Tag Archives: MU

Mondays Vital Data: Apple, Micron and General Electric

U.S. stock futures are headed lower this morning, as Wall Street digests the possibility of more interest rate hikes in 2018. On Friday, Cleveland Fed President Loretta Mester hinted to Reuters at the possibility of four rate hikes this year. On Saturday, San Francisco Fed President John Williams backed the current pace of three hikes due to economic lift from the tax plan.

More from the Fed will arrive today. Atlanta Fed President Raphael Bostic is due to speak at the Rotary Club of Atlanta this afternoon. Additionally, Boston Fed President Eric Rosengren will participate in a panel to discuss whether Fed should stick to a 2% inflation target.

While futures were headed higher early this morning, they have since reversed course. At last check, Dow Jones Industrial Average futures are down 0.06%, S&P 500 futures are off 0.15% and Nasdaq-100 futures have fallen 0.13%.

Turning to the options pits, Friday’s volume remained brisk. Overall, about 20.5 million calls and 16.4 million puts changed hands. The CBOE single-session equity put/call volume ratio rose to 0.58. The 10-day moving average held at 0.56.

Taking a closer look at Friday’s options activity, Apple Inc. (NASDAQ:AAPL) attracted heavy call volume heading into what proved to be a rather rough weekend for the company. Meanwhile, Micron Technology, Inc. (NASDAQ:MU) options received a sentiment boost after a bullish note on memory chip demand from Keybank. Finally, General Electric Company (NYSE:GE), last year’s ultimate dog of the Dow, has emerged as one of 2018’s top 10 favorites.

Monday’s Vital Options Data: Apple Inc (AAPL), Micron Technology, Inc. (MU) and General Electric Company (GE)investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-300×138.png 300w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-200×92.png 200w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-400×184.png 400w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-116×53.png 116w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-100×46.png 100w,https://investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-109×50.png 109w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-78×36.png 78w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-170×78.png 170w” sizes=”(max-width: 547px) 100vw, 547px” />

Apple Inc (AAPL)

Apple stock options were extremely call heavy on Friday. Volume topped out at 543,000 contracts, with calls snapping up an above average 69% of the day’s take. The net effect was to drive AAPL’s January 2018 put/call open interest ratio lower from a reading near 1.16 to today’s perch at 1.12.

Sentiment was up after the company said that it would quickly patch any semiconductor vulnerabilities. Chip stocks were hit hard after revelations of exploits affecting Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD) processors.

Today, however, could be a different story. Apple was hit with fresh concerns over worker conditions in China following the suicide of a Foxconn worker at an iPhone production plant this weekend. Additionally, investors are calling for Apple to investigate the potential harm of iPhone and tablet-like devices on children.

AAPL stock is down fractionally in pre-market trading.

Micron Technology, Inc. (MU)

Micron stock remained volatile on Friday, despite a bullish research note from analysts at Keybanc. According to Keybanc, news in the DRAM and NAND markets is “neutral to good.” Specifically, DRAM supply is tight and should help support prices, while NAND is headed for “oversupply.” However, NAND oversupply should work its way out of the system later this year, returning pricing power to Micron.

Options traders appeared to take profits following the recent run higher, however. Volume on Friday rose to 305,000 contracts, with calls accounting for 65% of the day’s take.

The resulting January 2018 put/call OI ratio rose to 0.65 from last week’s reading of 0.62. The activity hints that options traders may be taking profits after MU rallied more than 11% last week.

General Electric Company (GE)

After finishing 2017 as the worst performing member of the Dow Jones Industrial Average, GE stock has emerged as one of the potential top performers of 2018. General Electric has made the top 10 list of several notable top-ranked stock newsletters, including George Putnam’s, The Turnaround Letter.

GE stock is already up more than 6% in 2018, enjoying a solid first week for the year. Options traders have also taken up the bullish call. Volume on Friday rose to 272,000 contracts, or more than 1.5 times GE’s daily average. Calls gobbled up 72% of the day’s take.

Short-term options traders have grown heavily bullish on GE stock heading into the first expiration of 2018. Specifically, the January put/call OI ratio has fallen to a reading of 0.43, with calls more than doubling puts among front-month options.

Finally, there could be more gains to come. GE closed above its 50-day moving average on Friday and could be set to challenge resistance at $19 this week. A breakout above resistance at $19 could be a significant short-term boon for GE bulls.

As of this writing, Joseph Hargett was long General Electric Company (GE) stock.

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Tuesdays Vital Data: Micron Technology, Inc. (MU), General Electric Company (GE) and Amazon.com,

U.S. stock futures are mixed heading into the first trading day of 2018. Investors appear to be searching for a new driver for the major market indices now that tax reform has passed.

stock market todayGeopolitical concerns are headlining this morning, with North Korean leader Kim Jong Un claiming to have a “nuclear button.” However, Un suggested he is willing to engage in talks with South Korea at next month’s Winter Olympics.

Heading into the open, futures on the Dow Jones Industrial Average are up 0.28%, S&P 500 futures are up 0.28% and Nasdaq-100 futures have added 0.37%.

Turning to the options pits, Friday’s volume was respectable despite being on the light side. Overall, about 13.8 million calls and 11.8 million puts changed hands. The CBOE single-session equity put/call volume ratio rose to a one-week high of 0.59 and the 10-day moving average held at 0.57.

Taking a closer look at Friday’s options activity, Micron Technology, Inc. (NASDAQ:MU) attracted heavy call volume on the last trading day of 2017. Elsewhere, General Electric Company (NYSE:GE) options traders held out hope that 2018 couldn’t get any worse. Finally, President Donald Trump took aim at Amazon.com, Inc.’s (NASDAQ:AMZN) relationship with the U.S. Postal Service.

Tuesday’s Vital Options Data: Micron Technology, Inc. (MU), General Electric Company (GE) and Amazon.com, Inc. (AMZN)investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-300×137.png 300w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-200×92.png 200w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-400×183.png 400w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-116×53.png 116w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-100×46.png 100w,https://investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-109×50.png 109w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-78×36.png 78w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-170×78.png 170w” sizes=”(max-width: 548px) 100vw, 548px” />

Micron Technology, Inc. (MU)

MU finished 2017 as the fastest growing semiconductor stock, with a gain of more than 87% on the year. Micron rode a wave of growth in the memory market, with strong memory prices vaulting the company into the top five semiconductor stocks by revenue. What’s more, investors appear to be betting on the trend to carry over into 2018.

Volume on the last trading day of 2017 came in at a brisk pace for MU stock. More than 301,000 MU options contracts traded on Friday, with calls making up 69% of the day’s take. Overall, MU’s January 2018 put/call open interest ratio rests at a lowly perch of 0.63 for the first expiration month of 2018.

But calls did not hold a monopoly on MU’s options activity on Friday. Data from Trade-Alert.com reveals that a block of 10,000 July $40 puts traded in the early afternoon at the bid price of $4.30, or $430 per contract. These contracts appear to have been sold to open. This means that the trader is either looking to pick up MU stock at $40 on a pullback, or expecting MU stock to hold above $40 through expiration.

General Electric Company (GE)

GE was 2017’s Dog of the Dow. The stock shed nearly half its value last year amid restructuring concerns as new CEO John Flannery did everything in his power to slash costs, layoff workers and sell underperforming divisions.

But General Electric pays out a quarterly dividend of 43 cents per share, resulting in a dividend yield of 2.75% — among the highest on the Dow right now. As a result, many investors are looking at GE stock as a potential value play for 2018. Among those betting on a bounce are GE options traders.

On Friday, GE options volume rose to 230,000 contracts, or roughly 1.5 times the stock’s daily average. Calls made up an impressive 67% of the day’s take.

Furthermore, it would appear that many of these calls were opened in the January 2018 series, as the put/call OI ratio fell from 0.50 last week to today’s perch at 0.48. In other words, GE options traders are betting on a fresh start for 2018 for this Dog of the Dow.

Amazon.com, Inc. (AMZN)

With a gain of roughly 56%, AMZN stock put in a stellar performance in 2017. But that strong performance has drawn considerable ire from the current U.S. administration. President Trump tweeted out that Amazon is giving the U.S. Postal Service a raw deal.

“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!” Trump said on Twitter.

AMZN options traders took the criticism in stride, however. Volume on Friday rose to 143,000 contracts, with calls managing 55% of the day’s take. Still, AMZN options activity points toward skepticism for the first month of the year.

Currently, the January 2018 put/call OI ratio rests at 1.15 for AMZN, with puts outnumbering calls. That said, such activity is not unusual for a stock trading north of $1,000, given that premiums on near-the-money options are considerably high. As a result, many of these AMZN puts were likely sold-to-open in the hopes of capturing premium.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Mondays Vital Data: Apple, Micron and General Electric

U.S. stock futures are headed lower this morning, as Wall Street digests the possibility of more interest rate hikes in 2018. On Friday, Cleveland Fed President Loretta Mester hinted to Reuters at the possibility of four rate hikes this year. On Saturday, San Francisco Fed President John Williams backed the current pace of three hikes due to economic lift from the tax plan.

More from the Fed will arrive today. Atlanta Fed President Raphael Bostic is due to speak at the Rotary Club of Atlanta this afternoon. Additionally, Boston Fed President Eric Rosengren will participate in a panel to discuss whether Fed should stick to a 2% inflation target.

While futures were headed higher early this morning, they have since reversed course. At last check, Dow Jones Industrial Average futures are down 0.06%, S&P 500 futures are off 0.15% and Nasdaq-100 futures have fallen 0.13%.

Turning to the options pits, Friday’s volume remained brisk. Overall, about 20.5 million calls and 16.4 million puts changed hands. The CBOE single-session equity put/call volume ratio rose to 0.58. The 10-day moving average held at 0.56.

Taking a closer look at Friday’s options activity, Apple Inc. (NASDAQ:AAPL) attracted heavy call volume heading into what proved to be a rather rough weekend for the company. Meanwhile, Micron Technology, Inc. (NASDAQ:MU) options received a sentiment boost after a bullish note on memory chip demand from Keybank. Finally, General Electric Company (NYSE:GE), last year’s ultimate dog of the Dow, has emerged as one of 2018’s top 10 favorites.

Monday’s Vital Options Data: Apple Inc (AAPL), Micron Technology, Inc. (MU) and General Electric Company (GE)investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-300×138.png 300w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-200×92.png 200w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-400×184.png 400w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-116×53.png 116w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-100×46.png 100w,https://investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-109×50.png 109w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-78×36.png 78w, investorplace.com/wp-content/uploads/2018/01/01-08-2017-Top-Ten-Options-170×78.png 170w” sizes=”(max-width: 547px) 100vw, 547px” />

Apple Inc (AAPL)

Apple stock options were extremely call heavy on Friday. Volume topped out at 543,000 contracts, with calls snapping up an above average 69% of the day’s take. The net effect was to drive AAPL’s January 2018 put/call open interest ratio lower from a reading near 1.16 to today’s perch at 1.12.

Sentiment was up after the company said that it would quickly patch any semiconductor vulnerabilities. Chip stocks were hit hard after revelations of exploits affecting Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD) processors.

Today, however, could be a different story. Apple was hit with fresh concerns over worker conditions in China following the suicide of a Foxconn worker at an iPhone production plant this weekend. Additionally, investors are calling for Apple to investigate the potential harm of iPhone and tablet-like devices on children.

AAPL stock is down fractionally in pre-market trading.

Micron Technology, Inc. (MU)

Micron stock remained volatile on Friday, despite a bullish research note from analysts at Keybanc. According to Keybanc, news in the DRAM and NAND markets is “neutral to good.” Specifically, DRAM supply is tight and should help support prices, while NAND is headed for “oversupply.” However, NAND oversupply should work its way out of the system later this year, returning pricing power to Micron.

Options traders appeared to take profits following the recent run higher, however. Volume on Friday rose to 305,000 contracts, with calls accounting for 65% of the day’s take.

The resulting January 2018 put/call OI ratio rose to 0.65 from last week’s reading of 0.62. The activity hints that options traders may be taking profits after MU rallied more than 11% last week.

