In this article, we’ll explore Jim Cramer’s Latest Top 10 Stock Picks.
Jim Cramer: Billions to Flood the Market as Double Rate Cut Sparks Stock Surge!
In a recent episode of Mad Money, Jim Cramer explains that a double rate cut, or a 50 basis point reduction, is likely to attract tens of billions of dollars into the stock market from investors who have been sitting on the sidelines. Many people have been holding onto cash in money funds, eager to invest, especially as rates start to decline. While some are tied up in CDs or treasuries, those inaccessible money funds see the opportunity to move their cash into high-yield dividend stocks.
Cramer warns that they need to act quickly, as these stocks will soon rise in price and lose their high-yield appeal. He also criticizes commentators on television who downplay the Fed’s impact by focusing on the national debt. He argues that these voices are not interested in helping everyday investors; instead, they cater to the wealthy. Cramer reminds listeners that their audience is diverse, and it’s essential to focus on making informed investment decisions.
“When you get a double rate cut, meaning a 50 basis point monster, well, that’s going to bring tens of billions of dollars into the stock market from the sidelines. The sidelines have been so lucrative for so long that people in money funds have been coveting their dollars. Sure, there are plenty of folks sitting in two- to three-year CDs or treasuries who can’t easily cash out, but if you’re in an easily accessible money fund, you can see rates are going lower now, right? That’s all the more incentive to put your cash into, say, dividend stocks with high yields. You’ve got to do it fast because pretty soon, the high yielders will rally to the point where they’re just mid-yielders.
No matter how smart they sound, the people who come on television to argue that the Fed’s actions don’t matter because the national debt is too big are being unhelpful. These people are not concerned with helping you make money; you’re not important to them. They’re speaking to the billionaire class. Yes, they crowded you out a long time ago. Remember, we do have all sorts of audiences.”
Additionally, Jim Cramer points out that many Wall Street analysts like to go against popular opinion, which leads them to downplay the importance of a half-point rate cut. He believes this perspective ignores common sense. Cramer acknowledges that while aging has its downsides, like not being able to move around as easily at events, he feels he has gained wisdom. He understands the situation better than those who argue that the rate cut indicates panic, simply by being present and observing the market.
“Everybody on Wall Street loves to be a contrarian, which is why so many commentators keep trying to minimize the impact of a half-point rate cut. Not me! No matter what, common sense dictates that there are always people who think they know better than common sense, and they don’t. There are so few advantages to age, I have to tell you.”
Can the 50 Basis Point Cut Spark Stock Gains and Revive Housing?
Jim Cramer points out that during rate cuts, there are many promising winners to consider, while the losers are easy to spot and should be avoided. He emphasizes that when the Wall Street Journal reported the chance of a 50 basis point cut, it opened up more opportunities for stocks to benefit. A smaller 25 basis point cut could have aided homebuilders if they had built more homes, but they’ve been reluctant due to high rates. However, a 50 basis point cut will lower mortgage rates, making homes more affordable and likely giving a boost to the housing market.
“The winners in an easing cycle are varied and exciting, while the losers are obvious and must be avoided. From the moment the Journal reported that there could be a 50 basis point cut, the swatch of what can go higher expanded dogmatically. A 25-point cut would have been truly beneficial for homebuilders if they would just start building a lot more homes, that’s something they’ve been reluctant to do because rates are still too high. But a 50 basis point cut means lower mortgages for certain and, therefore, more affordable homes.”
Our Methodology:
In this article, we delve into the latest episode of Jim Cramer’s Morning Thoughts, where he analyzed various stocks. We rank these companies based on their popularity among hedge funds, starting with the least owned and moving up to the most favored.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A Game Changer: Jim Cramer’s Latest Top 10 Stock Picks
10. KB Home (NYSE:KBH)
Number of Hedge Fund Investors: 23
Jim Cramer reported that Bank of America has increased its price targets for homebuilders, including KB Home (NYSE:KBH), due to the advantages of lower borrowing costs. Despite this optimistic outlook, Bank of America has kept a neutral rating on KB Home (NYSE:KBH).
