2 months ago
Morgan Stanley has cut Novo Nordisk A/S (NYSE:NVO) to Underweight on September 11, 2026. Semaglutide, the underlying molecule for Wegovy and Ozempic, generates roughly 75% of 2026 revenue. Morgan Stanley models that it will still represent 59% of total sales when its patent protection expires in 2031. And according to the firm, the valuation does not price in the impact it has on Novo's terminal value. The stock, currently trading at 10.6x earnings and down 33% from its 52-week high, slipped another 2% following the call. At this point, the question isn't about whether the patent cliff is real or not, but whether the 10x multiple reflects an actual bargain.
Semaglutide loses exclusivity in Europe in 2031 and the US in 2032. And Morgan Stanley believes Novo's oral-obesity business, projected to reach $10 billion by 2031, could not offset the pricing collapse after the arrival of generics. Growth decelerates to a 4% compound rate between 2027 and 2030. If the deceleration continues, it will justify 10x earnings as a fair price instead of a cheap one.
The 10.6x multiple already prices aggressive pessimism into a market leader of one of the fastest-growing drug classes in history. Morgan Stanley fueled the pessimism by discounting a 2031 cliff five years earlier. However, pharmaceutical patent expirations frequently face extensions and prove difficult to time. Second, the ***** umption that oral obesity treatments cannot offset patent losses relies on oral semaglutide being the bridge. But Novo's next-generation portfolio, including CagriSema and amycretin, offers a significant defense against the patent cliff. This remains unproven, however, specifically after CagriSema's earlier weight-loss data failed to impress, yet Morgan Stanley's terminal-value model discounts this pipeline almost entirely. The company is also expanding its franchise. On September 7, the STEP Young trial hit its endpoint in children aged six to twelve, strengthening the base its successors inherit.
The smart money is leaning in. As per the Insider Monkey database, 59 hedge funds held NVO in the second quarter of 2026, up from 55 in the first, indicating a slight increase in the modest institutional interest in the stock. Short interest on the ADR is negligible at about 0.7%. The positioning reflects a beaten-down value stock quietly seeing institutional accumulation while Wall Street turns increasingly bearish.
#semaglutide #oral
Semaglutide loses exclusivity in Europe in 2031 and the US in 2032. And Morgan Stanley believes Novo's oral-obesity business, projected to reach $10 billion by 2031, could not offset the pricing collapse after the arrival of generics. Growth decelerates to a 4% compound rate between 2027 and 2030. If the deceleration continues, it will justify 10x earnings as a fair price instead of a cheap one.
The 10.6x multiple already prices aggressive pessimism into a market leader of one of the fastest-growing drug classes in history. Morgan Stanley fueled the pessimism by discounting a 2031 cliff five years earlier. However, pharmaceutical patent expirations frequently face extensions and prove difficult to time. Second, the ***** umption that oral obesity treatments cannot offset patent losses relies on oral semaglutide being the bridge. But Novo's next-generation portfolio, including CagriSema and amycretin, offers a significant defense against the patent cliff. This remains unproven, however, specifically after CagriSema's earlier weight-loss data failed to impress, yet Morgan Stanley's terminal-value model discounts this pipeline almost entirely. The company is also expanding its franchise. On September 7, the STEP Young trial hit its endpoint in children aged six to twelve, strengthening the base its successors inherit.
The smart money is leaning in. As per the Insider Monkey database, 59 hedge funds held NVO in the second quarter of 2026, up from 55 in the first, indicating a slight increase in the modest institutional interest in the stock. Short interest on the ADR is negligible at about 0.7%. The positioning reflects a beaten-down value stock quietly seeing institutional accumulation while Wall Street turns increasingly bearish.
#semaglutide #oral
2 months ago
With Agentic AI accelerating CPU server chip demand, Wall Street believes Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the primary beneficiaries taking share. On September 9, Piper Sandler ******* yst David O'Connor initiated coverage on AMD (NASDAQ: AMD) with an Overweight rating and a $600 price target.
Analyst O'Connor estimates revenue for FY26-30 to grow at a 50% CAGR, while earnings per share compound at 65%.
The server-CPU share gain story for AMD is simple, Agentic AI is expected to increase demand for server CPUs. This is because the workloads require continuous control-plane activity, API calls, database queries and tool execution. AMD will benefit from this use based on its high-frequency and general-purpose processors with its Venice portfolio.
Even AMD executives have highlighted that AMD is now transitioning from merely a semiconductor supplier to a provider of rack-scale systems and software. It is also positioning its server CPU portfolio for increased demand from agentic AI workloads.
The company reported second-quarter revenue of $11.5 billion, beating ******* yst estimates. This includes $6.7 billion from data centers, up 107% year-over-year. The segment performance was attributed to EPYC processors and Instinct GPUs.
#workloads
Analyst O'Connor estimates revenue for FY26-30 to grow at a 50% CAGR, while earnings per share compound at 65%.
The server-CPU share gain story for AMD is simple, Agentic AI is expected to increase demand for server CPUs. This is because the workloads require continuous control-plane activity, API calls, database queries and tool execution. AMD will benefit from this use based on its high-frequency and general-purpose processors with its Venice portfolio.
Even AMD executives have highlighted that AMD is now transitioning from merely a semiconductor supplier to a provider of rack-scale systems and software. It is also positioning its server CPU portfolio for increased demand from agentic AI workloads.
The company reported second-quarter revenue of $11.5 billion, beating ******* yst estimates. This includes $6.7 billion from data centers, up 107% year-over-year. The segment performance was attributed to EPYC processors and Instinct GPUs.
#workloads
2 months ago
On September 2, Shell Offshore, a subsidiary of Shell plc (NYSE:SHEL), announced the acquisition of a 30% working interest in Conifer, an exploration prospect operated by BP p.l.c. (NYSE:BP) in the U.S. Gulf of Mexico. Located offshore within Keathley Canyon near BP's Kaskida host development, Conifer represents a significant deep-water play. BP retains operatorship, with the initial exploration well expected to spud in 2027. While the deal reflects shared risk and capital efficiency in high-cost offshore basins, comparing the two giants' Q2 2026 earnings shows that Shell is currently executing from a position of superior financial strength.
Shell plc (NYSE:SHEL) delivered an exceptionally clean Q2 2026 report. Adjusted earnings reached $9.8 billion, driven by record upstream production in Brazil and record refinery utilization, which offset Middle East operational outages. Cash flow from operations (CFFO) came in at $21.4 billion, supported by higher realized prices and a $3.4 billion working capital inflow. Shell maintained strict capital discipline, reiterating its full-year capex outlook of $24 billion–$26 billion while completing $5.8 billion in structural cost reductions since 2022. Balance sheet health remains robust, with gearing at 19% and net debt at $42 billion ($12 billion excluding leases).
BP p.l.c. (NYSE:BP) also turned in a solid Q2 recovery, but its headline metrics lag behind Shell's scale. BP reported underlying replacement cost profit (its proxy for net income) of $5.7 billion, a 78% quarter-over-quarter rebound fueled by strong refining margins and oil trading. Operating cash flow reached $10.9 billion after absorbing a $1.0 billion working capital build. BP used strong cash generation to trim net debt down to $22.25 billion, while guiding full-year capex to $13.5 billion–$14.0 billion.
Although BP raised its quarterly dividend by 4% to 8.66 cents, Shell's cash engine allowed it to announce its 19th consecutive quarter of at least $3 billion in share buybacks, distributing 44% of CFFO over the trailing 12 months.
Shell's bull case centers on superior capital allocation, aggressive portfolio high-grading, including the ARC Resources acquisition targeting a 4% production CAGR through 2030, and consistent share buybacks. The bear case focuses on execution risks in integrated gas and LNG amid volatile market conditions, as well as the challenges of integrating large-scale acquisitions.
#cost
Shell plc (NYSE:SHEL) delivered an exceptionally clean Q2 2026 report. Adjusted earnings reached $9.8 billion, driven by record upstream production in Brazil and record refinery utilization, which offset Middle East operational outages. Cash flow from operations (CFFO) came in at $21.4 billion, supported by higher realized prices and a $3.4 billion working capital inflow. Shell maintained strict capital discipline, reiterating its full-year capex outlook of $24 billion–$26 billion while completing $5.8 billion in structural cost reductions since 2022. Balance sheet health remains robust, with gearing at 19% and net debt at $42 billion ($12 billion excluding leases).
BP p.l.c. (NYSE:BP) also turned in a solid Q2 recovery, but its headline metrics lag behind Shell's scale. BP reported underlying replacement cost profit (its proxy for net income) of $5.7 billion, a 78% quarter-over-quarter rebound fueled by strong refining margins and oil trading. Operating cash flow reached $10.9 billion after absorbing a $1.0 billion working capital build. BP used strong cash generation to trim net debt down to $22.25 billion, while guiding full-year capex to $13.5 billion–$14.0 billion.
Although BP raised its quarterly dividend by 4% to 8.66 cents, Shell's cash engine allowed it to announce its 19th consecutive quarter of at least $3 billion in share buybacks, distributing 44% of CFFO over the trailing 12 months.
Shell's bull case centers on superior capital allocation, aggressive portfolio high-grading, including the ARC Resources acquisition targeting a 4% production CAGR through 2030, and consistent share buybacks. The bear case focuses on execution risks in integrated gas and LNG amid volatile market conditions, as well as the challenges of integrating large-scale acquisitions.
#cost
2 months ago
If you hold Pfizer (PFE) or Zoetis (ZTS), you hold the same idea: a branded medicine becomes a standard of care and keeps earning for years, in people or in animals. That is where it stops. Pfizer is buying replacements for older drugs losing exclusivity. Zoetis is cutting its effective price to keep the franchises it has. Same bet, two opposite defenses.
Pfizer lifted the midpoint of its 2026 revenue guidance by $500 million while cutting its COVID-19 revenue expectation to about $4 billion from about $5 billion. The rest of the company covered that gap: excluding COVID products, the underlying business grew 5% operationally in the second quarter of 2026, with Eliquis and Padcev among the drivers management named.
Zoetis cut its 2026 outlook and now expects revenue to decline 1% to 3% on an organic operational basis. Management said sales trends through July had not yet indicated market stabilization. Pfizer's raise rests on business it can already see. Zoetis has yet to see visibility on market stabilization.
Pfizer is buying growth and cutting cost, and expects about $9.7 billion in total net savings through 2029. What that funds is an aim, not a guide: a risk-adjusted high single-digit revenue CAGR from year-end 2028 through year-end 2033.
The pipeline behind that aim is expensive to get wrong. A Phase III lung cancer trial that missed its primary endpoint and, to a lesser extent, the removal of revenue projections for Oxbryta led to $4.3 billion of noncash intangible **** et impairments recorded in the second quarter of 2026. While an unadjusted price-to-EBIT comparison puts Pfizer at 23.9 against Zoetis at 9.2, aligning the two on operating income brings them to 9.7x and 9.0x, largely erasing the paying-up premium.
#pfizer #covid
Pfizer lifted the midpoint of its 2026 revenue guidance by $500 million while cutting its COVID-19 revenue expectation to about $4 billion from about $5 billion. The rest of the company covered that gap: excluding COVID products, the underlying business grew 5% operationally in the second quarter of 2026, with Eliquis and Padcev among the drivers management named.
Zoetis cut its 2026 outlook and now expects revenue to decline 1% to 3% on an organic operational basis. Management said sales trends through July had not yet indicated market stabilization. Pfizer's raise rests on business it can already see. Zoetis has yet to see visibility on market stabilization.
Pfizer is buying growth and cutting cost, and expects about $9.7 billion in total net savings through 2029. What that funds is an aim, not a guide: a risk-adjusted high single-digit revenue CAGR from year-end 2028 through year-end 2033.
The pipeline behind that aim is expensive to get wrong. A Phase III lung cancer trial that missed its primary endpoint and, to a lesser extent, the removal of revenue projections for Oxbryta led to $4.3 billion of noncash intangible **** et impairments recorded in the second quarter of 2026. While an unadjusted price-to-EBIT comparison puts Pfizer at 23.9 against Zoetis at 9.2, aligning the two on operating income brings them to 9.7x and 9.0x, largely erasing the paying-up premium.
#pfizer #covid
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2 months ago
Medtronic (NYSE: MDT), one of the world's largest medical device makers, was once considered a stable blue chip stock. But over the past five years, it has declined by more than 30% due to supply chain constraints, higher costs, quality control issues, and competitive pressure. However, Medtronic's stock is worth buying again for four simple reasons.
In fiscal 2026 (which ended this April), Medtronic's revenue grew 8.4% (and 5.8% organically) to $36.4 billion, marking its strongest top-line growth in ten years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That acceleration was driven by 9.3% organic growth in its cardiovascular business, which accounted for more than 38% of its enterprise revenue. All of its other segments (neuroscience, medical surgical, and diabetes) also grew organically.
Medtronic expects its organic revenue to rise 7.25%-7.75% in fiscal 2027, representing another multi-year high and easily exceeding its historical average of around 5%. Once again, that growth will be led by its rising sales of cardiovascular devices. From fiscal 2026 to fiscal 2029, ****** ysts expect its reported revenue to grow at a 5% CAGR.
#fiscal #NVIDIA
In fiscal 2026 (which ended this April), Medtronic's revenue grew 8.4% (and 5.8% organically) to $36.4 billion, marking its strongest top-line growth in ten years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That acceleration was driven by 9.3% organic growth in its cardiovascular business, which accounted for more than 38% of its enterprise revenue. All of its other segments (neuroscience, medical surgical, and diabetes) also grew organically.
Medtronic expects its organic revenue to rise 7.25%-7.75% in fiscal 2027, representing another multi-year high and easily exceeding its historical average of around 5%. Once again, that growth will be led by its rising sales of cardiovascular devices. From fiscal 2026 to fiscal 2029, ****** ysts expect its reported revenue to grow at a 5% CAGR.
#fiscal #NVIDIA
2 months ago
AI is soaking up the headlines these days, but the cloud, while older news, remains a powerful force in the tech industry. Cloud services, such as AWS and Azure, are true giants, with many millions of subscribers and tens of billions in revenue. At the same time, the cloud, like AI, has been powering the rapid expansion of data centers.
Some numbers tell the tale. In 2025, per Markets and Markets, the cloud computing sector was valued at nearly $1.295 trillion. That's impressive, but it's also growing quickly, and is expected to reach $2.281 trillion as early as 2030, for a 12% CAGR through the forecast period.
Growth on that scale always generates solid investment opportunities, and the eye will naturally be drawn to the cloud giants. But Wall Street's **** ysts are reminding us of a basic truth in the stock game: that there are sound investments at every scale. They're saying to look under the radar, where we can find overlooked stocks that offer plenty of potential.
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#trillion #scale #wall
Some numbers tell the tale. In 2025, per Markets and Markets, the cloud computing sector was valued at nearly $1.295 trillion. That's impressive, but it's also growing quickly, and is expected to reach $2.281 trillion as early as 2030, for a 12% CAGR through the forecast period.
Growth on that scale always generates solid investment opportunities, and the eye will naturally be drawn to the cloud giants. But Wall Street's **** ysts are reminding us of a basic truth in the stock game: that there are sound investments at every scale. They're saying to look under the radar, where we can find overlooked stocks that offer plenty of potential.
Promotion
55% Off TipRanks
#trillion #scale #wall
2 months ago
Interested in Daktronics, Inc.? Here are five stocks we like better.
Daktronics delivered a strong fiscal Q1: Revenue rose 7.1% year over year, operating income increased 7.2% to $24.9 million, and EPS climbed 21.2% to $0.40, the company's highest quarterly EPS in three years. Gross margin expanded 80 basis points to 30.5%.
Demand remains solid despite lower bookings: Backlog stood at $311 million, exceeding $300 million for the sixth consecutive quarter. Management attributed weaker bookings primarily to project timing and expects several substantial purchase orders later in Q2, with revenue contributions beginning mostly in Q3.
The company is investing while managing cost pressures: Daktronics plans to increase annual capital expenditures to about $20 million for automation and manufacturing capacity, while implementing price increases and procurement savings to offset rising input costs. It reaffirmed fiscal 2028 targets for 7%–10% revenue CAGR, 10%–12% operating margins and 17%–20% ROIC.
This Is Why Daktronics Fell 40% In One Day
#revenue
Daktronics delivered a strong fiscal Q1: Revenue rose 7.1% year over year, operating income increased 7.2% to $24.9 million, and EPS climbed 21.2% to $0.40, the company's highest quarterly EPS in three years. Gross margin expanded 80 basis points to 30.5%.
Demand remains solid despite lower bookings: Backlog stood at $311 million, exceeding $300 million for the sixth consecutive quarter. Management attributed weaker bookings primarily to project timing and expects several substantial purchase orders later in Q2, with revenue contributions beginning mostly in Q3.
The company is investing while managing cost pressures: Daktronics plans to increase annual capital expenditures to about $20 million for automation and manufacturing capacity, while implementing price increases and procurement savings to offset rising input costs. It reaffirmed fiscal 2028 targets for 7%–10% revenue CAGR, 10%–12% operating margins and 17%–20% ROIC.
This Is Why Daktronics Fell 40% In One Day
#revenue
2 months ago
Cybersecurity has been a hot industry for several years, with Grand View Research projecting an 11.9% compound annual growth rate (CAGR) through 2033. However, artificial intelligence (AI) is heating up the need for cybersecurity.
Each AI agent and model needs cybersecurity. Furthermore, hackers can use AI to hack more targets, and cybersecurity companies use AI to deter those attackers.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Cloudflare (NYSE: NET) and Palo Alto Networks (NASDAQ: PANW) are at the forefront of this opportunity. They both generate annual recurring revenue from leading companies, but there are a few things to consider when comparing these stocks.
Palo Alto Networks is the most established cybersecurity platform. It earned $3 billion in its fiscal 2026 third quarter, ended April 30, while Cloudflare only generated $696.1 million in the second quarter. It is also profitable, while Cloudflare is still burning through cash. Although its fiscal 2026 third quarter wasn't profitable, that was mainly due to merger and acquisition (M&A) expenses. It had been profitable in the first and second quarters of its fiscal 2026.
#signal #fiscal #quarter #networks
Each AI agent and model needs cybersecurity. Furthermore, hackers can use AI to hack more targets, and cybersecurity companies use AI to deter those attackers.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Cloudflare (NYSE: NET) and Palo Alto Networks (NASDAQ: PANW) are at the forefront of this opportunity. They both generate annual recurring revenue from leading companies, but there are a few things to consider when comparing these stocks.
Palo Alto Networks is the most established cybersecurity platform. It earned $3 billion in its fiscal 2026 third quarter, ended April 30, while Cloudflare only generated $696.1 million in the second quarter. It is also profitable, while Cloudflare is still burning through cash. Although its fiscal 2026 third quarter wasn't profitable, that was mainly due to merger and acquisition (M&A) expenses. It had been profitable in the first and second quarters of its fiscal 2026.
#signal #fiscal #quarter #networks
3 months ago
Long Cast Advisers, an independent registered investment adviser, released its Q2 2026 investor letter. A copy can be downloaded here. The firm reported strong earnings in the second quarter, with results improving 20%, bringing year-to-date returns to +19%. While performance trailed the Russell 2000 and iShares US MicroCap ETF, it remained well ahead of the iShares SmallCap EAFE (ex-N. Am) ETF. Since inception in 2015, ***** ulative returns stand at 343% (15% CAGR), reflecting the firm's strategy of concentrated, patient investments in small and micro‑cap companies. The firm remains cautious in this environment, emphasizing patience and endurance while avoiding margin and volatility. In addition, please check the firm's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Long Cast Advisers highlighted Pro-Dex, Inc. (NASDAQ:PDEX). Pro-Dex, Inc. (NASDAQ:PDEX) is a global medical device company that designs, develops, manufactures, and sells powered surgical instruments for medical device OEMs. On August 7, 2026, Pro-Dex, Inc. (NASDAQ:PDEX) closed at $65.56 per share. The one-month return of Pro-Dex, Inc. (NASDAQ:PDEX) was 7.88%, and its shares gained 72.87% over the past 52 weeks. Pro-Dex, Inc. (NASDAQ:PDEX) has a market capitalization of $209.32 million.
Long Cast Advisers stated the following regarding Pro-Dex, Inc. (NASDAQ:PDEX) in its Q2 2026 investor letter:
"In 2Q26, Pro-Dex, Inc. (NASDAQ:PDEX), PESI and MTRX were the largest contributors. The PDEX pitch offered an attempt to quantify the anticipated incremental benefits to operations if Zimmer succeeds with the mBos robot commercialization (a corrected version of the slide is below). The milestones, prices and margins are all derived from public filings and we ***** ume four effectors per system sale, as an informed estimate.
Zimmer's purchase of Monogram last year included "contingent valuation rights" (CVRs) that pay out $3.41 / share in each year from 2028 to 2030 that mBos gross revenues exceed certain hurdles. Based on these estimates, we calculated the number of systems needed to achieve those revenues, and it triangulates to a capital sale in the range of ~$1M per machine, in line with the cost of Stryker's Mako platform. Stryker sold 860 units in its first three years, so the forecast 609 units to trigger the final CVR seems achievable. And even if the timing is wrong or our estimates imprecise, as long as the direction is right - and Zimmer is putting significant resources behind the launch - once the system launches, PDEX could experience an exceptional transformation in operating cash flow that would justify a substantially higher corporate value. This is why it remains a top position."
#long #cast #investor
In its Q2 2026 investor letter, Long Cast Advisers highlighted Pro-Dex, Inc. (NASDAQ:PDEX). Pro-Dex, Inc. (NASDAQ:PDEX) is a global medical device company that designs, develops, manufactures, and sells powered surgical instruments for medical device OEMs. On August 7, 2026, Pro-Dex, Inc. (NASDAQ:PDEX) closed at $65.56 per share. The one-month return of Pro-Dex, Inc. (NASDAQ:PDEX) was 7.88%, and its shares gained 72.87% over the past 52 weeks. Pro-Dex, Inc. (NASDAQ:PDEX) has a market capitalization of $209.32 million.
Long Cast Advisers stated the following regarding Pro-Dex, Inc. (NASDAQ:PDEX) in its Q2 2026 investor letter:
"In 2Q26, Pro-Dex, Inc. (NASDAQ:PDEX), PESI and MTRX were the largest contributors. The PDEX pitch offered an attempt to quantify the anticipated incremental benefits to operations if Zimmer succeeds with the mBos robot commercialization (a corrected version of the slide is below). The milestones, prices and margins are all derived from public filings and we ***** ume four effectors per system sale, as an informed estimate.
Zimmer's purchase of Monogram last year included "contingent valuation rights" (CVRs) that pay out $3.41 / share in each year from 2028 to 2030 that mBos gross revenues exceed certain hurdles. Based on these estimates, we calculated the number of systems needed to achieve those revenues, and it triangulates to a capital sale in the range of ~$1M per machine, in line with the cost of Stryker's Mako platform. Stryker sold 860 units in its first three years, so the forecast 609 units to trigger the final CVR seems achievable. And even if the timing is wrong or our estimates imprecise, as long as the direction is right - and Zimmer is putting significant resources behind the launch - once the system launches, PDEX could experience an exceptional transformation in operating cash flow that would justify a substantially higher corporate value. This is why it remains a top position."
#long #cast #investor
3 months ago
Long Cast Advisers, an independent registered investment adviser, released its Q2 2026 investor letter. A copy can be downloaded here. The firm reported strong earnings in the second quarter, with results improving 20%, bringing year-to-date returns to +19%. While performance trailed the Russell 2000 and iShares US MicroCap ETF, it remained well ahead of the iShares SmallCap EAFE (ex-N. Am) ETF. Since inception in 2015, **** ulative returns stand at 343% (15% CAGR), reflecting the firm's strategy of concentrated, patient investments in small and micro‑cap companies. The firm remains cautious in this environment, emphasizing patience and endurance while avoiding margin and volatility. In addition, please check the firm's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Long Cast Advisers highlighted Perma-Fix Environmental Services, Inc. (NASDAQ:PESI). Headquartered in Atlanta, Georgia, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is an environmental and technology know-how company. The one-month return of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) was 22.95%, and its shares gained 50.00% over the last 52 weeks. On August 07, 2026, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) stock closed at $18.08 per share, with a market capitalization of $383.36 million.
Long Cast Advisers stated the following regarding Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) in its Q2 2026 investor letter:
"In 2Q26, PDEX, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) and MTRX were the largest contributors. Among our other large holdings, PESI recently preannounced 2Q26 earnings indicating continued weak profitability but strong backlog growth on expanding processing at Hanford. There is potential for significantly more waste volumes if a decision is made to grout (embed in concrete) up to 9M gallons of low-level tank waste by 2030. This recent GAO report illustrates how large that opportunity could be and how favorable the government is in pursuing it."
Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 10 hedge fund portfolios held Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) at the end of the first quarter, compared to 11 in the previous quarter. While we acknowledge the potential of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
#Services #letter
In its Q2 2026 investor letter, Long Cast Advisers highlighted Perma-Fix Environmental Services, Inc. (NASDAQ:PESI). Headquartered in Atlanta, Georgia, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is an environmental and technology know-how company. The one-month return of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) was 22.95%, and its shares gained 50.00% over the last 52 weeks. On August 07, 2026, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) stock closed at $18.08 per share, with a market capitalization of $383.36 million.
Long Cast Advisers stated the following regarding Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) in its Q2 2026 investor letter:
"In 2Q26, PDEX, Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) and MTRX were the largest contributors. Among our other large holdings, PESI recently preannounced 2Q26 earnings indicating continued weak profitability but strong backlog growth on expanding processing at Hanford. There is potential for significantly more waste volumes if a decision is made to grout (embed in concrete) up to 9M gallons of low-level tank waste by 2030. This recent GAO report illustrates how large that opportunity could be and how favorable the government is in pursuing it."
Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 10 hedge fund portfolios held Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) at the end of the first quarter, compared to 11 in the previous quarter. While we acknowledge the potential of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
#Services #letter
3 months ago
Long Cast Advisers, an independent registered investment adviser, released its Q2 2026 investor letter. A copy can be downloaded here. The firm reported strong earnings in the second quarter, with results improving 20%, bringing year-to-date returns to +19%. While performance trailed the Russell 2000 and iShares US MicroCap ETF, it remained well ahead of the iShares SmallCap EAFE (ex-N. Am) ETF. Since inception in 2015, ****** ulative returns stand at 343% (15% CAGR), reflecting the firm's strategy of concentrated, patient investments in small and micro‑cap companies. The firm remains cautious in this environment, emphasizing patience and endurance while avoiding margin and volatility. In addition, please check the firm's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Long Cast Advisers highlighted NRC Health (NASDAQ:NRC). NRC Health (NASDAQ:NRC) provides ****** ytics and insights to enhance the patient and employee experience of healthcare organizations in the United States. NRC Health (NASDAQ:NRC) was formerly known as National Research Corporation and changed its name in April 2026. On August 7, 2026, NRC Health (NASDAQ:NRC) closed at $20.34 per share, reflecting a market capitalization of $449.9 million and a year‑to‑date gain of 9.30%. NRC Health (NASDAQ:NRC) posted a one‑month return of ‑6.02%, while its shares gained 35.95% over the past 52 weeks.
Long Cast Advisers stated the following regarding NRC Health (NASDAQ:NRC) in its Q2 2026 investor letter:
"On NRC Health (NASDAQ:NRC), our newest investment, I discussed the company's evolution from owner / operator to professionally led management team, and the expected benefits from putting a growth focused, incentivized and entrepreneurial executive suite behind this strong and recognizable brand, in a business with strong FCF generation and in a market where the two leading competitors just merged in a PE backed $6.5B deal.
Quantitative evidence that supports our optimism includes the recently announced largest contract in company history, leading to the highest 12-mos backlog in history. Deferred revs are also growing and this typically leads sales. Furthermore, management indicated that the second year of the aforementioned contract is materially larger than the first, which infers that in one year's time, 12-mos backlog could be even larger, and with capacity to do more. We continue to add opportunistically."
#NASDAQ #letter #investment
In its Q2 2026 investor letter, Long Cast Advisers highlighted NRC Health (NASDAQ:NRC). NRC Health (NASDAQ:NRC) provides ****** ytics and insights to enhance the patient and employee experience of healthcare organizations in the United States. NRC Health (NASDAQ:NRC) was formerly known as National Research Corporation and changed its name in April 2026. On August 7, 2026, NRC Health (NASDAQ:NRC) closed at $20.34 per share, reflecting a market capitalization of $449.9 million and a year‑to‑date gain of 9.30%. NRC Health (NASDAQ:NRC) posted a one‑month return of ‑6.02%, while its shares gained 35.95% over the past 52 weeks.
Long Cast Advisers stated the following regarding NRC Health (NASDAQ:NRC) in its Q2 2026 investor letter:
"On NRC Health (NASDAQ:NRC), our newest investment, I discussed the company's evolution from owner / operator to professionally led management team, and the expected benefits from putting a growth focused, incentivized and entrepreneurial executive suite behind this strong and recognizable brand, in a business with strong FCF generation and in a market where the two leading competitors just merged in a PE backed $6.5B deal.
Quantitative evidence that supports our optimism includes the recently announced largest contract in company history, leading to the highest 12-mos backlog in history. Deferred revs are also growing and this typically leads sales. Furthermore, management indicated that the second year of the aforementioned contract is materially larger than the first, which infers that in one year's time, 12-mos backlog could be even larger, and with capacity to do more. We continue to add opportunistically."
#NASDAQ #letter #investment
3 months ago
Shares of Medtronic (NYSE: MDT), one of the world's largest medical device makers, have declined by more than 30% over the past five years. Higher costs, supply chain bottlenecks, quality control issues, and competitive pressure in surgical robotics all weighed on its stock.
Yet Wall Street remains bullish on Medtronic, with an average price target of $98.44 and a top target of $121. I believe it could rise more than 40% from its current price of $86 and hit that high-end target by the end of this year for a few simple reasons.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Back in March, Medtronic spun off its diabetes unit as MiniMed (NASDAQ: MMED) to streamline its business. It's also restructuring its business to expand its higher-margin cardiovascular and neuroscience portfolios and to integrate more AI features into its surgical planning products.
In fiscal 2026 (which ended in April), Medtronic's revenue grew 8.4% to $36.4 billion (or 5.8% organically) and marked its strongest top-line growth in ten years. From fiscal 2026 to fiscal 2029, **** ysts expect its revenue and EPS to grow at CAGRs of 5% and 13%, respectively.
#NVIDIA #years #surgical
Yet Wall Street remains bullish on Medtronic, with an average price target of $98.44 and a top target of $121. I believe it could rise more than 40% from its current price of $86 and hit that high-end target by the end of this year for a few simple reasons.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Back in March, Medtronic spun off its diabetes unit as MiniMed (NASDAQ: MMED) to streamline its business. It's also restructuring its business to expand its higher-margin cardiovascular and neuroscience portfolios and to integrate more AI features into its surgical planning products.
In fiscal 2026 (which ended in April), Medtronic's revenue grew 8.4% to $36.4 billion (or 5.8% organically) and marked its strongest top-line growth in ten years. From fiscal 2026 to fiscal 2029, **** ysts expect its revenue and EPS to grow at CAGRs of 5% and 13%, respectively.
#NVIDIA #years #surgical
3 months ago
After a year at the helm, Novo Nordisk's CEO Maziar Mike Doustdar's task of closing the gap to pacesetter Eli Lilly doesn't look to be getting any easier.
Doustdar joined Novo at the height of spiralling erosion to rivals in the obesity and type 2 diabetes market segments. While the Danish drugmaker has since gained approval for oral Wegovy, a drug that set a record-breaking pace for a glucagon-like peptide-1 receptor agonist (GLP-1RA) at launch, other pipeline products have had mixed clinical results. Earlier this week, cardiovascular disease drug ziltivekimab failed a Phase III trial, while CagriSema fell short in a non-inferiority trial comparing it to Lilly's tirzepatide.
Coupled with ongoing sales decline, dealmaking presents an obvious avenue in which to boost pipeline offerings. Novo has already said it is actively targeting bolt-on acquisitions, with Doustdar reiterating during the Q2 earnings call that large-scale, transformative deals are still a way off.
"I'm very proud of our internal R&D and pipeline, but no company has a monopoly on good ideas. I've also said we are in every data room to try and see who else has a better idea, who else can give us ******* ets that we can bolt on, and complement what [our internal R&D teams] are doing," Doustdar said.
"I'm a person who never starts with a no to one day [being able to conduct transformative M&A], but you have to be in a very different situation than Novo Nordisk is in today," he added.
#pipeline
Doustdar joined Novo at the height of spiralling erosion to rivals in the obesity and type 2 diabetes market segments. While the Danish drugmaker has since gained approval for oral Wegovy, a drug that set a record-breaking pace for a glucagon-like peptide-1 receptor agonist (GLP-1RA) at launch, other pipeline products have had mixed clinical results. Earlier this week, cardiovascular disease drug ziltivekimab failed a Phase III trial, while CagriSema fell short in a non-inferiority trial comparing it to Lilly's tirzepatide.
Coupled with ongoing sales decline, dealmaking presents an obvious avenue in which to boost pipeline offerings. Novo has already said it is actively targeting bolt-on acquisitions, with Doustdar reiterating during the Q2 earnings call that large-scale, transformative deals are still a way off.
"I'm very proud of our internal R&D and pipeline, but no company has a monopoly on good ideas. I've also said we are in every data room to try and see who else has a better idea, who else can give us ******* ets that we can bolt on, and complement what [our internal R&D teams] are doing," Doustdar said.
"I'm a person who never starts with a no to one day [being able to conduct transformative M&A], but you have to be in a very different situation than Novo Nordisk is in today," he added.
#pipeline
3 months ago
On April 2, 2024, General Electric (NYSE: GE) spun off its energy division as GE Vernova (NYSE: GEV). It started trading at $143 per share on that first day, but eventually dropped to its all-time low of $122.46 on April 5. If you had invested $5,000 in GE Vernova's stock at that price, your investment would be worth more than $40,400 today.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
GE Vernova operates three core businesses: Power (55% of its 2025 orders), Electrification (33%), and Wind (13%). Since its market debut, the Power and Electrification segments have grown rapidly to meet the demands of the power-hungry cloud, data center, and AI markets. That growth offset the softness of its Wind segment, which grappled with supply chain issues.
GE Vernova's orders rose 7% organically in 2024, then accelerated to 34% growth in 2025. From 2025 to 2028, ***** ysts expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 17% and 60%, respectively.
Therefore, GE Vernova's stock soared because it was a well-balanced play on the expanding AI market. With an enterprise value of $252 billion, it isn't cheap at 40 times this year's adjusted EBITDA -- but its robust growth rates could support that premium valuation.
#NVIDIA #april
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
GE Vernova operates three core businesses: Power (55% of its 2025 orders), Electrification (33%), and Wind (13%). Since its market debut, the Power and Electrification segments have grown rapidly to meet the demands of the power-hungry cloud, data center, and AI markets. That growth offset the softness of its Wind segment, which grappled with supply chain issues.
GE Vernova's orders rose 7% organically in 2024, then accelerated to 34% growth in 2025. From 2025 to 2028, ***** ysts expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 17% and 60%, respectively.
Therefore, GE Vernova's stock soared because it was a well-balanced play on the expanding AI market. With an enterprise value of $252 billion, it isn't cheap at 40 times this year's adjusted EBITDA -- but its robust growth rates could support that premium valuation.
#NVIDIA #april
3 months ago
Our **** ysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Delivered 10% organic constant currency revenue growth, marking the tenth consecutive quarter of high single-digit growth or better.
U.S. Financial Services outperformance was driven by share gains and innovation rather than underlying market volumes, growing at a 9% CAGR excluding mortgage.
Strategic diversification has resulted in over one-third of Financial Services revenue coming from alternative data and non-credit solutions like Trusted Call.
Platform modernization reached a milestone with 60% of U.S. match activity and 30% of online customers now migrated to the OneTru platform.
#cagr
Delivered 10% organic constant currency revenue growth, marking the tenth consecutive quarter of high single-digit growth or better.
U.S. Financial Services outperformance was driven by share gains and innovation rather than underlying market volumes, growing at a 9% CAGR excluding mortgage.
Strategic diversification has resulted in over one-third of Financial Services revenue coming from alternative data and non-credit solutions like Trusted Call.
Platform modernization reached a milestone with 60% of U.S. match activity and 30% of online customers now migrated to the OneTru platform.
#cagr
4 months ago
Visa (V) trades at $360.57 per share on a $651.9B market cap and 29.3x trailing earnings. Under a conservative 3-year scenario, the math points to roughly 42% of upside. Revenue compounding does most of the work in our scenario. Here is the picture the math sits on top of:
Where V Stands Today
Valuation: P/E of 29.3 versus a 3-year average of 29.8 and a 3-year high of 33.9.
Revenue: Revenue grew 14.4% over the last twelve months, with a 3-year CAGR of 11.6%.
Net Margin: Running at 52% LTM, against a 3-year average of 53% and a 3-year peak of 55%.
#Visa
Where V Stands Today
Valuation: P/E of 29.3 versus a 3-year average of 29.8 and a 3-year high of 33.9.
Revenue: Revenue grew 14.4% over the last twelve months, with a 3-year CAGR of 11.6%.
Net Margin: Running at 52% LTM, against a 3-year average of 53% and a 3-year peak of 55%.
#Visa
4 months ago
Magellan Investment Partners, an Australian investment management company, released its second-quarter 2026 investor letter for "Magellan Global Opportunities Fund". A copy of the letter can be downloaded here. The Fund invests in companies with sustainable competitive advantages that generate returns exceeding their cost of capital over time. In Q2, the global stock market rose 13.8%, reversing the stagflation narrative, with energy prices declining after US–Iran tensions eased. Focus shifted to chip stocks and data centre beneficiaries. Regionally, markets' performance reflected the tech rebound and energy decline. Macro backdrop improved in the quarter with relief from avoiding a severe energy shock, though growth and inflation concerns kept central banks cautious. The portfolio gained 4.3% in the quarter, lagging the 12.5% benchmark rise, driven by bubble-like conditions in semiconductors and data centre supply chains. For insights into their key selections for 2026, please review the Strategy's top five holdings.
In its Q2 2026 investor letter, Magellan Global Opportunities Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a top contributor to performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world's leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. On July 15, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $419.48 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -9.23%, and its shares gained 70.80% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.18 trillion.
Magellan Global Opportunities Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2026 investor update:
"The largest contributors to the portfolio's performance over the quarter were Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), UnitedHealth Group and Adidas. TSMC is a beneficiary of both AI chip investment and the data centre expansion cycle. In response to strong AI chip demand, TSMC raised its 5-year revenue growth CAGR by 5 points to 25% pa. While the growth will be supported by a large step up in FY26 capex (benefiting semi cap vendors like ASML), TSMC also raised its long-term gross margin guidance, signalling confidence in its ability to drive productivity, cost efficiencies and pricing power."
In its Q2 2026 investor letter, Magellan Global Opportunities Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a top contributor to performance. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world's leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. On July 15, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $419.48 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -9.23%, and its shares gained 70.80% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.18 trillion.
Magellan Global Opportunities Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2026 investor update:
"The largest contributors to the portfolio's performance over the quarter were Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), UnitedHealth Group and Adidas. TSMC is a beneficiary of both AI chip investment and the data centre expansion cycle. In response to strong AI chip demand, TSMC raised its 5-year revenue growth CAGR by 5 points to 25% pa. While the growth will be supported by a large step up in FY26 capex (benefiting semi cap vendors like ASML), TSMC also raised its long-term gross margin guidance, signalling confidence in its ability to drive productivity, cost efficiencies and pricing power."
4 months ago
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 153%. On July 6, William Blair **** yst Sebastien Naji named Credo his top semiconductor pick for the next six months. That followed several constructive June calls. Evercore ISI **** yst Mark Lipacis initiated coverage on June 22 with an Outperform rating and a $325 target, describing Credo as an AI-connectivity leader moving from a mainly copper portfolio toward a combined copper-and-optical offering.
The same day, Stifel **** yst Tore Svanberg maintained a Buy rating and raised his target to $350 from $250 after management meetings, citing the company's vertically integrated, system-level approach across both technologies. Bank of America kept Buy on June 26. The common thread is that larger AI clusters require more high-speed, energy-efficient connections. Credo's active electrical cables, digital signal processors and optical products address that need. Risks include customer concentration, rapid interface transitions, and expectations that already **** ume substantial growth.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed connectivity solutions, including active electrical cables, digital signal processors, retimers, SerDes chiplets, and optical components for hyperscale, cloud, and AI networks.
While we acknowledge the potential of CRDO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
The same day, Stifel **** yst Tore Svanberg maintained a Buy rating and raised his target to $350 from $250 after management meetings, citing the company's vertically integrated, system-level approach across both technologies. Bank of America kept Buy on June 26. The common thread is that larger AI clusters require more high-speed, energy-efficient connections. Credo's active electrical cables, digital signal processors and optical products address that need. Risks include customer concentration, rapid interface transitions, and expectations that already **** ume substantial growth.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) provides high-speed connectivity solutions, including active electrical cables, digital signal processors, retimers, SerDes chiplets, and optical components for hyperscale, cloud, and AI networks.
While we acknowledge the potential of CRDO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
4 months ago
Seagate Technology Holdings plc (NASDAQ:STX) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 151%. On July 1, Bank of America ***** yst Wamsi Mohan reiterated a Buy rating and raised his price target to $1,150 from $1,000. Mohan's thesis pointed to improving fundamentals, sustained cloud demand and greater discipline in adding hard-drive capacity. He also highlighted build-to-order contracts that support measured price increases, along with the transition to higher-capacity heat-assisted magnetic recording drives.
Carol Gauthier/Shutterstock.com
Those factors could improve revenue visibility, margins, and free cash flow if customer demand remains firm. The AI link is primarily storage economics: training and inference create large datasets that cloud operators must retain at scale, where high-capacity hard drives remain cost-effective. The principal risk is cyclical. Strong pricing can encourage future supply, while customers can pause purchases after capacity additions. The current ***** yst case rests on disciplined industry behavior and a durable data-center demand cycle, not demand alone.
Seagate Technology Holdings plc (NASDAQ:STX) develops mass-capacity data-storage products and systems, including hard disk drives and enterprise storage used by cloud, edge, consumer, and AI data-center customers.
While we acknowledge the risk and potential of STX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STX and that has 10,000% upside potential, check out our report about the cheapest AI stock.
Carol Gauthier/Shutterstock.com
Those factors could improve revenue visibility, margins, and free cash flow if customer demand remains firm. The AI link is primarily storage economics: training and inference create large datasets that cloud operators must retain at scale, where high-capacity hard drives remain cost-effective. The principal risk is cyclical. Strong pricing can encourage future supply, while customers can pause purchases after capacity additions. The current ***** yst case rests on disciplined industry behavior and a durable data-center demand cycle, not demand alone.
Seagate Technology Holdings plc (NASDAQ:STX) develops mass-capacity data-storage products and systems, including hard disk drives and enterprise storage used by cloud, edge, consumer, and AI data-center customers.
While we acknowledge the risk and potential of STX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STX and that has 10,000% upside potential, check out our report about the cheapest AI stock.
4 months ago
Applied Optoelectronics, Inc. (NASDAQ:AAOI) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 144.7%.
On June 21, Rosenblatt Securities ****** yst Michael Genovese reiterated a Buy rating and maintained a $220 price target. The firm's documented thesis has centered on Amazon-related 800G revenue, potential Oracle qualifications and a product mix spanning 100G, 400G, 800G and 1.6T connectivity. That view is supported by more than $324 million of reported orders for 800G and 1.6T products tied to hyperscale demand. That backlog makes execution the focus. Orders and customer qualifications must convert into shipments, while higher volumes need to improve profitability and cash flow. AAOI's vertically integrated manufacturing model can help with cost and supply control, yet rapid capacity expansion creates its own operational burden.
Customer concentration is another important consideration, as a delayed qualification or a changed deployment schedule can materially affect results. Rosenblatt's reiteration indicates confidence in the optical ramp, while the order base provides a measurable benchmark for subsequent delivery.
Applied Optoelectronics, Inc. (NASDAQ:AAOI) designs and manufactures optical networking products, including lasers, transceivers and related equipment for internet data centers, cable television networks, telecommunications and fiber-access markets.
While we acknowledge the risk and potential of AAOI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAOI and that has 10,000% upside potential, check out our report about the cheapest AI stock.
On June 21, Rosenblatt Securities ****** yst Michael Genovese reiterated a Buy rating and maintained a $220 price target. The firm's documented thesis has centered on Amazon-related 800G revenue, potential Oracle qualifications and a product mix spanning 100G, 400G, 800G and 1.6T connectivity. That view is supported by more than $324 million of reported orders for 800G and 1.6T products tied to hyperscale demand. That backlog makes execution the focus. Orders and customer qualifications must convert into shipments, while higher volumes need to improve profitability and cash flow. AAOI's vertically integrated manufacturing model can help with cost and supply control, yet rapid capacity expansion creates its own operational burden.
Customer concentration is another important consideration, as a delayed qualification or a changed deployment schedule can materially affect results. Rosenblatt's reiteration indicates confidence in the optical ramp, while the order base provides a measurable benchmark for subsequent delivery.
Applied Optoelectronics, Inc. (NASDAQ:AAOI) designs and manufactures optical networking products, including lasers, transceivers and related equipment for internet data centers, cable television networks, telecommunications and fiber-access markets.
While we acknowledge the risk and potential of AAOI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAOI and that has 10,000% upside potential, check out our report about the cheapest AI stock.
4 months ago
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 143.31%. On June 11, JPMorgan **** yst Samik Chatterjee reiterated an Overweight rating and maintained a $1,130 price target, arguing that the recent pullback in optical-networking stocks had created a buying opportunity.
Chatterjee said Lumentum shares had fallen about 15% from their early-June high as investors worried about limited summer catalysts and possible delays in co-packaged optics adoption. He pushed back on those concerns, citing supply-chain checks indicating that Nvidia's large-scale CPO rollout remained on track and may be ahead of schedule. JPMorgan also pointed to growing interest from cloud-service providers and other customers, which could broaden demand beyond Nvidia.
Co-packaged optics places optical engines close to switch chips to increase bandwidth while reducing power consumption in large AI systems. JPMorgan viewed Lumentum's valuation of roughly 25 times estimated 2028 earnings as reasonable, given projected annual earnings growth above 40%. The thesis still depends on deployment schedules, customer concentration and Lumentum's ability to convert product demand into sustained shipments and earnings growth.
Lumentum Holdings Inc. (NASDAQ:LITE) develops optical and photonic technologies for AI and cloud networking, telecommunications, industrial manufacturing and sensing, including lasers, components, modules and optical subsystems.
While we acknowledge the risk and potential of LITE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LITE and that has 10,000% upside potential, check out our report about the cheapest AI stock.
Chatterjee said Lumentum shares had fallen about 15% from their early-June high as investors worried about limited summer catalysts and possible delays in co-packaged optics adoption. He pushed back on those concerns, citing supply-chain checks indicating that Nvidia's large-scale CPO rollout remained on track and may be ahead of schedule. JPMorgan also pointed to growing interest from cloud-service providers and other customers, which could broaden demand beyond Nvidia.
Co-packaged optics places optical engines close to switch chips to increase bandwidth while reducing power consumption in large AI systems. JPMorgan viewed Lumentum's valuation of roughly 25 times estimated 2028 earnings as reasonable, given projected annual earnings growth above 40%. The thesis still depends on deployment schedules, customer concentration and Lumentum's ability to convert product demand into sustained shipments and earnings growth.
Lumentum Holdings Inc. (NASDAQ:LITE) develops optical and photonic technologies for AI and cloud networking, telecommunications, industrial manufacturing and sensing, including lasers, components, modules and optical subsystems.
While we acknowledge the risk and potential of LITE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LITE and that has 10,000% upside potential, check out our report about the cheapest AI stock.
4 months ago
Vertiv Holdings Co (NYSE:VRT) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 134%. On June 12, Vertiv completed its acquisition of ThermoKey, an Italian provider of heat-rejection and heat-exchange equipment. The transaction adds dry coolers, heat exchangers, and systems compatible with low-global-warming-potential and natural refrigerants. It also expands manufacturing capacity in Europe, the Middle East, and Africa. That is relevant to AI infrastructure because rising rack densities are making cooling design a facility-level constraint, not merely an accessory to server deployment.
Vertiv has already used ThermoKey technology in selected products, which may reduce integration risk. The combination also extends Vertiv's coverage across the thermal chain, allowing it to address heat removal beyond the immediate rack. The investor question is whether the acquired capacity can be converted into profitable growth without weakening execution. The deal appears strategically aligned with demand for denser computing, but returns will still depend on project timing, pricing and disciplined integration.
Vertiv Holdings Co (NYSE:VRT) supplies critical digital infrastructure, including power management, thermal management, racks, monitoring systems, and lifecycle services for data centers, communications networks, and commercial and industrial facilities.
While we acknowledge the risk and potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT and that has 10,000% upside potential, check out our report about the cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Vertiv has already used ThermoKey technology in selected products, which may reduce integration risk. The combination also extends Vertiv's coverage across the thermal chain, allowing it to address heat removal beyond the immediate rack. The investor question is whether the acquired capacity can be converted into profitable growth without weakening execution. The deal appears strategically aligned with demand for denser computing, but returns will still depend on project timing, pricing and disciplined integration.
Vertiv Holdings Co (NYSE:VRT) supplies critical digital infrastructure, including power management, thermal management, racks, monitoring systems, and lifecycle services for data centers, communications networks, and commercial and industrial facilities.
While we acknowledge the risk and potential of VRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRT and that has 10,000% upside potential, check out our report about the cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
4 months ago
Ciena Corporation (NYSE:CIEN) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 120.4%. On June 8, UBS reiterated its Hold rating on the stock and raised its price target to $508 from $285. The action followed Ciena's fiscal second-quarter report, where revenue rose 40% year over year to $1.57 billion, and adjusted earnings came in ahead of FactSet estimates, MarketWatch reported. UBS ******* yst David Vogt's caution centered on expectations rather than the headline numbers.
Carol Gauthier/Shutterstock.com
He wrote that the market had been pricing in a "more material beat and raise" than Ciena delivered. Ciena still raised its fiscal 2026 revenue outlook to $6.2 billion to $6.4 billion and guided fiscal third-quarter revenue above Wall Street estimates. The gap between strong results and an even stronger setup explains the neutral stance: Ciena remained tied to AI-driven optical networking demand, but the stock had already climbed sharply into the report. Ciena also said its high-speed connectivity strategy across wide-area networks and data centers was aligned with multi-year AI demand.
Ciena Corporation (NYSE:CIEN) provides networking systems, services, and software used by communications service providers, cloud operators, governments, and enterprises to move, manage, and optimize high-bandwidth network traffic.
While we acknowledge the risk and potential of CIEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CIEN and that has 10,000% upside potential, check out our report about the cheapest AI stock.
Carol Gauthier/Shutterstock.com
He wrote that the market had been pricing in a "more material beat and raise" than Ciena delivered. Ciena still raised its fiscal 2026 revenue outlook to $6.2 billion to $6.4 billion and guided fiscal third-quarter revenue above Wall Street estimates. The gap between strong results and an even stronger setup explains the neutral stance: Ciena remained tied to AI-driven optical networking demand, but the stock had already climbed sharply into the report. Ciena also said its high-speed connectivity strategy across wide-area networks and data centers was aligned with multi-year AI demand.
Ciena Corporation (NYSE:CIEN) provides networking systems, services, and software used by communications service providers, cloud operators, governments, and enterprises to move, manage, and optimize high-bandwidth network traffic.
While we acknowledge the risk and potential of CIEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CIEN and that has 10,000% upside potential, check out our report about the cheapest AI stock.
4 months ago
No pair dominated ETF.com's comparison tool in the first half of 2026 more than the VanEck Semiconductor ETF (SMH) against the iShares Semiconductor ETF (SOXX), with 6,743 views. With the AI infrastructure buildout continuing to fuel explosive demand for chips, it's little surprise investors want to know which semiconductor ETF belongs in their portfolio.
On the surface, these two funds look nearly identical — same sector, overlapping holdings, nearly identical expense ratios (SMH at 0.35%, SOXX at 0.34%). But dig into the details and meaningful differences emerge.
The biggest distinction is portfolio construction. SMH holds just 26 stocks, making it a highly concentrated bet on the sector's largest players. NVIDIA alone represents 17.55% of the fund. SOXX, by contrast, holds 31 names and applies a more equal-weight tilt — NVIDIA sits at just 6.81% there, while Micron Technology and AMD each carry larger weights than in SMH.
That difference in construction has translated into divergent performance. Over the trailing year through mid-2026, SOXX returned 169.68% compared to SMH's 135.91% — a stunning gap driven in part by SOXX's heavier exposure to names that outperformed. Over three years, however, SMH holds the edge, returning 63.44% against SOXX's 56.95% CAGR.
Size is also a factor: SMH is the larger fund at $74.4B in AUM versus SOXX's $45.9B, and SMH's average daily dollar volume of $6.1B gives it a slight liquidity advantage. For investors who want pure, high-octane semiconductor exposure in a liquid wrapper, this debate isn't going away anytime soon.
On the surface, these two funds look nearly identical — same sector, overlapping holdings, nearly identical expense ratios (SMH at 0.35%, SOXX at 0.34%). But dig into the details and meaningful differences emerge.
The biggest distinction is portfolio construction. SMH holds just 26 stocks, making it a highly concentrated bet on the sector's largest players. NVIDIA alone represents 17.55% of the fund. SOXX, by contrast, holds 31 names and applies a more equal-weight tilt — NVIDIA sits at just 6.81% there, while Micron Technology and AMD each carry larger weights than in SMH.
That difference in construction has translated into divergent performance. Over the trailing year through mid-2026, SOXX returned 169.68% compared to SMH's 135.91% — a stunning gap driven in part by SOXX's heavier exposure to names that outperformed. Over three years, however, SMH holds the edge, returning 63.44% against SOXX's 56.95% CAGR.
Size is also a factor: SMH is the larger fund at $74.4B in AUM versus SOXX's $45.9B, and SMH's average daily dollar volume of $6.1B gives it a slight liquidity advantage. For investors who want pure, high-octane semiconductor exposure in a liquid wrapper, this debate isn't going away anytime soon.
4 months ago
We just covered The Next SanDisk: 9 Potential Breakout AI Stocks You Shouldn't Miss. Cerebras Systems (NASDAQ:CBRS) ranks #9 (see The Next SanDisk: 5 Potential Breakout AI Stocks You Shouldn't Miss).
Number of Hedge Fund Investors: N/A
Cerebras Systems (NASDAQ:CBRS) is an AI chipmaker that sells Wafer-Scale Engine (WSE-3) processors. Its customers are OpenAI and Amazon Web Services, with potential for enterprise customers down the line.
Wall Street turned bullish on the company because it makes the industry's only commercially deployed wafer-scale AI chip. Bulls point to the company's massive $24.6 billion backlog, which is 48 times Cerebras Systems (NASDAQ:CBRS) FY25 revenue of $510 million. The backlog is supported by a $20 billion three-year deal with OpenAI announced in January 2026. In that deal, OpenAI will deploy approximately 750 megawatts of Cerebras compute capacity through 2028, with an option for an additional 1.25 gigawatts. The company also has a collaboration with AWS for disaggregated inference announced in March 2026.
Cerebras Systems (NASDAQ:CBRS) expects revenue growth with a 120% forward topline CAGR through fiscal 2028 from fiscal 2025. This is based entirely on the OpenAI and AWS commitments. Morgan Stanley recently started coverage of the stock with a $250 price target and called it one of the most differentiated AI infrastructure companies with a first-mover advantage against Nvidia. UBS came out with a $300 price target and a Buy rating. Needham also came out with $300 and a Buy rating.
Number of Hedge Fund Investors: N/A
Cerebras Systems (NASDAQ:CBRS) is an AI chipmaker that sells Wafer-Scale Engine (WSE-3) processors. Its customers are OpenAI and Amazon Web Services, with potential for enterprise customers down the line.
Wall Street turned bullish on the company because it makes the industry's only commercially deployed wafer-scale AI chip. Bulls point to the company's massive $24.6 billion backlog, which is 48 times Cerebras Systems (NASDAQ:CBRS) FY25 revenue of $510 million. The backlog is supported by a $20 billion three-year deal with OpenAI announced in January 2026. In that deal, OpenAI will deploy approximately 750 megawatts of Cerebras compute capacity through 2028, with an option for an additional 1.25 gigawatts. The company also has a collaboration with AWS for disaggregated inference announced in March 2026.
Cerebras Systems (NASDAQ:CBRS) expects revenue growth with a 120% forward topline CAGR through fiscal 2028 from fiscal 2025. This is based entirely on the OpenAI and AWS commitments. Morgan Stanley recently started coverage of the stock with a $250 price target and called it one of the most differentiated AI infrastructure companies with a first-mover advantage against Nvidia. UBS came out with a $300 price target and a Buy rating. Needham also came out with $300 and a Buy rating.