General Electric Company (GE)

After finishing 2017 as the worst performing member of the Dow Jones Industrial Average, GE stock has emerged as one of the potential top performers of 2018. General Electric has made the top 10 list of several notable top-ranked stock newsletters, including George Putnam’s, The Turnaround Letter.

GE stock is already up more than 6% in 2018, enjoying a solid first week for the year. Options traders have also taken up the bullish call. Volume on Friday rose to 272,000 contracts, or more than 1.5 times GE’s daily average. Calls gobbled up 72% of the day’s take.

Short-term options traders have grown heavily bullish on GE stock heading into the first expiration of 2018. Specifically, the January put/call OI ratio has fallen to a reading of 0.43, with calls more than doubling puts among front-month options.

Finally, there could be more gains to come. GE closed above its 50-day moving average on Friday and could be set to challenge resistance at $19 this week. A breakout above resistance at $19 could be a significant short-term boon for GE bulls.

As of this writing, Joseph Hargett was long General Electric Company (GE) stock.

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10 Stocks to Buy for Surefire Gains in 2018 and Beyond

With everyone looking ahead now to 2018, investors are getting bombarded with ideas regarding the best stocks to buy.

Everyone has their own suggestion about which stocks are going to hit the big time in the coming months, but fear not! Here we have a list of 10 sure-fire winners that tick all the boxes. These stocks to buy are not purely subjective. Instead, they have big support from the Street’s top analysts and the upside potential to match based on the average analyst price target.

I found these stocks using a nifty Top Analyst Stocks tool on TipRanks. This pulls up stocks with bullish recent ratings from multiple top analysts. Scanning through this list, I was able to identify 10 top stocks that make compelling investing opportunities right now. Just to note, I purposefully eliminated stocks that only have big upside potential because share prices are plummeting.

With that in mind, let’s dive in and see which stocks make the cut for 2018:

Stocks to Buy: Micron (MU) Stocks to Buy: Micron (MU)investorplace.com/wp-content/uploads/2017/09/mumsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/09/mumsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/09/mumsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/09/mumsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/09/mumsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/09/mumsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/09/mumsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/09/mumsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/09/mumsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/09/mumsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Over the last three months, semiconductor stock Micron Technology, Inc. (NASDAQ:MU) has received a whopping 19 buy ratings and just 3 hold ratings. As a result, the stock has a ‘Strong Buy’ analyst consensus rating. These analysts believe (on average) that Micron has big upside potential of over 30% from the current share price. This would take MU from $44.12 all the way to $57.65. Bear in mind, MU has already doubled year-to-date!

Five-star Rajvindra Gill assigned a buy rating to MU with a very confident $76 price target on Dec. 20 (72% upside). He says the market is undervaluing MU and he sees serious potential in: 1) 3D NAND transition, which generates a significant cost advantage (30%-35%); and 2) technology limitations in DRAM supply growth.

“We believe investors are focusing too heavily on a NAND pricing decline to see the big picture. With another record quarter and guide (beat revenue and EPS consensus by 5.6% and 11.4%, respectively) in the bag, Micron is on track to generate quarterly EPS of nearly $2.50 or roughly $10 per share of annualized earnings” said Gill on Dec. 20.

Note that this is a top analyst worth following. He is ranked No. 43 out of over 4,700 analysts tracked by TipRanks.

Stocks to Buy: Spark Therapeutics (ONCE)

Stocks to Buy: Spark Therapeutics (ONCE)investorplace.com/wp-content/uploads/2017/08/oncemsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/08/oncemsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/08/oncemsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/08/oncemsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/08/oncemsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/08/oncemsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/08/oncemsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/08/oncemsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/08/oncemsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/08/oncemsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />

Spark Therapeutic Inc’s (NASDAQ:ONCE) innovative gene therapy has just received a critical approval from the Food and Drug Administration. Excitingly, this is the first gene therapy to restore sight to individuals with a rare inherited eye disease that can cause blindness. The treatment, known as Luxturna, can treat both children and adults. Following the news, three analysts quickly reiterated their Spark buy ratings.

“Today’s approval marks another first in the field of gene therapy — both in how the therapy works and in expanding the use of gene therapy beyond the treatment of cancer,” said FDA commissioner Scott Gottlieb. “This milestone reinforces the potential of this breakthrough approach in treating a wide range of challenging diseases.”

Overall this ‘Strong Buy’ stock has a bullish average analyst price target of $73 (38% upside potential). We don’t know the drug’s price just yet, but Phil Nadeau, a top Cowen & Co analyst, says: “$500,000 per procedure is reasonable for a once-per-lifetime therapy that has the potential to be curative.”

Meanwhile, Raymond James’ Reni Benjamin notes that: “1) with no negative surprises, the label is slightly better than expected, only excluding the use of this gene therapy in infants under 12 months of age; 2) Spark also received a Rare Pediatric Disease Priority Review Voucher, which we estimate is worth approximately $125 million based on recent transactions.”

Stocks to Buy: Alcoa (AA) Stocks to Buy: Alcoa (AA)investorplace.com/wp-content/uploads/2016/06/aamsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/06/aamsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/06/aamsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/06/aamsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/06/aamsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/06/aamsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/06/aamsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/06/aamsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/06/aamsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Josh Hallett via Flickr (Modified)

Pennsylvania-based Alcoa Corp (NYSE:AA) is the world’s sixth largest producer of aluminum with locations all over the world. The stock is catching the attention of investors following a bullish upgrade from Credit Suisse. On Dec. 20, five-star Credit Suisse analyst Curt Woodworth ramped up his price target from $42 to $61. This now suggests 22% upside potential from the current price. Woodworth is anticipating that tighter aluminum supply will push up prices due to alumina and bauxite closures.

“We note three smelters curtailed production last week, and the government is set to sharply increase inspections in January. We expect the aluminum market to tighten into late 1Q-18 as downstream demand sharply recovers.” Plus, China’s increased commitment to environmental policy will further curtail supply according to Woodworth.

Overall, AA has a ‘Strong Buy’ rating, with only buy ratings from top analysts in the last three months. At the same time, the average analyst price target of $60 stands at 20% upside from the current share price.

Stocks to Buy: MasTec (MTZ) Stocks to Buy: MasTec (MTZ)investorplace.com/wp-content/uploads/2017/01/mtzmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/01/mtzmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/01/mtzmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/01/mtzmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/01/mtzmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/01/mtzmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/01/mtzmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/01/mtzmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/01/mtzmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/01/mtzmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Keep a close eye on Florida-based specialty contractor engineer MasTec, Inc. (NYSE:MTZ) in 2018. The company’s work spans electric power infrastructure, oil and natural gas pipelines, renewable energy facilities and wireless networks. Strength across the board has resulted in 100% Street support with seven analysts publishing recent buy ratings. Indeed, MTZ has received no hold or sell ratings from the Street for over 8 months.

“We reiterate a BUY on MTZ ahead of what we expect to be increasing 2018 estimates and an expanding multiple. With all segments poised for growth in 2018, a more diversified positive top line performance is likely to be enhanced on the bottom line by better Oil and Gas margins and a generally improving pricing and mix environment from large projects” writes top Canaccord Genuity analyst Robert Burleson. His buy rating comes with a $58 price tag (15% upside). We can also see that he has an incredible track record on his MTZ ratings with a 100% success rate and 51.6% average return.

Stocks to Buy: TherapeuticsMD (TXMD) Stocks to Buy: TherapeuticsMD (TXMD)investorplace.com/wp-content/uploads/2017/12/txmdmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/12/txmdmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/12/txmdmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/12/txmdmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/12/txmdmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/12/txmdmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/12/txmdmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/12/txmdmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/12/txmdmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/12/txmdmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

I have already banged on about TherapeuticsMD Inc (NASDAQ:TXMD) in my recent piece on top healthcare stocks. But this is an intriguing stock pick that I felt was worth including again. TXMD is a unique biotech making waves in the world of female healthcare. The company develops and commercializes products exclusively for women. Its lead product candidate is the TX-004 soft gel capsule for post-menopausal pain. This approach clearly has the backing of the Street, as TXMD has a Strong Buy analyst consensus rating.

In fact, in the last three months, TherapeuticsMD has received seven back-to-back buy ratings. Plus the $15.30 average analyst price target represents a huge 161% upside from the $6 current share price. Crucially, even the lowest price target of $9 from Noble Financial and Deutsche Bank still suggests 55% upside potential.

The most bullish analyst of the pack is top Cantor Fitzgerald analyst William Tanner. He reiterated his TXMD buy rating on Dec. 19 with a $28 price target. Tanner notes that the FDA has opted to conduct a longer Class 2 review of TX-004. But ultimately, he calls the drug ‘an important new therapy’ for atrophy. He says: “We believe the likelihood of approval is high, 85% probability, the highest we use to account for some revenue forecasting uncertainty.”

Stocks to Buy: Amazon (AMZN) Stocks to Buy: Amazon (AMZN)investorplace.com/wp-content/uploads/2016/05/amznmsn2-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/05/amznmsn2-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/05/amznmsn2-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/05/amznmsn2-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/05/amznmsn2-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/05/amznmsn2-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/05/amznmsn2-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/05/amznmsn2-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/05/amznmsn2-170×93.jpg 170w” sizes=”(max-width: 728px)100vw, 728px” />Source: Mike Seyfang via Flickr

Year-to-date Amazon.com, Inc. (NASDAQ:AMZN) has already soared by 56%. But even with shares at $1,176, we can see that the Street still sees AMZN spiking over 11% to $1,311. In fact, in the last three months this stock has received an eyebrow-raising 33 buy ratings vs. just one hold rating.

The most recent rating comes from top RBC Capital analyst Mark Mahaney. He has just carried out a survey on Amazon’s intelligent personal assistant Alexa. And he likes what he sees. “Following our third annual Alexa survey, we are more impressed with the traction of these devices and more convinced of their potential long-term impact. With tens of millions of users and 20K+ skills, we see Alexa’s value prop as becoming increasingly powerful as awareness and ownership ramp. We think AMZN could see $10-$11B in Alexa-related Rev by 2020.”

In fact, recent reports suggest Alexa made a popular holiday gift. On Christmas Day, Amazon’s Alexa app took the No. 1 spots on both the U.S. Google Play and iPhone App Stores’ free app charts.

Stocks to Buy: Comcast (CMCSA) Stocks to Buy: Comcast (CMCSA)investorplace.com/wp-content/uploads/2016/09/cmcsamsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/09/cmcsamsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/09/cmcsamsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/09/cmcsamsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/09/cmcsamsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/09/cmcsamsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/09/cmcsamsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/09/cmcsamsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/09/cmcsamsn-170×93.jpg 170w” sizes=”(max-width: 728px)100vw, 728px” />Source: Mike Mozart via Flickr

The cable sector has been down in the dumps, but it is now looking for a comeback in 2018. And there is one company that stands out in particular: mass media king Comcast Corporation (NASDAQ:CMCSA). In the last three months, Comcast scores 10 out of 10, with 10 consecutive buy ratings from the Street. These analysts have an average price target of $45- 10% upside from the current share price.

Top Pivotal Research analyst Jeffrey Wlodarczak is confident that the stock is setup for a solid 2018. On Dec. 19, he told investors: “Recall, our belief that the cable malaise would be winding down by year-end ’17 and we continue to believe that this is the case. Comcast management’s data guidance raise in 4Q, implied material acceleration in capital returns and ’18 cable EBITDA margin expansion helped alleviate these investor fears.”

Plus, he believes that “the elimination of net neutrality laws, which effectively gave regulatory cover for video/phone competitors to freely use the cable plant, should also help with monetization.” His $50 price target translates into 22% upside potential.