KB Home (NYSE:KBH) has a positive outlook, supported by robust financial performance and favorable market conditions. In Q2 2024, KB Home (NYSE:KBH) reported earnings per share (EPS) of $2.15, significantly higher than the expected $1.78, along with revenue of $1.71 billion that exceeded forecasts. This growth stems from strong results in key markets, a 14% increase in book value per share, and a solid gross profit margin of 21.1%-21.5%. For 2024, KB Home (NYSE:KBH) projects housing revenues between $6.7 billion and $6.9 billion, with average home prices expected to range from $485,000 to $495,000.
Despite facing challenges like rising interest rates, KB Home (NYSE:KBH) has effectively navigated increased material costs and market uncertainties, leading to consistent revenue growth and community expansion. Analysts anticipate about 7% annual earnings growth over the next three years, highlighting strong long-term potential. Overall, KB Home (NYSE:KBH)’s strong financial results, market expansion, and positive housing demand trends.
9. CarMax Inc. (NYSE:KMX)
Number of Hedge Fund Investors: 35
Jim Cramer notes that JPMorgan has raised its price target for CarMax Inc. (NYSE:KMX) from $55 to $65 per share, but maintains an underweight sell rating. This new target is still below CarMax Inc. (NYSE:KMX)’s closing price of $77 on Wednesday. The analysts pointed to improved fundamentals, yet they believe the risk-reward ratio for CarMax Inc. (NYSE:KMX) remains unattractive due to high valuation multiples.
“JPMorgan raised its Carmax price target to $65 per share from $55 but kept its underweight sell rating. The new PT level is still below where shares closed Wednesday at $77. The analysts talked about better fundamentals but still felt the risk-reward ratio on the stock is unattractive due to stretched multiples.”
CarMax Inc. (NYSE:KMX) is a top retailer of used cars in the U.S., known for its clear pricing and focus on customer service. CarMax Inc. (NYSE:KMX)’s strong performance in Q2 2024, with revenues reaching $7.6 billion—up 9% from the previous year—and net income increasing to $252 million, supports a positive outlook. As more consumers opt for used cars due to rising interest rates and inflation, CarMax Inc. (NYSE:KMX) is well-positioned to benefit from this trend.
CarMax Inc. (NYSE:KMX) has also improved its online platform, making the buying experience smoother and aligning with changing consumer habits. CarMax Inc. (NYSE:KMX) dedication to customer satisfaction and transparency has built strong loyalty, attracting both returning and new buyers. Additionally, CarMax Inc. (NYSE:KMX) is focusing on growth by expanding its store locations and improving inventory management, which should boost sales. Analysts are optimistic about CarMax Inc. (NYSE:KMX)’s future, emphasizing its solid business model and growth potential in the market.
Giverny Capital Asset Management stated the following regarding CarMax, Inc. (NYSE:KMX) in its Q2 2024 investor letter:
“Our holding CarMax, Inc. (NYSE:KMX) continues to scuffle along in what is a very challenging market for used cars, because of both high interest rates and a lack of supply of late model used cars after supply chain issues slowed production in the COVID-19 years. A typical monthly payment on a good used car is more than $100 per month higher today than pre-pandemic, with about two-thirds of that attributable to higher auto prices and one-third to higher interest rates on loans.
The company noted in a recent meeting with investors that annual sales of used cars aged 0-6 years have fallen from about 15 million to 12.3 million, down 18%, over the past couple of years. Lately, it appears that sales of late model used cars have begun to improve. If the trend holds, CarMax ought to see much better results.”
8. PulteGroup Inc. (NYSE:PHM)
Number of Hedge Fund Investors: 35
Jim Cramer reports that Bank of America has increased its price targets for homebuilders, including PulteGroup Inc. (NYSE:PHM), highlighting the advantages of lower borrowing costs. BofA has also maintained a buy rating on PulteGroup Inc. (NYSE:PHM).
PulteGroup, Inc. (NYSE:PHM), one of the largest homebuilders in the U.S., has a promising outlook driven by several key factors. In its Q2 2024 earnings report, PulteGroup, Inc. (NYSE:PHM) announced total revenues of $3.4 billion, a 10% increase from the previous year, and net income rose to $634 million, up from $580 million in Q2 2023. PulteGroup, Inc. (NYSE:PHM) sold 6,182 homes in this quarter, reflecting strong demand despite market ups and downs, and it has a backlog valued at $7.1 billion, indicating robust future revenue potential.
