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Analysts with Great Track Records Recommend These 3 Stocks

The snap reads, “May you live in interesting times. We certainly are, when it comes to stock markets. The strong bull market of 2021 turned into a full correction in early 2022, but a recovery this month has moderated year-to-date losses. The main benefit for investors is volatility; it remains to be seen if March’s gains are here to stay, or just transitory.

Regardless of the direction of the market, investors can always find a clear path in stock reviews from top analysts on the high street. They are the best stock pros, with a long-term reputation for successful stock calls. The best analysts can boast success rates of over 70% and an average return, based on the performance of the stocks they examine, of 25% or more. (See the chart of top Wall Street analysts)

So let’s start following some of the top analysts, choosing them based on their excellent track records. The TipRanks database tracks over 7,900 Wall Street analysts. We’ll look at three stocks that were recently recommended by top-ranked analysts in the field.

Ambarella (AMBA)

The first is Ambarella, one of the fabless companies in the semiconductor chip industry. This simply means that Ambarella designs its chips, promotes and markets them, and may produce a limited number of prototypes, but outsources large-scale manufacturing of silicon chips to larger chip foundries. Ambarella primarily designs and distributes chips for video applications, specializing in high resolution video compression and advanced image processing. The company’s chips are found in applications ranging from solid-state handheld vidcams and action cameras to dash cams, wearable cameras and drones, and are even found in broadcast television.

Ambarella shares fell sharply in late February, coinciding with the February 28 release of the company’s 4Q22 financial results. A look at the numbers will show us both strength and weakness, and can shed light on stock performance.

For starters, Ambarella made $90.2 million on the top and 45 cents per share on the bottom. These were significantly higher than prior year values ​​of $62.1 million and 14 cents, EPS beat expectations by more than 7%. However, the revenue forecast of $88.5 million to $91.5 million for fiscal 1Q23 was a bit light compared to the consensus expectation of $90.9 million. Management’s stated belief that margins will contract slightly heading into fiscal 2023 hasn’t helped either.

Top analyst Quinn Bolton, ranked No. 2 overall in the TipRanks database, isn’t worried and paints an optimistic picture of Ambarella’s long-term prospects.

“In the current environment for semiconductor stocks, where investors seem increasingly concerned that the semiconductor industry may enter the current bull cycle late, we believe investors are selling off quickly. companies that see an increase in channel or customer inventory levels.While we understand these concerns about semiconductor stocks that may be exposed to the broader semiconductor cycle, we believe these concerns do not are unfounded for companies such as Ambarella which are secular growth stories,” Bolton said.

Taking a closer look at the company’s outlook, Bolton writes, “Demand remains robust, CV adoption is growing in the IoT camera and automotive segments, driving a rise in mixed ASPs and the automotive pipeline is building, with a significant opportunity for L2+ vehicles.”

To that end, Bolton is pricing AMBA shares long, and its price target of $175 suggests the stock has about an 82% upside ahead of it. (To see Bolton’s track record, Click here)

Overall, this stock has recently garnered 15 analyst opinions, and they break down into 13 buys, 1 hold, and 1 sell, for a strong buy consensus. The average price target of $177.07 implies a year-over-year upside of about 84% from the stock’s current value of $96.01. (See AMBA stock forecast on TipRanks)

DZS (DZSI)

Let’s stay in the tech sector, and look at DZS. This company lives in the networking hardware niche, where it is a major provider of connectivity and broadband communication software in the global markets. DZS offers a wide range of products and services, including optical line terminals, P2P switches, residential and business gateways, Wi-Fi access points, and mobile and optical edge solutions. DZS also provides customer support centers, professional services and consulting services.

Broadband is big business, in general, and has been boosted by the corona crisis and its push towards increased remote and online activity. DZS has seen this boost stay in place over the past year. For 4Q21, the most recent report, the company posted revenue of $98 million, at the upper end of previously released guidance of $80 million to $100 million. However, the company’s adjusted EPS came in at 5 cents, missing the 9 cent forecast by 45%.

Looking ahead, however, there are reasons to believe that a broadband company like DZS can make short to medium term gains. In her recent comments in Louisiana, Vice President Harris reminded us that the administration has pledged to spend $65 billion to expand broadband access in rural and other underserved areas; this represents a real opportunity for a broadband hardware vendor.

Stifel analyst Tore Svanberg, ranked No. 20 overall, acknowledges the expanding broadband environment when he writes, “The company’s X-Haul differentiated high-speed and wireless broadband solutions are well-positioned to capitalize on increased spending for more ubiquitous broadband construction. deployments in North America and Europe as well as the continued deployment/densification of 5G network deployments.

“We expect these opportunities, along with increased geographic revenue diversification and differentiated software services from the competition, to improve margins over time and believe our estimates may prove to be conservative given our expectations for market share gains over the next few years,” the senior analyst added. .

Svanberg’s comments confirm his Buy rating, while his $20 price target implies the stock is up 50% over the next 12 months. (To see Svanberg’s track record, Click here)

Like Svanberg, other analysts are also taking a bullish approach. DZSI’s strong buy consensus rating breaks down into 3 buys and zero holds or sells. Given the average price target of $21.67, the shares could rise about 63% over the next twelve months. (See DZS stock forecast on TipRanks)

Ceva, Inc. (THIS WILL)

The latest is another semiconductor company, Ceva. Ceva focuses on DSP, or digital signal technology, and its products are an essential link in wireless technology; DSP has vital uses in consumer, industrial, IoT and mobile wireless niches. Ceva’s products have found uses in a wide range of applications, from 5G mobile infrastructure to AI networks to virtual reality headsets. In short, Ceva fits into the connection, no matter how it is made.

Ceva released strong financial results for 4Q21. In the report, released last month, the company noted that revenue hit a quarterly record, for the third quarter in a row – fourth quarter revenue was $34, which was also a record high. the company for a single quarter. Diluted non-GAAP EPS of 22 cents was up 10% from the year-ago quarter. For the full year, revenue grew from $100.3 million in 2020 to $122.7 million in 2021, a 22% gain.

Even though financial results have been strong, CEVA stock hasn’t gained much traction lately. Shares are down 27% in the past 12 months. Some analysts, however, see it as an opportunity for investors to get in at a lower cost.

Kevin Cassidy of Rosenblatt Securities is one of them. He writes of Ceva: “We see the company moving from a licensor of IP cores to a licensor of IP platforms, including the development of turnkey integrated circuits. This change increases leverage on both license and royalty revenue. CEVA’s design expertise is increasingly important as IoT products need to be connected locally or via the cellular network. Additionally, the recent decline in the stock price has provided an attractive entry point.

Cassidy, who is ranked 32nd in the TipRanks database, is establishing a buy on CEVA, along with a $60 price target that indicates around 54% upside potential this year. (To see Cassidy’s track record, Click here)

There are only three recent valuations of Ceva’s stock, but they agree: it’s a stock, it’s a buy. The average price target is $58, suggesting about a 49% upside from the stock price of $39.01. (See CEVA stock forecast on TipRanks)

To find great stock trading ideas at attractive valuations, visit TipRanks’ Best Stocks to Buy, a recently launched tool that brings together all of TipRanks’ stock information.

Warning: The views expressed in this article are solely those of the analysts featured. The Content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.