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The Zacks Analyst Blog Highlights: LightPath Technologies, Silicon Motion Technology, Rambus, CEVA and Celestica

·7 min read

For Immediate Release

Chicago, IL – June 15, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: LightPath Technologies, Inc. LPTH, Silicon Motion Technology Corp. SIMO, Rambus, Inc. RMBS, CEVA, Inc. CEVA and Celestica, Inc. CLS.

Here are highlights from Friday’s Analyst Blog:

Electronics Gain Steam Amid Coronavirus: 5 Stocks to Buy

Although the coronavirus (COVID-19) pandemic, which has been wreaking havoc on global trade, investments and supply chains, has severely affected most industries, the electronics industry has emerged as a deviant. In fact, the scenario seems to have favored the industry that has been gaining on increased demand for electronic goods and appliances fuelled by the coronavirus-induced lockdowns, quarantines, social distancing and shelter-in-place rules.

Electronics aids to efficiency and automation of almost any work, rendering it virtually ubiquitous in this day and age. Moreover, ongoingglobal digital wave has been driving growth for the electronic components and equipments providers.

Thereby, the industry has been benefiting from the growing proliferation of electronic devices in every major sector including technology, consumer, healthcare, transportation and communications.

Additionally, the current work-from-home and learn-from-home trends on account of the pandemic are accelerating the demand for laptops and other office equipments, and network peripherals. Hence, electronic companies offering devices that support remote working are well poised to gain from this scenario.

Furthermore, growing proliferation of electronics in healthcare to manage the COVID-19-pandemic remains a major positive. The exponential increase in the number of people contracting the deadly virus has accelerated the demand for electronic monitoring devices. Also, devices like infrared laser thermometer and thermal imaging cameras have been aiding in the frontline management of COVID-19.

Other Growth Prospects to Consider

Apart from coronavirus-led surge in demand for electronics, there are other factors that have been driving the electronic stocks.

Increasing adoption of Artificial Intelligence (AI) and industrial revolution 4.0 that focuses on interconnectivity, automation, machine learning (ML) and real time data are shaping the future growth trajectory of the electronic industry.

Robust demand in the consumer sector for connected appliances is a primary catalyst. Growing proliferation of smart TVs, high-end smartphones, AI-backed smart speakers and many more remains a tailwind.

Further, rapid adoption of IoT technology and the emergence of 5G technology present solid prospects for the electronics companies. Ongoing modification in the Internet infrastructure and evolution of smart cars & autonomous vehicle are also bolstering the demand for electronics testing equipments.

Furthermore, robust demand for collaborative robots, strong adoption of fitness and wellness trackers, and smart watches, growing proliferation of Augmented Reality (AR)/Virtual Reality (VR) devices and OLED displays are creating an extremely conducive environment of growth for electronics stocks.

Additionally, increasing usage of electrical instruments and software in the interrogation of biological properties of molecules and cells in clinical and medical science research work is another positive.

Our Picks

Per the Zacks’ proprietary methodology, stocks with the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer solid investment opportunities.

Based on this, here we pick five stocks that boast a perfect mix of elements and strong fundamentals. You can see the complete list of today’s Zacks #1 Rank stocks here.

LightPath Technologies, Inc.is riding on solid momentum across its infrared lenses utilized in temperature reading, heat imaging and sensing technologies. Moreover, the company’s thermal imaging lens that are used in medical and sensing infrared applications are witnessing strong adoption on account of the ongoing fight against COVID-19.

LightPath currently has a Zacks Rank #1 and a Growth Score of B. The consensus mark for 2020 earnings has moved north to 2 cents per share from the break-even point in the past 60 days.

Silicon Motion Technology Corp. is benefiting from improvement in demand for SSD Solutions. Further, high demand for eMMC and UFS controllers courtesy of growing adoption of mobile embedded memory controllers is expected to drive growth. Further, the company anticipates gaining from increased PC sales triggered by online learning and work-from-home wave.

Silicon Motion currently has a Zacks Rank #2 and a Growth Score of B. The consensus mark for 2020 earnings has been revised upward by 1.6% in the past 60 days to $3.18 per share.

Rambus, Inc. is gaining on the growing momentum of tokenization solutions. In addition to mobile payments and retail, the company has expanded tokenization offerings inmarkets like account-based payments, e-commerce and blockchain. Rambus has also rolled out Vaultify Trade that provides bank-grade tokenization for blockchain.

Currently, Rambus has a Zacks Rank #2 and a Growth Score of A. The consensus mark for 2020 earnings has been revised upward by 7.7% in the past 60 days to 98 cents per share.

CEVA, Inc. is riding on robust licensing environment, which is driving licensing revenues. Further, the target applications for the company’s technologies that include 5G for base station run, 5G fixed wireless access, 5G back-haul and Wi-Fi 6 for IoT devices remain promising. Moreover, its solid momentum across 5G OEM customers is a major positive.

CEVA currently has a Zacks Rank #2 and a Growth Score of A. The consensus mark for 2020 earnings has been revised upward by 7% in the past 60 days to 46 cents per share.

Celestica, Inc. is gaining on strengthening momentum in health tech space. Increasing customer wins owing to the COVID-19 scare remain noteworthy. Further, its collaboration with Medtronic to ramp up the ventilators is likely to contribute to the performance. Also, its partnership with a Canadian based medical company to produce ventilators for the Canadian government is a tailwind.

Celestica currently has a Zacks Rank #2 and a Growth Score of A. The consensus mark for 2020 earnings has been revised upward by 1.6% in the past 60 days to 62 cents per share.

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Zacks Investment Research

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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Rambus, Inc. (RMBS) : Free Stock Analysis Report
LightPath Technologies, Inc. (LPTH) : Free Stock Analysis Report
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CEVA, Inc. (CEVA) : Free Stock Analysis Report
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