The demand for new homes is particularly strong in entry-level and active adult markets, which PulteGroup, Inc. (NYSE:PHM) is strategically focusing on, as these groups tend to be less affected by economic shifts. PulteGroup, Inc. (NYSE:PHM) has also shown effective cost management, allowing it to maintain good profit margins even with rising material costs.
By following a careful land acquisition strategy and choosing desirable locations for its homes, PulteGroup, Inc. (NYSE:PHM) is well-prepared to take advantage of the current recovery in the housing market, driven by increasing household formations and buyer interest. Additionally, PulteGroup, Inc. (NYSE:PHM)’s expansion into new areas and diversification of its offerings further strengthen its revenue potential, solidifying its market position.
7. Toll Brothers Inc. (NYSE:TOL)
Number of Hedge Fund Investors: 46
Jim Cramer shared that Bank of America has raised its price targets for homebuilders, including Toll Brothers Inc. (NYSE:TOL), while also maintaining a buy rating on the company.
Toll Brothers Inc. (NYSE:TOL) is poised for growth, bolstered by strong performance in Q2 2024, during which it reported approximately $2 billion in revenue, driven by high demand for luxury homes. Improved gross margins reflect effective cost management and pricing strategies.
The luxury housing market remains robust, and as a leading builder in this sector, Toll Brothers Inc. (NYSE:TOL) is capitalizing on increasing consumer interest in premium homes, which is fueled by lifestyle changes and low inventory. Toll Brothers Inc. (NYSE:TOL) geographic diversification across various U.S. markets helps mitigate risks and allows the company to leverage regional trends. Additionally, a substantial backlog of homes under contract indicates promising future revenue potential and reflects consumer confidence.
Toll Brothers Inc. (NYSE:TOL) is also dedicated to sustainability, emphasizing energy-efficient building practices that attract environmentally conscious buyers, giving it a competitive advantage. Recent developments include expanding its product lines to offer more customizable home options and exploring new communities aimed at active adult living, targeting the growing number of older buyers looking for luxury homes.
Baron Real Estate Fund stated the following regarding Toll Brothers, Inc. (NYSE:TOL) in its Q2 2024 investor letter:
“We trimmed our position in Toll Brothers, Inc. (NYSE:TOL), America’s leading luxury homebuilder, during the second quarter following exceptionally strong share price appreciation over the last year and the Fund’s resulting large position size. Toll Brothers remains the largest position in the Fund, and we continue to be enthusiastic about the company’s long-term prospects.
Our meetings with CEO Doug Yearley and other key members of the company’s management confirm our view that the long-term prospects remain compelling. We believe Toll Brothers has the ability to grow its community count of homes by approximately 10% per year as the company continues to gain market share against its mostly smaller private competitors who lack scale advantages, brand awareness, and access to attractively priced financing. Further, Toll Brothers has a long runway for multi-decade growth as it targets the fastest growing income demographic in the U.S. – 16 million households with annual incomes of at least $200,000. According to the U.S. Census Bureau (September 2023), households with over $200,000 in annual income have grown approximately 10 times faster than all U.S. households in the last 10 years. Currently, Toll Brothers has captured only 0.06% of this important demographic group. For additional reasons we remain optimistic on our investment in Toll Brothers, please see the “Top contributors” section of our first quarter 2024 shareholder letter.”
6. T-Mobile US Inc. (NASDAQ:TMUS)
Number of Hedge Fund Investors: 64
Jim Cramer reports that T-Mobile US Inc. (NASDAQ:TMUS) CEO Mike Sievert mentioned that preorders for the iPhone 16 are surpassing last year’s figures. During an appearance on Mad Money, Sievert noted that early surveys suggesting lower demand for the new models were inaccurate.
“T-Mobile CEO Mike Sievert told me that preorder sales of the iPhone 16 are pacing ahead of last year’s model. On “Mad Money” Wednesday, Sievert said that early surveys that there is less demand than expected for the new models were way out of whack with that he is seeing. The AI-ready iPhone 16 from Club name Apple will be in stores Friday
JPMorgan raised its T-Mobile price target to $230 per share from $220 and kept its overweight buy rating. The analysts cited accelerating sales. Oppenheimer bumped up its PT to $215 and kept its buy. The analysts who attended T-Mobile’s investor day became more positive on the stock.”
