beyond,” Bolton commented. Bolton backs his new Buy rating with $55 price target, indicating a 14% upside potential in the next 12 months. (To watch Bolton’s track record, click here)Overall, the analyst consensus on AMBA is a Moderate Buy, based on a mix of reviews: 5 Buys, 4 Holds, and a single Sell. The shares have an average price target of $57.78, which implies a healthy 20% upside from the current trading price of $48.21. (See Ambarella stock analysis on TipRanks)Arthur J. Gallagher & Company (AJG)Last on our list is an $18 billion global insurance broker and risk management firm, Arthur J. Gallagher. The company, based in the Chicago area, has a worldwide presence and is notable for being selected nine years running as one of the world’s most ethical companies.As an insurance company, with a reputation for ethical behavior, Gallagher was particularly well-positioned to gain during the coronavirus pandemic scare. The company saw Q1 earnings of $1.83 per share, well above the $1.74 expectation, and also up 215% sequentially. Deutsche Bank’s Phil Stefano sees AJG in position to continue growing, and upgrades his rating on the stock to a Buy. Supporting this, he writes, “We believe our margin expectation for Brokerage drives our Street high EPS estimates for the remainder of 2020 and 2021, with investors not fully appreciating the magnitude of the expense benefit impact to margins.”Stefano’s price target backs up his Buy rating; at $120, it implies a 21% upside potential for the stock. (To watch Stefano’s track record, click here)All in all, AJG has eight recent stock reviews, including 6 Buys and 2 Holds, giving the stock a consensus rating of Strong Buy. The stock is selling for $99.14, and the average price target of $108.38 indicates a possible 9% upside this year. (See AJG stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

  • Barrons.com

    Nokia Stands to Gain From 5G Spending. And Its Stock Is Cheap.

    The struggling telecommunications maker stands to benefit as wireless operators upgrade their networks. Resistance to rival Huawei also helps.

  • 3 5G Stocks to Buy Right Now
    Motley Fool

    3 5G Stocks to Buy Right Now

    There is a great deal of excitement surrounding 5G, and rightly so. Mobile network providers are rolling out the first iterations of the new service, and the number of smartphones offering connectivity is ramping up. Meanwhile, it's the back-end construction of the 5G network itself -- rather than the consumer-facing service -- that holds some of the most promising investments in the new mobility movement.

  • Reuters

    US STOCKS-Dow, S&P 500 fall on fears over surging virus cases

    The S&P 500 and Dow dropped on Thursday as investors worried about another round of business shutdowns to contain a surge in coronavirus cases and they began to shift their focus to earnings. Walgreens Boots Alliance Inc tumbled 8.2% after it reported a quarterly loss compared with a profit a year earlier, hurt by non-cash impairment charges of $2 billion as COVID-19 disrupted business at its Boots UK division. S&P 500 companies are expected to post the biggest quarterly decline in earnings since the financial crisis, based on IBES data from Refinitiv.

  • Barrons.com

    Huawei Faces Increased Scrutiny. Apple, Cisco, and Other Tech Stocks Could Benefit.

    The world’s largest provider of telecommunications infrastructure, Huawei Technologies, has come under increased global scrutiny from concerns that the company’s relationship with China’s government makes relying on its products a security risk. In routing, Huawei is the market leader with 34% of the market, just ahead of Cisco.

  • Barrons.com

    Cisco Stock Looks Historically Cheap. Buy It Now, Analyst Says.

    Amid a sea of high-price technology stocks, Cisco Systems shares look like a bargain, says Morgan Stanley’s Meta Marshall. She raised her rating on the shares to Overweight and raised her price target to $54.

  • US STOCKS-Dow, S&P 500 slip on fears over surging virus cases
    Reuters

    US STOCKS-Dow, S&P 500 slip on fears over surging virus cases

    The S&P 500 and Dow dropped on Thursday as fears of another round of business shutdowns to contain a surge in coronavirus cases overshadowed data pointing to a declining trend in weekly jobless claims. The United States saw more than 60,000 new COVID-19 infections on Wednesday, setting a single-day global record while Florida and Texas reported a record one-day increase in deaths.

  • Reuters

    US STOCKS-Wall St slips as surging virus cases undermine recovery hopes

    The Labor Department's most timely data on the economy showed 1.31 million Americans filed for state unemployment benefits in the latest week, down from 1.43 million in the previous week. Declining issues outnumbered advancers for a 4.59-to-1 ratio on the NYSE and a 4.07-to-1 ratio on the Nasdaq.