Stocks to Buy: Smart Global Holdings (SGH) Stocks to Buy: Smart Global Holdings (SGH)investorplace.com/wp-content/uploads/2017/12/SGHmsn-300×150.jpg 300w, investorplace.com/wp-content/uploads/2017/12/SGHmsn-768×384.jpg 768w, investorplace.com/wp-content/uploads/2017/12/SGHmsn-60×30.jpg 60w, investorplace.com/wp-content/uploads/2017/12/SGHmsn-200×100.jpg 200w, investorplace.com/wp-content/uploads/2017/12/SGHmsn-400×200.jpg 400w, investorplace.com/wp-content/uploads/2017/12/SGHmsn-116×58.jpg 116w, investorplace.com/wp-content/uploads/2017/12/SGHmsn-100×50.jpg 100w, investorplace.com/wp-content/uploads/2017/12/SGHmsn-78×39.jpg 78w, investorplace.com/wp-content/uploads/2017/12/SGHmsn-800×400.jpg 800w,https://investorplace.com/wp-content/uploads/2017/12/SGHmsn-170×85.jpg 170w” sizes=”(max-width: 950px) 100vw, 950px” />Source: Shutterstock

SGH is a global leader in specialty memory, storage and hybrid solutions for the electronics industry for over 25 years. On the back of a strong beat and raise quarter, three analysts reiterated their Smart Global Holdings Inc (NASDAQ:SGH) buy ratings on Dec. 22. Shares popped 10% on the news. And now these analysts say shares can move another 25% from the current share price to hit $43.

SGH CEO Iain MacKenzie commented that the company enjoyed “strength across the board.” Revenue, gross margin and earnings-per-share all exceeded the high ends of previous guidance. He now has even higher hopes for the coming quarters, due to Brazil and the improving global memory market. Indeed, current strength in Brazil is expected to continue throughout the year as the economy recovers.

Stocks to Buy: Aerie Pharmaceuticals (AERI) Stocks to Buy: Aerie Pharmaceuticals (AERI)investorplace.com/wp-content/uploads/2017/07/biotechmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/07/biotechmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/07/biotechmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/07/biotechmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/07/biotechmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/07/biotechmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/07/biotechmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/07/biotechmsn-91×50.jpg 91w,https://investorplace.com/wp-content/uploads/2017/07/biotechmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/07/biotechmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Eye disease pharma Aerie Pharmaceuticals Inc (NASDAQ:AERI) received an early holiday gift from the FDA. The US regulatory body has just approved Aerie’s lead product Rhopressa two months ahead of schedule. Aerie is now set to hire a 100-person strong sales force in preparation for launch in 2Q18.

“The FDA has approved Aerie’s Rhopressa drug for the treatment of patients with open angle glaucoma or ocular hypertension. We see this announcement as a positive for the company and also a positive read-through for the potential upcoming approval of Roclatan in 2019,” writes five-star Mizuho analyst Difei Yang.

Intriguingly, she also adds: The approval of Rhopressa reinforces our view that Aerie Pharmaceuticals is a strong takeout candidate.” Yang has an $87 price target on the stock and a very strong AERI track record (86% success rate and 73% average return).

Overall, AERI boasts 100% Street support with 7 buy ratings in the last three months. These analysts believe (on average) that AERI can leap a further 32% in the coming months.

Stocks to Buy: Facebook (FB) Stocks to Buy: Facebook (FB)investorplace.com/wp-content/uploads/2017/11/fbmsn-300×150.jpg 300w, investorplace.com/wp-content/uploads/2017/11/fbmsn-768×384.jpg 768w, investorplace.com/wp-content/uploads/2017/11/fbmsn-60×30.jpg 60w, investorplace.com/wp-content/uploads/2017/11/fbmsn-200×100.jpg 200w, investorplace.com/wp-content/uploads/2017/11/fbmsn-400×200.jpg 400w, investorplace.com/wp-content/uploads/2017/11/fbmsn-116×58.jpg 116w, investorplace.com/wp-content/uploads/2017/11/fbmsn-100×50.jpg 100w, investorplace.com/wp-content/uploads/2017/11/fbmsn-78×39.jpg 78w, investorplace.com/wp-content/uploads/2017/11/fbmsn-800×400.jpg 800w,https://investorplace.com/wp-content/uploads/2017/11/fbmsn-170×85.jpg 170w” sizes=”(max-width: 950px) 100vw, 950px” />Source: Shutterstock

Social media giant Facebook Inc (NASDAQ:FB) has a big catalyst heading its way for 2018. The company has already premiered its ‘Watch’ tab, but 2018 could be the year where it really takes off. (Of course, this is on top of all the stock’s other catalysts like Instagram, WhatsApp and a new Direct messaging app.)

One of TipRanks’ top 100 analysts, Brent Thrill, believes the ‘Watch’ tab is about to make a sizeable impact on user video consumption. He says the tab will drive video engagement alongside improved network effects and sharing. Plus, Facebook’s data-driven approach to content and partner revenue share agreements is the smart way to go. He is now looking for revenue purely from the Watch tab to hit $12 billion in 2022. Thrill’s $225 price target suggests considerable upside of 27% from the current share price.

Strong Buy stock FB has scored 30 buy ratings and just 1 sell rating in the last three months. Meanwhile, the average analyst price target of $210 indicates 19% upside potential.

TipRanks offers investors the latest insight into eight different sectors by tracking the activity of 4,700 analysts, 5,000 financial bloggers and even 37,000 corporate insiders. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.

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Tuesdays Vital Data: Micron Technology, Inc. (MU), General Electric Company (GE) and Amazon.com,

U.S. stock futures are mixed heading into the first trading day of 2018. Investors appear to be searching for a new driver for the major market indices now that tax reform has passed.

stock market todayGeopolitical concerns are headlining this morning, with North Korean leader Kim Jong Un claiming to have a “nuclear button.” However, Un suggested he is willing to engage in talks with South Korea at next month’s Winter Olympics.

Heading into the open, futures on the Dow Jones Industrial Average are up 0.28%, S&P 500 futures are up 0.28% and Nasdaq-100 futures have added 0.37%.

Turning to the options pits, Friday’s volume was respectable despite being on the light side. Overall, about 13.8 million calls and 11.8 million puts changed hands. The CBOE single-session equity put/call volume ratio rose to a one-week high of 0.59 and the 10-day moving average held at 0.57.

