The Zacks Analyst Blog Highlights Silicon Motion Technology, NVIDIA, Allegro MicroSystems and Ambarella
For Immediate Release
Chicago, IL – January 30, 2024 – 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: Silicon Motion Technology SIMO, NVIDIA Corp. NVDA, Allegro MicroSystems ALGM and Ambarella AMBA.
Here are highlights from Monday’s Analyst Blog:
4 Semiconductor Stocks Poised to Beat Estimates This Earnings Season
The overall earnings for the semiconductor industry this earnings season is expected to be better than the year-ago quarter. After a challenging period marked by economic headwinds and disruptions in the supply chain, semiconductor stocks appear to be on the brink of a significant comeback, fueled by a steady increase in sales.
The semiconductor market grappled with challenges arising from pandemic-induced disruptions in the supply chain and the Federal Reserve's stringent monetary policies, which subdued demand and led to a decline in sales. However, with the easing of inflationary pressures and a gradual recovery in demand, the industry has been on an upward trajectory since the second quarter of 2023.
The advent of generative AI has further attracted investments. The technology has already proven beneficial across a variety of industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy and utilities and video game development.
The growing proliferation of generative AI has boosted the demand for chips, benefiting semiconductor sales. According to the latest data released by the Semiconductor Industry Association, global semiconductor sales grew 5.3% to $48 billion in November 2023, marking the first year-over-year increase since August 2022. This year-over-year rise also came after eight consecutive months of sequential growth, signifying a strong recovery.
How to Make the Right Choice?
With the presence of several industry participants, finding the right tech stocks with the potential to beat on earnings can be daunting. However, our proprietary methodology makes this task fairly simple.
You could narrow down your choices by looking at stocks that have the perfect combination of two key elements — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP is our proprietary methodology for determining stocks that have maximum chances of beating estimates in their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Our research shows that for stocks with this favorable mix of ingredients, the odds of a positive earnings surprise are as high as 70%.
4 Semiconductor Stocks That Match the Criteria
Silicon Motion Technology has an Earnings ESP of +4.92% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.
The company is scheduled to report its fourth-quarter 2023 results on Feb 6. The Zacks Consensus Estimate for earnings has increased 5 cents upward to 76 cents per share over the past 30 days.
NVIDIA Corp. has an Earnings ESP of +3.68% and currently has a Zacks Rank of 2.
The company is scheduled to report its fourth-quarter fiscal 2024 results on Feb 21. The Zacks Consensus Estimate for earnings has increased by a penny to $4.49 per share over the past 30 days.
Allegro MicroSystems currently has an Earnings ESP of +1.16% and a Zacks Rank #3.
The company is set to report third-quarter fiscal 2024 results on Feb 1. The consensus mark for earnings has been steady at 29 cents per share over the past 60 days.
Ambarella is expected to report fourth-quarter fiscal 2024 results on Feb 27. The company has an Earnings ESP of +0.60% and a Zacks Rank of 3.
The consensus estimate for the bottom line is pegged at a loss of 33 cents per share, 5 cents narrower than the loss of 38 cents expected 60 days ago.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report
Ambarella, Inc. (AMBA) : Free Stock Analysis Report
Allegro MicroSystems, Inc. (ALGM) : Free Stock Analysis Report