  • MarketWatch

    Cisco's stock rises after Morgan Stanley turns bullish, citing durable earnings growth and valuation

    Shares of Cisco Systems Inc. rallied 1.1% in midday trading Thursday, to buck the broad-market selloff, after Morgan Stanley analyst Meta Marshall turned bullish on the networking giant, citing attractive valuation, durable earnings growth and potential tailwinds. The stock was the best performer of the two of 30 Dow Jones Industrial Average components that were gaining ground, as the Dow tumbled 494 points, or 1.9%. Marshall raised the rating to overweight, after being at equal weight since February 2019, and boosted his price target on the stock to $54 from $46. Marshall said Cisco's valuation multiple is at the greatest discount to the S&P 500 in the past 10 years. He believes the "valuation gap" will normalize as Cisco's earnings prove more resilient than investor expectations, driven by strength in public sector and service provider revenue, and as business spending improves as networking and security needs grow. "We are mindful of secular headwinds and broad macro exposure, but think growing networking/security needs, cash flow flexibility and [operating expenditure] discipline provide tailwinds, helping multiple gap close over [the next 12 months]," Marshall wrote in a note to clients. The stock has lost 3.5% year to date, while the Dow has dropped 10.4% and the S&P 500 has eased 3.4%.

  • Reuters

    US STOCKS-Wall St slips as surging virus cases dent recovery hopes

    U.S. stock indexes fell in choppy trading on Thursday as fears of another lockdown to contain a surge in coronavirus cases overshadowed data pointing to a declining trend in weekly jobless claims. The Labor Department's most timely data on the economy showed 1.31 million Americans filed for state unemployment benefits in the latest week, down from 1.43 million in the previous week.

  • Is Under Armour Selling its Once Highly Popular MyFitnessPal App?
    Motley Fool

    Is Under Armour Selling its Once Highly Popular MyFitnessPal App?

    Connected fitness is undoubtedly where the world is headed, but will Under Armour be coming along, too?

  • Reuters

    US STOCKS-Futures tick higher as investors hold out for recovery

    U.S. stock index futures edged higher on Thursday after data pointed to a declining trend in weekly jobless claims, with investors also weighing the risk of another business shutdown as U.S. COVID-19 cases soared. The Labor Department's most timely data on the economy showed 1.31 million Americans filed for state unemployment benefits in the latest week, down from 1.43 million claims in the prior week.

  • Add 4 Stocks to Watchlist as Enterprise Communication Peps Up
    Zacks

    Add 4 Stocks to Watchlist as Enterprise Communication Peps Up

    Here we discuss four companies stirring up competition in enterprise communication space, with recent efforts to enhance their video conferencing platforms amid work-from-home push.

  • Skyworks Sets Date for Third Quarter Fiscal 2020 Earnings Release and Conference Call
    Business Wire

    Skyworks Sets Date for Third Quarter Fiscal 2020 Earnings Release and Conference Call

    Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of high-performance analog semiconductors connecting people, places and things, will conduct a conference call with analysts to discuss its third quarter fiscal 2020 results and business outlook on July 23, 2020, at 4:30 p.m. EDT.

  • Reuters

    US STOCKS-S&P, Dow futures dip ahead of jobless claims report

    Futures tracking the S&P 500 and Dow indexes edged lower on Thursday ahead of the closely watched weekly jobless claims report, with investors weighing the risk of another business shutdown amid soaring U.S. COVID-19 cases. The benchmark S&P 500 has risen more than 40% from its March lows and is now about 7% below its February record high. The Labor Department's most timely data on the economy is expected to show 1.38 million Americans filed for state unemployment benefits in the latest week, down from 1.43 million claims in the prior week.

  • Do Hedge Funds Love CalAmp Corp. (CAMP)?
    Insider Monkey

    Do Hedge Funds Love CalAmp Corp. (CAMP)?

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Were Hedge Funds Right About Souring On Cisco Systems, Inc. (CSCO)?
    Insider Monkey

    Were Hedge Funds Right About Souring On Cisco Systems, Inc. (CSCO)?

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Where Will Adidas Be in 5 Years?
    Motley Fool

    Where Will Adidas Be in 5 Years?

    The athletic footwear and apparel maker’s five-year turnaround plan paid off -- but can it maintain that momentum over the next five years?

  • MarketWatch

    Dow's 50-point climb led by gains for shares of Apple Inc., Nike

    DOW UPDATE Shares of Apple Inc. and Nike are posting strong returns Wednesday morning, sending the Dow Jones Industrial Average into positive territory. The Dow (DJIA) was most recently trading 55 points (0.

  • CalAmp Appoints Jeff Gardner as President and CEO
    PR Newswire

    CalAmp Appoints Jeff Gardner as President and CEO

    CalAmp (Nasdaq: CAMP), a global technology solutions pioneer transforming the mobile connected economy, today announced that the company has appointed Jeff Gardner as its president and CEO. Mr. Gardner has served as interim president and CEO since March 25, 2020.

  • Barrons.com

    Three iPhone Suppliers That Will Benefit From the New Design

    The launch will be delayed by a month, but Skyworks, Broadcom and Qualcomm are all likely to see increased sales once it happens.

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