Taking a closer look at Friday’s options activity, Micron Technology, Inc. (NASDAQ:MU) attracted heavy call volume on the last trading day of 2017. Elsewhere, General Electric Company (NYSE:GE) options traders held out hope that 2018 couldn’t get any worse. Finally, President Donald Trump took aim at Amazon.com, Inc.’s (NASDAQ:AMZN) relationship with the U.S. Postal Service.

Tuesday’s Vital Options Data: Micron Technology, Inc. (MU), General Electric Company (GE) and Amazon.com, Inc. (AMZN)investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-300×137.png 300w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-200×92.png 200w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-400×183.png 400w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-116×53.png 116w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-100×46.png 100w,https://investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-109×50.png 109w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-78×36.png 78w, investorplace.com/wp-content/uploads/2018/01/01-02-2018-Top-Ten-Options-170×78.png 170w” sizes=”(max-width: 548px) 100vw, 548px” />

Micron Technology, Inc. (MU)

MU finished 2017 as the fastest growing semiconductor stock, with a gain of more than 87% on the year. Micron rode a wave of growth in the memory market, with strong memory prices vaulting the company into the top five semiconductor stocks by revenue. What’s more, investors appear to be betting on the trend to carry over into 2018.

Volume on the last trading day of 2017 came in at a brisk pace for MU stock. More than 301,000 MU options contracts traded on Friday, with calls making up 69% of the day’s take. Overall, MU’s January 2018 put/call open interest ratio rests at a lowly perch of 0.63 for the first expiration month of 2018.

But calls did not hold a monopoly on MU’s options activity on Friday. Data from Trade-Alert.com reveals that a block of 10,000 July $40 puts traded in the early afternoon at the bid price of $4.30, or $430 per contract. These contracts appear to have been sold to open. This means that the trader is either looking to pick up MU stock at $40 on a pullback, or expecting MU stock to hold above $40 through expiration.

General Electric Company (GE)

GE was 2017’s Dog of the Dow. The stock shed nearly half its value last year amid restructuring concerns as new CEO John Flannery did everything in his power to slash costs, layoff workers and sell underperforming divisions.

But General Electric pays out a quarterly dividend of 43 cents per share, resulting in a dividend yield of 2.75% — among the highest on the Dow right now. As a result, many investors are looking at GE stock as a potential value play for 2018. Among those betting on a bounce are GE options traders.

On Friday, GE options volume rose to 230,000 contracts, or roughly 1.5 times the stock’s daily average. Calls made up an impressive 67% of the day’s take.

Furthermore, it would appear that many of these calls were opened in the January 2018 series, as the put/call OI ratio fell from 0.50 last week to today’s perch at 0.48. In other words, GE options traders are betting on a fresh start for 2018 for this Dog of the Dow.

Amazon.com, Inc. (AMZN)

With a gain of roughly 56%, AMZN stock put in a stellar performance in 2017. But that strong performance has drawn considerable ire from the current U.S. administration. President Trump tweeted out that Amazon is giving the U.S. Postal Service a raw deal.

“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!” Trump said on Twitter.

AMZN options traders took the criticism in stride, however. Volume on Friday rose to 143,000 contracts, with calls managing 55% of the day’s take. Still, AMZN options activity points toward skepticism for the first month of the year.

Currently, the January 2018 put/call OI ratio rests at 1.15 for AMZN, with puts outnumbering calls. That said, such activity is not unusual for a stock trading north of $1,000, given that premiums on near-the-money options are considerably high. As a result, many of these AMZN puts were likely sold-to-open in the hopes of capturing premium.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Micron Technology Q1 Earnings: The Chip Boom Continues

Large cap memory stockMicron Technology (NASDAQ: MU) reportedfiscal Q1 2018 earnings after the Tuesday market close with results beating expectationsbenefited from a chip boom fuelled by demand from personal computer, server and smartphone makers.

Revenues rose 71% to$6.80 billion and were also11% higher compared to the fourth quarter of 2017, reflecting increased demand for our mobile, server and SSD products. GAAP net income was $2.678 billion versus net income of $2.368 billion for Q4 2017 and net income of $180 million.Micron President and CEO Sanjay Mehrotra commented:

“Micron’s strong results were driven by double-digit sequential revenue growth in mobile, server and SSD applications, with expanded gross margins and improved profitability.

“We are making solid progress on our strategic priorities to drive cost competitiveness, deploy high value solutions and strengthen our balance sheet. We believe these actions will position Micron to benefit from the broad demand trends ahead of us.”

A technical chart for Micron Technology shows shares peaking in November and then dropping off a bit since then:

A long term performance chart shows shares of Micron Technology peaking in late 2014 andbottoming in 2016 before taking off again to above previous all time highs whilepotential performance benchmarks likeIntel Corporation (NASDAQ: INTC), Western Digital Corp (NASDAQ: WDC) and the Market Vectors Semiconductor ETF (NYSEARCA: SMH) have all given positive performances:

Finally, here is a quick recap of large cap Micron Technologys recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page going into the current earnings report:

Earnings History11/29/20162/27/20175/30/20178/30/2017
EPS Est. 0.28 0.86 1.51 1.84
EPS Actual 0.32 0.9 1.62 2.02
Difference 0.04 0.04 0.11 0.18
Surprise % 14.30% 4.70% 7.30% 9.80%
EPS TrendCurrent Qtr. (Nov 2017)Next Qtr. (Feb 2018)Current Year (2018)Next Year (2019)
Current Estimate 2.21 2.03 7.96 6.82
7 Days Ago 2.19 2 7.89 6.77
30 Days Ago 2.18 1.96 7.72 6.83
60 Days Ago 2.17 1.92 7.61 6.7
90 Days Ago 1.82 1.57 6.35 5.35

Micron Technology Q1 Earnings: The Chip Boom Continues

Large cap memory stockMicron Technology (NASDAQ: MU) reportedfiscal Q1 2018 earnings after the Tuesday market close with results beating expectationsbenefited from a chip boom fuelled by demand from personal computer, server and smartphone makers.

Revenues rose 71% to$6.80 billion and were also11% higher compared to the fourth quarter of 2017, reflecting increased demand for our mobile, server and SSD products. GAAP net income was $2.678 billion versus net income of $2.368 billion for Q4 2017 and net income of $180 million.Micron President and CEO Sanjay Mehrotra commented:

“Micron’s strong results were driven by double-digit sequential revenue growth in mobile, server and SSD applications, with expanded gross margins and improved profitability.

“We are making solid progress on our strategic priorities to drive cost competitiveness, deploy high value solutions and strengthen our balance sheet. We believe these actions will position Micron to benefit from the broad demand trends ahead of us.”

A technical chart for Micron Technology shows shares peaking in November and then dropping off a bit since then:

A long term performance chart shows shares of Micron Technology peaking in late 2014 andbottoming in 2016 before taking off again to above previous all time highs whilepotential performance benchmarks likeIntel Corporation (NASDAQ: INTC), Western Digital Corp (NASDAQ: WDC) and the Market Vectors Semiconductor ETF (NYSEARCA: SMH) have all given positive performances:

Finally, here is a quick recap of large cap Micron Technologys recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page going into the current earnings report:

Earnings History11/29/20162/27/20175/30/20178/30/2017
EPS Est. 0.28 0.86 1.51 1.84
EPS Actual 0.32 0.9 1.62 2.02
Difference 0.04 0.04 0.11 0.18
Surprise % 14.30% 4.70% 7.30% 9.80%
EPS TrendCurrent Qtr. (Nov 2017)Next Qtr. (Feb 2018)Current Year (2018)Next Year (2019)
Current Estimate 2.21 2.03 7.96 6.82
7 Days Ago 2.19 2 7.89 6.77
30 Days Ago 2.18 1.96 7.72 6.83
60 Days Ago 2.17 1.92 7.61 6.7
90 Days Ago 1.82 1.57 6.35 5.35

Why It’s Time for Investors to Buy Intel Corporation Stock

Intel Corporation (NASDAQ:INTC) has resumed its upward move after a rough November for the chip industry. As I stated in a previous article, Intel has turned its focus away from the PC market back to the leading edge of modern technology.

INTC stock took a hit along with its competitors. However, after taking a comparatively minor hit, Intel is again poised to assume a leadership role in the technology industry and take the stock along with it.

Tech Leadership Is INTC’s Mission

The semiconductor industry as a whole took a hit when Morgan Stanley reported that the shortage in NAND memory was coming to an end.

Advanced Micro Devices, Inc. (NASDAQ:AMD), Qualcomm, Inc. (NASDAQ:QCOM), Micron Technology, Inc. (NASDAQ:MU) and Nvidia Corporation (NASDAQ:NVDA) all saw steep declines. Intel did not completely escape this trend, but the INTC stock price saw a more modest decline.

A mild reaction to bad news bodes well for investors. Moreover, Intel intends to produce the technology to back up its reputation. In an internal memo recently, CEO Brian Krzanich said he’d do whatever it takes to remain at the forefront of technology.

This INTC news reinforces the company’s commitment to compete in artificial intelligence (AI), virtual reality (VR), self-driving cars and the Internet of Things (IoT). Buying companies such as Altera, Mobileye, Movidius and Nervana reinforce this drive to keep the world running on Intel chips.

In addition, Intel also stands well-positioned financially to resume its role in the tech industry. Intel has large reserves of cash to purchase companies as well as the drive to participate in newer tech markets. These advances bring welcome news to investors, many of whom wrote off Intel as the company clinging to its PC business.

Despite the growth, the company’s price-to-earnings (PE) ratio stands at 16.5 at the current INTC stock price. Of all its major competitors, only Micron carries a lower PE. The other companies have more than double the PE if they have one at all.

Growing Revenues for Intel

Revenue growth has also shown signs of life. Over the last five years, revenue has only grown at around 2%. However, in 2017, its Client Computing segment, which still accounts for over half of Intel’s revenue, has shown revenue growth at well over 2%.

Its IoT and memory solutions groups account for just over 10% of overall revenues. That’s likely to change as IoT grew by 23%, and memory solutions increased by 37% on a year-over-year basis in the third quarter. As these groups become an increasingly larger share of Intel’s revenue, overall revenue growth should grow with them.

Also, investors should not write off the PC market. This market is not going away. While PC use has experienced a reduction, even the shrinkage has begun leveling off.

The days of PCs serving as a major growth driver for INTC stock have likely ended. Still, I write my stories on a laptop computer powered by Intel chips. I’m certainly not going to write on a smartphone or tablet. Most other office workers feel the same about their work.  Hence, the PC market will still provide Intel a base of stability.

Final Thoughts on INTC Stock

Intel’s transition from the leader of a shrinking industry to being on the forefront of today’s technology has resumed. After a report of NAND memory shortages coming to an end, INTC stock corrected. However, it has now resumed its growth, and the current leadership at Intel has made it its mission to return the company to the cutting edge of the tech boom.

With a strong presence in IoT, AI, and memory solutions, it is on its way to returning to the higher growth levels of previous decades. Signs have also emerged that the PC market will stop shrinking. Best of all for investors, Wall Street has not fully caught on to Intel’s comeback yet. If one wants a low-valuation equity in a cutting-edge tech company, they should look no further than INTC stock.

As of this writing, Will Healy is long MU stock.

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Why It’s Time for Investors to Buy Intel Corporation Stock

Intel Corporation (NASDAQ:INTC) has resumed its upward move after a rough November for the chip industry. As I stated in a previous article, Intel has turned its focus away from the PC market back to the leading edge of modern technology.

INTC stock took a hit along with its competitors. However, after taking a comparatively minor hit, Intel is again poised to assume a leadership role in the technology industry and take the stock along with it.

Tech Leadership Is INTC’s Mission

The semiconductor industry as a whole took a hit when Morgan Stanley reported that the shortage in NAND memory was coming to an end.

Advanced Micro Devices, Inc. (NASDAQ:AMD), Qualcomm, Inc. (NASDAQ:QCOM), Micron Technology, Inc. (NASDAQ:MU) and Nvidia Corporation (NASDAQ:NVDA) all saw steep declines. Intel did not completely escape this trend, but the INTC stock price saw a more modest decline.

