Shares of Enovix (NASDAQ:ENVX), which designs and manufactures next-gen 3D silicon lithium-ion batteries, should be on your radar. Its low stock price and strong growth potential make it attractive. More reasons to keep an eye on ENVX stock include a special presentation by its Executive Chairman T.J. Rodgers on January 3 and a demonstration of its breakthrough battery tech at the Consumer Electronics Show on January 5 and 6.
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ENVX stock dropped over 54% in 2022. However, this slump in price could be an opportunity to own shares of a company whose battery tech has broad applications, including consumer electronics and EVs (Electric Vehicles). Further, any favorable announcement by the company at the upcoming events could give ENVX stock a significant lift.
While ENVX has a use case in premium consumer electronics, including wearables, mobile phones, and computing, the company is focused on expanding its end-market applications.
It has opportunities in new categories, including medical devices and augmented reality. Furthermore, in the EV (Electric Vehicle) space, ENVX is pursuing partnership strategies with automotive OEMs (Original Equipment Manufacturers).
Along with its growing TAM (total addressable market), the commercialization of its products is a positive development. Furthermore, ENVX recently announced the appointment of Dr. Raj Talluri as the new President and CEO.
He joins ENVX from Micron Technology (NASDAQ:MU), where he served as an SVP (Senior Vice President) and GM (General Manager) of MU’s Mobile unit.
Oppenheimer analyst Colin Rusch is optimistic about Talluri’s appointment and bullish about ENVX’s prospects.
Is ENVX a Good Stock to Buy?
Including Rusch, ENVX stock has received six unanimous Buy recommendations from analysts. It sports a Strong Buy consensus rating on TipRanks. Meanwhile, these analysts’ average price target of $23.30 implies 87.3% upside potential from current levels.
Along with analysts, ENVX has a positive signal from hedge fund managers, who bought 251.3K shares last quarter. Overall, it carries an Outperform Smart Score of eight on TipRanks.
Bottom Line
The strong application of ENVX’s battery technology in different spheres and the growing TAM are positive. Meanwhile, the recent pullback in its price provides a good buying opportunity. However, the uncertain economic environment could play spoilsport and limit the recovery in its stock price.