T-Mobile US, Inc. (NASDAQ:TMUS) has a strong outlook, driven by impressive Q2 2024 earnings that exceeded analyst expectations, showcasing substantial revenue growth and notable net customer additions, especially in the postpaid segment. As a key player in the 5G market, T-Mobile US, Inc. (NASDAQ:TMUS)’s wide coverage and continuous network improvements are expected to further boost customer growth and enhance its service offerings, providing a competitive advantage.
The consistent increase in postpaid customers indicates successful marketing strategies and high customer satisfaction, which support stable revenue and a solid subscriber base. Additionally, T-Mobile US, Inc. (NASDAQ: TMUS) is launching new service plans, including bundled home internet options, to attract new customers and strengthen loyalty among existing ones.
Strategic partnerships with technology firms aimed at enhancing digital services also strengthen T-Mobile US, Inc. (NASDAQ:TMUS)’s competitive position, particularly in integrating mobile and home broadband solutions. Recent announcements about 5G expansions and collaborations to improve digital offerings have fostered positive sentiment regarding T-Mobile US, Inc. (NASDAQ:TMUS)’s growth prospects.
5. NIKE Inc. (NYSE:NKE)
Number of Hedge Fund Investors: 66
Jim Cramer notes that Bernstein has reduced its price target for NIKE Inc. (NYSE:NKE) from $112 to $109 per share while maintaining an outperform buy rating. The analysts cited concerns raised by former NIKE Inc. (NYSE:NKE) executives as the reason for this adjustment.
“Bernstein trimmed its Nike price target to $109 per share from $112 and kept its outperform buy rating. The analysts cited concerns they heard from former Nike executives.”
NIKE, Inc. (NYSE:NKE) is a leading brand in athletic footwear and apparel, and there are several reasons to be optimistic about its future. In its Q2 2024 earnings report, NIKE, Inc. (NYSE:NKE) announced a 10% increase in total revenues to $13.3 billion, with net income rising to $1.5 billion. A key highlight was a 20% growth in direct-to-consumer sales, demonstrating the effectiveness of its online sales strategy. NIKE, Inc. (NYSE:NKE) is also focused on innovation, launching new products made from sustainable materials that resonate with younger consumers, especially Gen Z and millennials.
Furthermore, NIKE, Inc. (NYSE:NKE) is expanding into emerging markets like Asia and Latin America, where interest in premium athletic gear is on the rise. Strategic partnerships with well-known athletes and influencers have boosted its brand visibility and attractiveness. NIKE, Inc. (NYSE:NKE)’s commitment to sustainability matches current consumer preferences for eco-friendly brands, which could help attract more customers.
Mar Vista Focus strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its Q2 2024 investor letter:
“NIKE, Inc.’s (NYSE:NKE) stock declined following management’s revised forecast for fiscal year 2025, projecting negative mid-single-digit revenue growth instead of the previously anticipated positive growth. The company has observed a marked slowdown in lifestyle product sales since April, a trend that persisted into June. Our current projections indicate that both sales and earnings will fall 15-20% below the conservative estimates set by management just a quarter ago.
This substantial downward revision in sales and earnings is attributed to insufficient product innovation, wholesale channel shift, and intentional reduction of supply in lifestyle franchises. While the negative adjustments to guidance could potentially act as a clearing event for the stock, the degree of conservatism in the new projections remains uncertain.
Nike maintains its position as the global leader in sportswear. However, its revenue growth has been hampered by a lack of innovation, and its recovery is further complicated by deteriorating macroeconomic conditions in the US and China. The company’s renewed focus on innovation and efforts to re-engage with wholesale channels may eventually help restore growth, but we believe increased skepticism regarding management’s ability to execute is justified.”
4. CrowdStrike Holdings Inc. (NASDAQ:CRWD)
Number of Hedge Fund Investors: 69
Jim Cramer reports that Evercore ISI has taken CrowdStrike Holdings Inc. (NASDAQ:CRWD) off its Tactical Underperform list, while keeping a buy rating and a price target of $325. The analysts suggest that long-term investors can take advantage of this opportunity.