A mild reaction to bad news bodes well for investors. Moreover, Intel intends to produce the technology to back up its reputation. In an internal memo recently, CEO Brian Krzanich said he’d do whatever it takes to remain at the forefront of technology.

This INTC news reinforces the company’s commitment to compete in artificial intelligence (AI), virtual reality (VR), self-driving cars and the Internet of Things (IoT). Buying companies such as Altera, Mobileye, Movidius and Nervana reinforce this drive to keep the world running on Intel chips.

In addition, Intel also stands well-positioned financially to resume its role in the tech industry. Intel has large reserves of cash to purchase companies as well as the drive to participate in newer tech markets. These advances bring welcome news to investors, many of whom wrote off Intel as the company clinging to its PC business.

Despite the growth, the company’s price-to-earnings (PE) ratio stands at 16.5 at the current INTC stock price. Of all its major competitors, only Micron carries a lower PE. The other companies have more than double the PE if they have one at all.

Growing Revenues for Intel

Revenue growth has also shown signs of life. Over the last five years, revenue has only grown at around 2%. However, in 2017, its Client Computing segment, which still accounts for over half of Intel’s revenue, has shown revenue growth at well over 2%.

Its IoT and memory solutions groups account for just over 10% of overall revenues. That’s likely to change as IoT grew by 23%, and memory solutions increased by 37% on a year-over-year basis in the third quarter. As these groups become an increasingly larger share of Intel’s revenue, overall revenue growth should grow with them.

Also, investors should not write off the PC market. This market is not going away. While PC use has experienced a reduction, even the shrinkage has begun leveling off.

The days of PCs serving as a major growth driver for INTC stock have likely ended. Still, I write my stories on a laptop computer powered by Intel chips. I’m certainly not going to write on a smartphone or tablet. Most other office workers feel the same about their work.  Hence, the PC market will still provide Intel a base of stability.

Final Thoughts on INTC Stock

Intel’s transition from the leader of a shrinking industry to being on the forefront of today’s technology has resumed. After a report of NAND memory shortages coming to an end, INTC stock corrected. However, it has now resumed its growth, and the current leadership at Intel has made it its mission to return the company to the cutting edge of the tech boom.

With a strong presence in IoT, AI, and memory solutions, it is on its way to returning to the higher growth levels of previous decades. Signs have also emerged that the PC market will stop shrinking. Best of all for investors, Wall Street has not fully caught on to Intel’s comeback yet. If one wants a low-valuation equity in a cutting-edge tech company, they should look no further than INTC stock.

As of this writing, Will Healy is long MU stock.

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Why It’s Time for Investors to Buy Intel Corporation Stock

Intel Corporation (NASDAQ:INTC) has resumed its upward move after a rough November for the chip industry. As I stated in a previous article, Intel has turned its focus away from the PC market back to the leading edge of modern technology.

INTC stock took a hit along with its competitors. However, after taking a comparatively minor hit, Intel is again poised to assume a leadership role in the technology industry and take the stock along with it.

Tech Leadership Is INTC’s Mission

The semiconductor industry as a whole took a hit when Morgan Stanley reported that the shortage in NAND memory was coming to an end.

Advanced Micro Devices, Inc. (NASDAQ:AMD), Qualcomm, Inc. (NASDAQ:QCOM), Micron Technology, Inc. (NASDAQ:MU) and Nvidia Corporation (NASDAQ:NVDA) all saw steep declines. Intel did not completely escape this trend, but the INTC stock price saw a more modest decline.

A mild reaction to bad news bodes well for investors. Moreover, Intel intends to produce the technology to back up its reputation. In an internal memo recently, CEO Brian Krzanich said he’d do whatever it takes to remain at the forefront of technology.

This INTC news reinforces the company’s commitment to compete in artificial intelligence (AI), virtual reality (VR), self-driving cars and the Internet of Things (IoT). Buying companies such as Altera, Mobileye, Movidius and Nervana reinforce this drive to keep the world running on Intel chips.

In addition, Intel also stands well-positioned financially to resume its role in the tech industry. Intel has large reserves of cash to purchase companies as well as the drive to participate in newer tech markets. These advances bring welcome news to investors, many of whom wrote off Intel as the company clinging to its PC business.

Despite the growth, the company’s price-to-earnings (PE) ratio stands at 16.5 at the current INTC stock price. Of all its major competitors, only Micron carries a lower PE. The other companies have more than double the PE if they have one at all.

Growing Revenues for Intel

Revenue growth has also shown signs of life. Over the last five years, revenue has only grown at around 2%. However, in 2017, its Client Computing segment, which still accounts for over half of Intel’s revenue, has shown revenue growth at well over 2%.

Its IoT and memory solutions groups account for just over 10% of overall revenues. That’s likely to change as IoT grew by 23%, and memory solutions increased by 37% on a year-over-year basis in the third quarter. As these groups become an increasingly larger share of Intel’s revenue, overall revenue growth should grow with them.

Also, investors should not write off the PC market. This market is not going away. While PC use has experienced a reduction, even the shrinkage has begun leveling off.

The days of PCs serving as a major growth driver for INTC stock have likely ended. Still, I write my stories on a laptop computer powered by Intel chips. I’m certainly not going to write on a smartphone or tablet. Most other office workers feel the same about their work.  Hence, the PC market will still provide Intel a base of stability.

Final Thoughts on INTC Stock

Intel’s transition from the leader of a shrinking industry to being on the forefront of today’s technology has resumed. After a report of NAND memory shortages coming to an end, INTC stock corrected. However, it has now resumed its growth, and the current leadership at Intel has made it its mission to return the company to the cutting edge of the tech boom.

With a strong presence in IoT, AI, and memory solutions, it is on its way to returning to the higher growth levels of previous decades. Signs have also emerged that the PC market will stop shrinking. Best of all for investors, Wall Street has not fully caught on to Intel’s comeback yet. If one wants a low-valuation equity in a cutting-edge tech company, they should look no further than INTC stock.

As of this writing, Will Healy is long MU stock.

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