4 months ago
With an annual dividend yield of 2.84%, American Electric Power Company, Inc. (NASDAQ:AEP) is included among the 12 Best S&P 500 Stocks to Buy for Dividends.
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the nation's largest electricity producers with approximately 29 GW of diverse generating capacity. The company operates and maintains the nation's largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states.
On June 18, Ladenburg trimmed its price target on American Electric Power Company, Inc. (NASDAQ:AEP) from $148 to $143, but maintained its 'Buy' rating on the shares. The lowered target still indicates an upside potential of almost 10% from the current price level.
To keep up with the soaring load demand, American Electric Power Company, Inc. (NASDAQ:AEP) recently increased its 5-year capital plan to $78 billion, up from $72 billion previously. In its last earnings call, the company reaffirmed its operating earnings guidance of $6.15 to $6.45 per share for full-year 2026, indicating a YoY growth of 5.5% at the midpoint. Moreover, it reiterated its premium operating earnings growth rate of 7% to 9% for 2026 through 2030, with an expected CAGR of 9%.
American Electric Power Company, Inc. (NASDAQ:AEP) was also recently included in our list of the 15 Best Nuclear Power Stocks to Buy According to Wall Street ***** ysts.
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the nation's largest electricity producers with approximately 29 GW of diverse generating capacity. The company operates and maintains the nation's largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states.
On June 18, Ladenburg trimmed its price target on American Electric Power Company, Inc. (NASDAQ:AEP) from $148 to $143, but maintained its 'Buy' rating on the shares. The lowered target still indicates an upside potential of almost 10% from the current price level.
To keep up with the soaring load demand, American Electric Power Company, Inc. (NASDAQ:AEP) recently increased its 5-year capital plan to $78 billion, up from $72 billion previously. In its last earnings call, the company reaffirmed its operating earnings guidance of $6.15 to $6.45 per share for full-year 2026, indicating a YoY growth of 5.5% at the midpoint. Moreover, it reiterated its premium operating earnings growth rate of 7% to 9% for 2026 through 2030, with an expected CAGR of 9%.
American Electric Power Company, Inc. (NASDAQ:AEP) was also recently included in our list of the 15 Best Nuclear Power Stocks to Buy According to Wall Street ***** ysts.
4 months ago
PayPal's (NASDAQ: PYPL) share price has stumbled by more than 25% year to date, and the stock now trades at a P/E ratio of 8. However, that doesn't make it a buy right away, and it may never climb to a lofty P/E ratio now that the growth narrative is mostly dead.
PayPal delivered 7% year-over-year revenue growth in the first quarter, which is well below that of emerging fintech stocks like SoFi Technologies (up 41% in Q1) and Robinhood Markets (up 15%). PayPal's revenue compound annual growth rate (CAGR) has been declining in recent years. It has a 10-year CAGR of 13.9%, but only a 7.2% CAGR over the past three years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
PayPal isn't delivering high user growth rates either. The company reached 439 million daily active users in Q1, which only represents a 1% year-over-year increase. Meanwhile, Meta Platforms, a company known by almost everyone, delivered 4% year-over-year user growth but turned that into 33% year-over-year revenue growth. More specifically, in fintech, SoFi grew its user base by 35% year over year.
PayPal doesn't have the exciting user growth rates of SoFi, and it can't translate low user growth into surging sales the way Meta Platforms can. PayPal CEO Enrique Lores said in the Q1 press release that he was confident that the company would soon return to "a more durable path to long-term growth," but the multiyear trend makes it an uphill battle.
PayPal delivered 7% year-over-year revenue growth in the first quarter, which is well below that of emerging fintech stocks like SoFi Technologies (up 41% in Q1) and Robinhood Markets (up 15%). PayPal's revenue compound annual growth rate (CAGR) has been declining in recent years. It has a 10-year CAGR of 13.9%, but only a 7.2% CAGR over the past three years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
PayPal isn't delivering high user growth rates either. The company reached 439 million daily active users in Q1, which only represents a 1% year-over-year increase. Meanwhile, Meta Platforms, a company known by almost everyone, delivered 4% year-over-year user growth but turned that into 33% year-over-year revenue growth. More specifically, in fintech, SoFi grew its user base by 35% year over year.
PayPal doesn't have the exciting user growth rates of SoFi, and it can't translate low user growth into surging sales the way Meta Platforms can. PayPal CEO Enrique Lores said in the Q1 press release that he was confident that the company would soon return to "a more durable path to long-term growth," but the multiyear trend makes it an uphill battle.
5 months ago
What The Price Is Asking For
To defend PLTR's $312.7B market cap over the next 7 years, three things have to play out. The multiple settles from today's 137.1x toward 28.8x, the multiple a mature, scaled software franchise typically settles into. Margins land near 27.3%, set near the midpoint of the company's own margin cycle, since its peak clears mature peers but its through-cycle average sits well below that peak. And revenue compounds from $5.2B today to $39.8B at maturity, supporting $10.9B of annual net income. That last line works out to a required revenue CAGR of 33.7%, below the 67.7% the business is currently running.
Is This Realistic?
Today's price needs less growth than the business is currently delivering. But that current pace is a cyclical peak, not a sustainable rate. In a normal year, the bar is meaningfully higher.
Should You Invest In Palantir Technologies?
To defend PLTR's $312.7B market cap over the next 7 years, three things have to play out. The multiple settles from today's 137.1x toward 28.8x, the multiple a mature, scaled software franchise typically settles into. Margins land near 27.3%, set near the midpoint of the company's own margin cycle, since its peak clears mature peers but its through-cycle average sits well below that peak. And revenue compounds from $5.2B today to $39.8B at maturity, supporting $10.9B of annual net income. That last line works out to a required revenue CAGR of 33.7%, below the 67.7% the business is currently running.
Is This Realistic?
Today's price needs less growth than the business is currently delivering. But that current pace is a cyclical peak, not a sustainable rate. In a normal year, the bar is meaningfully higher.
Should You Invest In Palantir Technologies?
5 months ago
With a net profit margin of 25.30%, Oracle Corporation (NYSE:ORCL) is included among the 12 Most Profitable American Stocks to Buy in 2026.
Oracle Corporation (NYSE:ORCL) is a global leader in AI, delivering the cloud infrastructure, data, and applications that organizations across the world trust to successfully achieve business outcomes at scale.
On June 11, BMO Capital ***** yst Keith Bachman lifted the firm's price target on Oracle Corporation (NYSE:ORCL) from $200 to $220, while maintaining an 'Outperform' rating on the shares. The revised target reflects an upside of over 6% from the current levels.
Oracle Corporation (NYSE:ORCL) delivered a record quarter in Q4, driven by strength in both its cloud infrastructure and cloud apps business. Although cloud-related margins may remain under pressure in the near-term, BMO Capital expects the company's earnings to move higher in FY 2027, supported by the lower operating costs.
Oracle reiterated its previous revenue guidance of $90 billion for FY 2027, while it raised its adjusted earnings forecasts to $8.05 per share, marking a growth of 18% from last year. This compares to Wall Street estimates of $8.01 per share in earnings and $88.9 billion in revenue. Moreover, the cloud computing firm remains confident in delivering on its long-term financial targets, including a plus 31% revenue CAGR and a plus 28% EPS CAGR through the fiscal year 2030.
Oracle Corporation (NYSE:ORCL) is a global leader in AI, delivering the cloud infrastructure, data, and applications that organizations across the world trust to successfully achieve business outcomes at scale.
On June 11, BMO Capital ***** yst Keith Bachman lifted the firm's price target on Oracle Corporation (NYSE:ORCL) from $200 to $220, while maintaining an 'Outperform' rating on the shares. The revised target reflects an upside of over 6% from the current levels.
Oracle Corporation (NYSE:ORCL) delivered a record quarter in Q4, driven by strength in both its cloud infrastructure and cloud apps business. Although cloud-related margins may remain under pressure in the near-term, BMO Capital expects the company's earnings to move higher in FY 2027, supported by the lower operating costs.
Oracle reiterated its previous revenue guidance of $90 billion for FY 2027, while it raised its adjusted earnings forecasts to $8.05 per share, marking a growth of 18% from last year. This compares to Wall Street estimates of $8.01 per share in earnings and $88.9 billion in revenue. Moreover, the cloud computing firm remains confident in delivering on its long-term financial targets, including a plus 31% revenue CAGR and a plus 28% EPS CAGR through the fiscal year 2030.
