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These 2 Top Rated Stocks Could Be Long Term Winners


As we head into the holiday season and the final weeks of a tumultuous 2022, let’s get ready for the next year by looking at stock options with the potential to win. According to the data, these are Buy stocks with solid upside potential – and each received a ‘Perfect 10 Score’ from the Smart Score data tool.

The Smart Score based on TipRanks database; it organizes data on every publicly traded stock by a set of 8 factors, all known as indicators of future outperformance. The factors include well-known fundamental and technical data points, but they also add sentiment from news sources and financial bloggers, as well as buying activity from hedge funds and investors. private private. These are all factors that investors and stock analysts will use to make their decisions – but it’s rare for any bird to consider them all at once.

That’s a superior Smart Score. This tool collects and collates data, and distills it into a single-digit score for each stock, on a visual scale of 1 to 10. We opened it up. TipRanks database for details on two ‘perfect 10’ stocks with solid long-term potential; Here they are, along with comments from some of the Street’s top analysts.

GlobalFoundries, Inc. (GFS)

We’ll start in the semiconductor chip industry, a key sector in today’s digitally driven economy. GlobalFoundries is headquartered in Santa Clara, California and provides contract chip design and manufacturing services to customers in the automotive, computing, IoT, mobile, and wired industries. The company operates worldwide, through a network of offices, including chip foundries and design, R&D and manufacturing centres.

GlobalFoundries boasts a steady increase in revenue over the past year – the company is a publicly traded company for the first time – with Q3 2022 results of $2.1 billion with a 22% year-over-year increase. . This is the company’s record quarterly revenue result and reflects growing demand for semiconductor chips. The company’s net income also hit a record, at $336 million, and GFS ended the third quarter with $3.5 billion in cash and other liquid assets on hand.

Earnings grew even faster than sales. At the bottom line, GlobalFoundries reported Q3 diluted EPS of 67 cents, up 15% from the 58 cents reported in Q2 – and nearly 10 times higher than the 7 cents reported in the previous quarter. Looking ahead, GlobalFoundries expects net sales for Q4 2022 to exceed $2 billion again and earnings per share to range between $1.16 and $1. 39 dollars.

‘Perfect 10’ Smart Score on GlobalFoundries found support from the simple moving average, an important technical factor based on the ratio between the 20-day sma and the 200-day sma – which is positive for GFS stock. Financial bloggers, who are usually a fickle bunch, give the stock 100% coverage, while hedgers bought 4.8 million shares in the previously reported quarter.

5 star analyst Chris Caso, by Credit Suisse, pointing to a long-term case for buying into GFS, writes, “…we believe the limited supply and higher capital intensity in legacy node production is due to structure rather than cyclicality , mainly due to the lack of used equipment. provided this market segment in the past. GFS also benefits from the industry’s desire to diversify outside of Taiwan and will benefit from government incentives in its existing manufacturing hubs in Europe and the US.”

Seen from this stance, Caso sees reason to give the stock a Better rating (Buy) and his price target, at $78, suggests a 30% upside in the stock over the next year. (To see Caso’s achievements, click here.)

Recent 9 GFS analyst reviews scaled from 8 to 1 in favor of Buy over Hold, for a Strong Buy consensus rating. The stock is currently trading for $60.03, and its median price target is $76.22, implying a 27% gain over a one-year term. (See GlobalFoundries stock forecast at TipRanks.)

Ciena (FIRE)

For the second stock on our list, we’ll be turning to the East Coast, where Maryland-based Ciena is active in networking, providing services, software, and systems to global customers. – including big names like AT&T, Sprint and Verizon. One of Ciena’s key strengths is its intellectual property, backed by a portfolio containing more than 2,000 patents. The company’s products are used in intelligent automation, routing and switching, as well as domain management and control.

CIEN stock is down more than 37% year-to-date – but earlier this month the share price jumped nearly 20% when its Q4 financial report for FY22 showed better-than-estimated revenue and earnings. Although both upper and lower earnings fell year-on-year, investors were pleased the company beat forecasts.

On the top line, revenue came in at $971 million, 14% higher than forecast and 11% higher than fiscal Q3 results. Turning to the bottom line, adjusted EPS was reported at 61 cents per share – much higher than the 8 cent expected.

For the full fiscal year 2022, Ciena posted revenue of more than $3.63 billion, up slightly from the $3.62 billion reported in fiscal 2021. The results for the recently ended fiscal year were ended. Driven by solid results in the converged optical package platform, reaching $2.38 billion in sales, or 65% of total annual revenue.

switch to Smart Score, we find that CIEN stock has a high ratio on several factors. Recent stock news sentiment is 100% positive, as is news from financial bloggers. Among the hedge funds tracked by TipRanks, holdings at CIEN grew by 1.2 million in the past quarter. And finally, crowd wisdom is rated as ‘very positive’ here, as individual investors’ holdings in CIEN have increased both last month and last week. It all adds up to the ‘Perfect 10’.

Connect the dots on Ciena, Cowen . 5-star analyst Paul Silverstein paints an optimistic picture, saying of the company, “We see CIEN as the communications equipment supplier that makes the best use of the optical upgrade cycle, where service providers are moving significantly spend their optical capital on next-generation optical systems… We expect Ciena to continue to benefit as service provider optical capital expenditures continue to shift towards world-class optical platforms. this next generation to close the gap between bandwidth consumption growth and the corresponding lack of growth in services revenue.”

Quantifying this outlook, Silverstein rates the stock as Outperform (Buy) while setting a price target of $76, implying a 57% upside potential over the next 12 months. (To see Silverstein’s achievements, click here.)

Tech stocks tend to get a lot of attention from Street analysts, and Ciena is no exception – the stock has 13 recent analyst ratings, 10 of which are Buys. against 3 Hold reviews, for a Strong Buy consensus rating. The stock has an average price target of $63.75, showing a 32% gain in one year from its current share price of $48.42. (See Ciena’s stock forecast at TipRanks.)

Keep up with the Best TipRanks smart score must provide

Disclaimer: The opinions expressed in this article are those of prominent analysts only. Content is used for informational purposes only. It is very important that you do your own analysis before making any investment.

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