“Evercore ISI removed CrowdStrike from its Tactical Underperform list. The analysts maintained their buy rating and a price target of $325. They said long-term investors can be opportunistic.”
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has a positive outlook, bolstered by its strong position in the cybersecurity market, impressive financial results, and promising growth potential. In Q3 2023, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) exceeded expectations, demonstrating robust demand for its cloud security and identity protection offerings.
Despite a challenging macroeconomic environment, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) achieved significant profitability gains. Analysts forecast that tCrowdStrike Holdings, Inc. (NASDAQ:CRWD) will grow its earnings by 28.14% annually over the next few years, outpacing industry averages. Revenue is expected to increase at an annual growth rate of 18.12%, fueled by the growing adoption of its cloud security, identity protection, and AI-driven solutions.
As a leader in endpoint security, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is also expanding into areas such as SIEM, CNAPP, and identity security, leveraging its innovative AI and cloud technologies. Analysts express strong optimism, with price targets ranging from $222 to $334.80, reflecting confidence in CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s growth despite broader economic challenges.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q2 2024 investor letter:
“Our cybersecurity holdings were also beneficial to the strategy this quarter. That included the 20% gain from CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a cloud-based network security service provider that supports a range of devices, endpoints, and cloud environments. CrowdStrike’s revenues and earnings exceeded expectations, with 33% growth in annual recurring revenue.
CrowdStrike continues to see growing momentum in emerging areas such as Cloud Security, Identity, and Security Information & Event Management where it is displacing legacy providers. That led CrowdStrike’s management to increase its guidance for revenues and earnings for the balance of its fiscal year.”
3. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Hedge Fund Investors: 108
Jim Cramer shares that Lisa Su, CEO of Advanced Micro Devices Inc. (NASDAQ:AMD), mentioned on Mad Money that there is currently high demand for all of the company’s chips, particularly those designed for AI. Su expressed confidence in the future, stating that she anticipates years of upgrades and an increasing need for more powerful chips.
“Lisa Su, CEO of Club name Advanced Micro Devices, told me Wednesday on “Mad Money” that there is so much demand right now for all of her company’s chips, especially the AI ones. Su said she sees years and years of upgrades and more and more powerful chips needed.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) has a favorable outlook, supported by its strong foothold in fast-growing areas such as data centers and artificial intelligence. As demand for high-performance computing rises, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s EPYC processors and Radeon graphics cards are seeing increased sales, surpassing competitors like Intel and NVIDIA (NASDAQ:NVDA). The successful introduction of the Ryzen 7000 series further solidifies Advanced Micro Devices, Inc. (NASDAQ:AMD)’s market presence.
Collaborations with major cloud providers like Microsoft (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG) enhance its integration into enterprise solutions. Moreover, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported a 30% increase in year-over-year revenue, reaching $5.3 billion in Q2 2024, highlighting Advanced Micro Devices, Inc. (NASDAQ:AMD) financial strength.
Baron Technology Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high performance computing technology, software, and products including CPUs,9 GPUs, FPGAs,10 and others. Shares of AMD remain volatile, and after a strong run earlier in the year, the stock fell during the quarter as investors continue to wrestle with AMD’s competitive positioning in the AI compute market relative to NVIDIA, who continues to strengthen its full-system solution offerings at a rapid pace.
AMD also updated its MI300 GPU chip revenue expectations for the full year to “greater than $4 billion” vs. prior $3.5 billion, which disappointed the market a bit relative to high expectations. Over the long-term, we believe AMD, with its unique chiplet-based architecture and open-source software ecosystem, will play a meaningful role in the rapidly growing AI compute market, where customers don’t want to be locked into a single vendor and AMD offers a compelling total-cost-of-ownership proposition, especially in inferencing workloads.
Simultaneously, we believe AMD will continue to take share from Intel within traditional data center CPUs, which, while now a slower growth market, is likely to see a near-term refresh as data centers look for ways to improve energy efficiency and optimize existing footprints.”
