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2 Picks from Top Analyst for Smart Returns
Stock Analysis & Ideas

2 Picks from Top Analyst for Smart Returns

Markets all over the world have been journeying through sharp crests and troughs ever since the pandemic began. Then came the Russian invasion of Ukraine, and then arrived the Federal Reserve’s first round of interest rate hikes, wreaking havoc with technology stock prices.

Currently, concerns of a possible recession looming on the horizon have cropped up.

Moreover, the persisting chip shortage issue that has been playing spoil-sport for more than a year now, is expected to remain in our lives for some more time. This does not bode well for the technology sector, especially industries like semiconductors, computers, and automotive.

In uncertain times like these, retail investors are facing the dilemma of where to invest their money to minimize the impact of any untoward economic event.

It is during such times that it becomes crucial to make informed decisions, and closely follow what market experts say. Wall Street analysts keep track of the financials, fundamentals, and developments of companies and sectors in their coverage; participate in company conferences and earnings calls; and host interviews with top company executives; in order to get deeper insights and projections.

In today’s Expert Spotlight piece, we will celebrate one of the top minds of Wall Street, whose stock recommendations have mostly been accurate.

Our Analyst’s Standing among Other Experts

Our expert of the day, Ross Seymore, is the managing director of Deutsche Bank. After working as an equity research analyst at First of Michigan for four years, he joined Deutsche Bank in 1999, and has been covering semiconductor stocks ever since.

This five-star rated analyst enjoys a No. 109 ranking among technology sector analysts covered on TipRanks. Moreover, Seymore ranks 16th among the 7,899 analysts on TipRanks, and ranks 20th among 17,660 overall experts in the TipRanks universe.

The TipRanks Star Ranking, which takes into account an expert’s success rate, the average returns generated, and statistical significance that improves with the increase in the number of transactions or recommendations made by the expert, keeps Seymore in the top rung of the list.

The analyst has a success rate of a whopping 77%, with an average return of 25.8% over the past year. Furthermore, in the past year, his picks generated an alpha of 13.8% over the S&P 500 index, and 8.6% over the technology sector performance.

Seymore’s most profitable stock recommendation has been Ambarella (AMBA) in the year between November 5, 2012 and November 5, 2013, during which the stock had gained 135%.

Let’s look at two of Seymore’s top picks that have helped him generate benchmark-beating returns.

Qualcom

Qualcom (NASDAQ: QCOM) is a leading manufacturer and seller of wireless telecommunications products and services for devices including mobile, network equipment, and connected devices.

The company recently reported its Q2 2022 results, wherein both the top and bottom lines beat expectations, and improved year-over-year. Its wireless and high-performance, low-power processor technologies continue to witness solid demand, which is a boon for the business.

The traction in 5G is expected to bode well for the company’s revenues.

Qualcomm is set to acquire Veoneer from SSW Partners for $4.5 billion, giving Qualcomm a firmer footing in the growing market for driver-assistance technology, augmenting its automotive chip-making business.

Following the impressive earnings amid chip-shortages and other headwinds, Seymore reiterated a Buy rating on the QCOM stock, with a price target of $190.

His conviction on the stock can be trusted because eight out of 11 of his ratings on this stock have proven to be profitable in the past. Moreover, the analyst’s average return per rating on QCOM has been an impressive 19%.

Wall Street is fairly optimistic about the stock with a Moderate Buy consensus rating based on 12 Buys and seven Holds. The average QCOM price target is $195.94.

Marvell

Marvell (NASDAQ: MRVL) is another semiconductor player that has been on Seymore’s radar, returning 11% gains on an average per rating on the stock.

The demand for Marvell’s storage and networking chips is high in the 5G infrastructure and data-center end markets, which is helping the company thrive. Moreover, the company acquired Inphi Corporation last year, which is boosting its top line.

Marvell’s strong cash-generating capability has helped it return cash to shareholders through regular quarterly dividends and share repurchases.

Recently, Seymore reiterated a Buy rating on the stock, but lowered the price target to $80 from $90 to reflect the “purgatory” stage of the semiconductor cycle. Nonetheless, he is fundamentally optimistic about strength in revenues and earnings, with strong demand exceeding supply.

That said, 50% Seymore’s ratings on the stock have been profitable, making his recommendation on Marvell fairly trustworthy.

Coming to Wall Street sentiments, Marvell enjoys a Strong Buy consensus rating based on 13 Buys and three Holds. The average MRVL price target is $91.20.

Parting Thoughts

Technology is the future, and if one invests prudently, it has the potential to generate superlative returns over the long term.

In this regard, the expertise and past record of Seymore show that his recommendations can be taken as sound advice.

Our Expert Center brings together the recommendations and transaction activities of the world’s top finance experts, which can have a strong hand in the success of your investment decisions.

Discover new investment ideas with data you can trust

Read full Disclaimer & Disclosure.

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