5 Best Upside Stocks to Buy Right Now

1. Micron Technology (NASDAQ: MU)

Number of Hedge Fund Holders: 100     

Micron Technology (NASDAQ: MU) is an Idaho-based firm that makes and sells memory storage equipment used in electronic devices. It is ranked first on our list of 10 best upside stocks to buy right now. The stock has returned more than 51% to investors over the past year. Some of the products sold by the firm include random access memory, flash memory, portable storage devices, and others. The products made by the firm are used by cloud servers, graphics companies, and networking clients. 

In earnings results for the second fiscal quarter, posted on March 31, Micron Technology (NASDAQ: MU) reported earnings per share of $0.98, topping market predictions by $0.03. The revenue over the period was more than $6 billion, up 30% year-on-year. 

At the end of the first quarter of 2021, 100 hedge funds in the database of Insider Monkey held stakes worth $7.6 billion in Micron Technology (NASDAQ: MU), the same as in the preceding quarter worth $8.1 billion.

In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ: MU) was one of them. Here is what the fund said:

“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.

With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.

As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.

While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.

The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”

You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.

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