2. Salesforce.com Inc. (NYSE:CRM)
Number of Hedge Fund Investors: 117
Jim Cramer reports that KeyBanc believes Agentforce, a new initiative from Salesforce.com Inc. (NYSE:CRM), will require significant investment but will ultimately pay off. The analysts described it as a revolutionary approach to integrating AI. Barclays echoed this sentiment, stating that Agentforce will be a major success, especially given Salesforce.com Inc. (NYSE:CRM)’s extensive data resources.
“KeyBanc said that Agentforce is something that Club name Salesforce will spend a lot of money on and it will pay off. The analysts described it as a whole new way to accept AI. Barclays said Agentforce will be huge, too. Remember, Salesforce has all the data.”
Salesforce.com, Inc. (NYSE:CRM) has a promising outlook, bolstered by strong Q2 2024 earnings that reported $8.6 billion in revenue, a 17% increase from the previous year, and a net income of about $1.2 billion. Salesforce.com, Inc. (NYSE:CRM) success stems from notable growth in subscription and support revenue, driven by high demand for its cloud solutions. As more businesses transition to digital, Salesforce.com, Inc. (NYSE:CRM)’s strong foothold in Customer Relationship Management (CRM) positions it to capture a larger share of the market.
Salesforce.com, Inc. (NYSE:CRM) is making significant investments in artificial intelligence through its Einstein platform, enhancing customer experiences and streamlining sales processes, particularly with the introduction of new generative AI features. Strategic acquisitions like Slack and Tableau have broadened its product offerings, enhancing collaboration and analytics.
With a diverse and expanding customer base, Salesforce.com, Inc. (NYSE:CRM) serves both small businesses and large enterprises. Its commitment to sustainability and social responsibility aligns well with current market trends, boosting its reputation. Recent innovations in product features and a growing partner ecosystem further demonstrate Salesforce.com, Inc. (NYSE:CRM)’s dedication to enhancing user experience and collaboration, highlighting its potential for growth in the tech industry.
Ithaka US Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2024 investor letter:
“Salesforce, Inc. (NYSE:CRM) is the largest pure-play cloud software company, holding a leading market share in customer relationship management applications and a top-five market share position in the company’s other clouds (Marketing, Service, Platform, Analytics, Integration, and Commerce). The company’s software subscription term-license model differs from the traditional perpetual-license software model in two respects:
(1) the software is hosted on centralized servers and delivered over the internet, as opposed to traditional enterprise software that is loaded directly onto customers’ hard drives or servers; and (2) the revenue model is subscription-based, typically charging monthly fees per user as opposed to charging one-time licensing fees. The stock’s weak relative performance followed its fiscal first quarter earnings announcement, where the company missed top-line and cRPO (current remaining performance obligations) estimates while also issuing weak forward guidance.”
1. Micron Technology Inc. (NASDAQ:MU)
Number of Hedge Fund Investors: 120
Jim Cramer reports that Stifel has lowered its price target for Micron Technology Inc. (NASDAQ:MU) from $165 to $135 per share while keeping a buy rating. Similarly, TD Cowen also maintained a buy rating but cut its target to $115. Despite these reductions, both targets are significantly higher than Micron Technology Inc. (NASDAQ:MU)’s closing price of just over $87 on Wednesday. The analysts anticipate that next week’s earnings report may be disappointing.
“Stifel cut its Micron price target to $135 per share from $165 but kept its buy rating. TD Cowen, which also maintained a buy, cut its PT even lower to $115. Those levels are still much higher than the stock’s Wednesday close price of just over $87. The analysts expect next week’s earnings to be underwhelming.”
Micron Technology, Inc. (NASDAQ:MU) is well-positioned for substantial growth, fueled by rising demand for memory products in fields like artificial intelligence, 5G, and cloud computing. In Micron Technology, Inc. (NASDAQ:MU) recent Q3 2024 earnings report, the company announced a 15% increase in revenue to $5.2 billion, surpassing expectations and highlighting improved gross margins, which reflects effective management amid supply chain challenges.
Micron Technology, Inc. (NASDAQ:MU)’s advancements in DDR5 and 3D NAND technologies give it a competitive edge and the potential to capture additional market share. Furthermore, Micron Technology, Inc. (NASDAQ:MU) appealing valuation compared to competitors suggests the possibility of value appreciation as market conditions improve.
While we acknowledge the potential of Micron Technology, Inc. (NASDAQ:MU), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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