tiprankstipranks
3 Stocks from 5-Star Analyst Mark Lipacis’ Treasure Box
Stock Analysis & Ideas

3 Stocks from 5-Star Analyst Mark Lipacis’ Treasure Box

The economic upheaval marked by geopolitical uncertainties, heightened inflation, supply chain constraints, rising interest rates and muted demand has adversely impacted the capital markets so far this year.

Even the ever-reliable technology sector has not been able to save the investors. The tech-heavy Nasdaq Composite Index is down 23.3% so far this year.

In these uncertain times, it is wise to align your investment decisions with market experts to protect and grow your stock portfolio.

In our Expert Spotlight piece today, we bring to you one such top analyst from the exciting technology sector whose picks can be taken into consideration.

Mark Lipacis, who is a Managing Director at Jefferies, has almost 30 years of experience in the capital markets. Before joining Jefferies, Lipacis worked as a Managing Director at Morgan Stanley and First Vice-President at Merrill Lynch.

Lipacis has done his MBA from the Darden School of Business at the University of Virginia. He is also an alumnus of Drexel University, where he completed his master’s degree in Electrical and Electronics Engineering.

The TipRanks Star Ranking is based on an expert’s success rate, the average return generated, and statistical significance that gives higher weightage to a higher number of transactions, or recommendations, made by an expert.  

According to the same, Mark Lipacis ranks seventh among the Technology Sector analysts. Impressively, Lipacis has secured a ranking of 14 out of 7,884 analysts in the TipRanks universe.

Lipacis has a success rate of 68%, and he has generated an average return of 28.8% over the past year. Further, in terms of relative performance against the S&P 500 and the Technology sector, Lipacis’ picks have generated an alpha of 19.2% and 13.3%, respectively, over the same period.

Lipacis’ most profitable pick has been Nvidia Corporation (NVDA) between the period of February 8, 2016, and February 8, 2017, generating a whopping 341.4% return.

Let’s have a closer look and scrutinize some of Lipacis’ top picks that have helped him generate such benchmark beating returns.

Advanced Micro Devices, Inc. (NASDAQ: AMD)

Based out of Santa Clara, CA, AMD is one of the foremost names among global semiconductor companies of the world. The company develops computer processors and related technologies for business and consumer markets.

Although the share has performed worse than the Nasdaq Composite Index so far this year, falling 36.5% compared to the index’s fall of 23.3%, the company recently reported upbeat first quarter results and also raised its revenue guidance for 2022.

Revenues for the quarter came in at $5.9 billion, up 71% year-over-year. Moreover, the figure outpaced the consensus estimate of $5.52 billion. Earnings per share (EPS) witnessed a year-over-year rise of 117% to $1.13. The consensus estimate for the same stood at $0.91 per share.

Further, the company raised its revenue guidance for 2022 by about 31% from its previous guidance to $26.3 billion. The figure is above the consensus estimate of $25.15 billion.

Recently, Lipacis reiterated a Buy rating on the stock with a price target of $147, which implies upside potential of 54.2% from current levels.

Lipacis remains optimistic about the realization of the company’s synergy with Xilinx, whose acquisition it closed on February 14. Specifically, the analyst is excited about how AMD leverages Xilinx’s 5G and data center capabilities.

With a success rate of 64%, Lipacis has rated AMD stock a total of 47 times. Moreover, Lipacis has generated an average profit of 44.4% on the stock.

NXP Semiconductors N.V. (NASDAQ: NXPI)

The Netherlands-based NXP Semiconductors is a semiconductor designer and manufacturer that has operations in more than 30 countries.

Compared to the Nasdaq Composite Index, the stock has performed slightly better so far this year. While the index is down 23.3% year-to-date, the stock has declined 23.2% in the same period.

Recently, NXP Semiconductors posted mixed results for the first quarter of 2022. Revenues for the quarter came in at $3.14 billion, up 22.2% year-over-year. Further, the figure topped the consensus estimate of $3.1 billion. EPS for the quarter came in at $2.48, up 98.4% from the same quarter last year. Yet, the figure failed to surpass the consensus estimate of $3.17 per share.

Last week, Lipacis reiterated a Buy rating on the stock with a price target of $231, which implies upside potential of 30.1% from current levels.

Lipacis has rated NXPI stock a total of 24 times. With a success rate of 58%, Lipacis has generated an average profit of 7.4% on the stock.

Texas Instruments Incorporated (NASDAQ: TXN)

Based out of Dallas, TX, Texas Instruments designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. The company’s core focus is on developing analog chips and embedded processors, which account for more than 80% of its revenues.

The company’s stock has performed much better than the Nasdaq Composite Index. So far this year, shares of the company have declined just 12.2% against the index’s fall of 23.3%.

Texas Instruments recently reported strong first-quarter results. Revenues for the quarter came in at $4.91 billion, up 14% from the previous year. The figure also surpassed the consensus estimate of $4.74 billion. EPS for the quarter stood at $2.35, up 26%year-over-year, surpassing the consensus estimate of $2.18 per share.

Recently, Lipacis assigned a Buy rating on the stock with a price target of $203, implying upside potential of 21.2% from current levels.

Although the company’s second-quarter EPS guidance, which was below the consensus estimate, did not enthuse the analyst, he is of the opinion that the stock is attractively valued and can be a buying option for investors.

With a success rate of 76%, Lipacis has rated TXN a total of 34 times. Moreover, the analyst has generated an average profit of 20.9% on the stock.

Key Takeaways

Investing in the prevailing volatile global economic scenario can be an arduous task. However, Mark Lipacis’ solid track record of stock picking during various investment cycles in the attractive technology sector can be considered while making your move.

To make the process of investment decision making easier in these most uncertain of times, the TipRanks Expert Center brings together the opinions and transaction activities of the world’s top financial experts, helping investors in their investment journey.

Discover new investment ideas with data you can trust.

Read full Disclaimer & Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles