Finding the right stock is the key to successful investing, but it’s never as easy as it sounds. The answer to the question, which stock to buy? is no secret, but it is hidden, in the avalanche of data that the markets produce. What’s needed is some clear signal that will cut through the noise and indicate the right stocks for the times.
The quantity of data, and the sheer impossibility of parsing all of it in real time, makes a formidable barrier to successful stock picking – but Wall Street’s analysts have that part under control, which turns the question into one that’s much more manageable: which analysts to follow? The quick answer is, follow the top-ranked analysts.
Rick Schafer, from Oppenheimer, holds the #6 ranking out of more than 8,200 stock pros on Wall Street. The 74% success rate of his stock recommendations puts him head and shoulders above his peers – and his calls generated a 21% average return over the past 12 months. It’s an impressive record, and it makes his stock reviews always worth a second look.
So let’s do that. Using TipRank’s database, we’ve pulled up the latest scoop on three of Schafer’s recent picks. These are all Strong Buy equities – and Schafer sees them gaining over 40% in the coming months.
Akoustis Technologies, Inc. (ACTS)
We’ll start in the tech field, where Akoustis Technologies focuses on the development and use of single-crystal piezoelectric materials. These are a vital component of bulk acoustic wave (BAW) filters, a ubiquitous tech in mobile devices – the smartphones and tablets that are everywhere now. Akoustis designs, builds, and markets lines of BAW RF filters, and is known for its combination of wide filter bandwidth and superior performance.
The biggest recent news for Akoustis was the January 4 announcement that it had closed its acquisition of Grinding and Dicing Services, Inc. (GDSI). GDSI, a US-based provider of high-end semiconductor supply chain services, will make it possible for Akoustis to reshore much of its work to the US – an important advantage, as last year the Biden Administration saw the CHIPS and Science Act through Congress in an effort to repatriate high-tech supply chains at scale.
This important acquisition follows the company’s fiscal Q1 report. For the quarter ending on September 30, 2022, Q1 of fiscal year 2023, Akoustis reported its fourth consecutive quarter of record revenue. The company showed $5.6 million at the top line, for a gain of 195% year-over-year. Akoustis finished the quarter with more than $60 million in cash assets, a net loss per diluted share of 33 cents.
In his coverage of Akoustis, top analyst Schafer sees the GDSI acquisition as the main point for investors to consider right now, and he describes the benefits it’s likely to bring as being complementary to Akoustis’ overall position.
“GDSI bolsters AKTS backend capabilities and improves scale. Coupled with RFMi, we see a strengthened position in 5G RAN and smartphone. We see potential for multiple expansion as revenue ramps and management executes on WiFi, 5G RAN, and mobile milestones/profitability,” Schafer opined.
Schafer goes on to rate AKTS shares an Outperform (ie Buy), and his price target of $7 implies a one-year gain of 131% for the stock. (To watch Schafer’s track record, click here)
Overall, there are 3 recent analyst reviews on record for AKTS, and they all agree that it is a Buy – making the Strong Buy consensus rating unanimous. The shares are priced at $3.03 and their $6.33 average price target suggests an upside of ~109% for the next 12 months. (See ACT stock forecast)
Valens Semiconductor Ltd. (VLN)
Next up is Valens, a fabless semiconductor chip company; that is, the company designs chips and produces prototypes, and then contracts the large-scale production lines to third-party chip foundries. Valens was the first to develop HDBaseT tech, the industry standard in audio-video chips, and is an industry leader in A-PHY, known for allowing high-speed connectivity via simplified infrastructure. The company’s PHY tech has found numerous applications in automotive technology, and Valens counts such names as Mercedes-Benz and MobileEye among its customer base.
Valens entered the public trading markets in September of 2021, and since then the company has recorded a steady increase in its top line revenues. It showed total revenue of $23.1 million in 3Q22, a company record, and up 21% y/y. The company’s GAAP net loss moderated from $8.5 million in 3Q21 to 3Q22’s $5.3 million loss. The automotive business proved to be a driver of the revenue gains, and Valens reported continued expansion of its VA7000 chipset family, an important component of MIPI A-PHY-compliant automotive technologies. These chips are vital to an array of sensors – including cameras, radars, and LiDARs – that are becoming ever more common in modern vehicles.
Covering the stock for Oppenheimer, Rick Schafer describes a clear course forward for the company, including a potentially game-changing total addressable market in the automotive sector.
“Looking forward, we see accelerated growth led by auto… We see VA6000 chipset content $25/car and $50/truck… We see VA7000 chipset content goes to $100/car (ASP $5/chip, two chips/link, and 10 links/ cars). ~100M cars, we est. a $10B TAM opportunity. A-PHY reduces overall system cost by 15% vs. competing SerDes solutions. We expect VLN to announce two additional A-PHY design wins by mid-’23. We like the emergent VLN growth story,” Schafer opined.
In-line with an opportunity like this, Schafer rates Valens shares an Outperform (ie Buy) with a price target of $8 pointing towards a 41% one-year upside potential. (To watch Schafer’s track record, click here)
Overall, we’re looking at a tech firm with 3 positive analyst reviews supporting a Strong Buy consensus rating. Valens has a current trading price of $5.69 and its $8.33 average price target suggests a 46% upside by the end of this year. (See VLN stock forecast)
Marvell Technology Group (MRVL)
We’ll warp up with Marvell Technology, another leader in the automotive semiconductor chipset industry. In addition to cars, Marvell’s chips have found applications in data centers, especially in server functions, ethernet networks, and storage accelerators. The company’s chips are also used in SSD controllers.
All of this is big business, and Marvell, with its $33 billion market cap, shows that in its financial results. The last reported quarter was 3Q of fiscal year 2023, and Marvell’s top line came in at $1.53 billion, up 27% year-over-year.
Drilling down, we find that the revenue total supported several other positive metrics, including a GAAP net income of $13 million, or 2 cents per share – a solid turnaround from the GAAP loss of $62 million in the year-ago quarter. In non-GAAP measures, Marvell reported net income of $492 million, for a diluted EPS of 57 cents. the company saw $411 million in cash flow from operations during the quarter.
Even though Marvell has reported sound financial results, MRVL shares have seen a twelve-month loss of 47%.
In his coverage of this stock, Oppenheimer’s Schafer takes a bullish line, writing, “MRVL remains positioned for diverse, structural growth led by cloud, 5G, and auto. A top pick, we remain long-term buyers.”
Schafer maintains his Outperform (ie Buy) rating on Marvell, and his price target, at $70, indicates his confidence in ~80% share appreciation on the one-year horizon. (To watch Schafer’s track record, click here)
Big Tech gets plenty of Wall Street attention – and unsurprisingly, Marvell has 21 recent analyst reviews on record. These break down 20 to 1 favoring the Buys over Holds, for a Strong Buy consensus rating. Shares are trading at $39 and their $62.52 average price target implies a 60% upside for the coming year. (See MRVL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.