We recently compiled a list of the 7 Best Under The Radar Stocks to Buy According to Analysts. In this article, we are going to take a look at where Marvell Technology (NASDAQ:MRVL) stands against the other under the radar stocks.
The Need to Address the National Debt, Deficit, and Tariffs
Billionaire investor and entrepreneur Mark Cuban recently shared his thoughts on the current state of the economy, politics, and the upcoming presidential election. In his interview on CNBC on September 26, Cuban expressed his concerns about the national debt and deficit, stating that neither candidate addressed these critical issues. He believes the country needs to come together and find a solution to reduce the deficit rather than engaging in a “competition” to see who can give away more. Cuban suggested that taxing stock buybacks could be a way to generate revenue, reduce the deficit, and change corporate behavior. He believes that the country needs a leader who can bring people together and find solutions to the problems facing the nation. Cuban also expressed his concerns about the impact of tariffs on the economy, citing the example of Intel and TSMC, which are already producing high-tech chips. He believes that the government needs to find ways to support American companies and create jobs rather than relying on tariffs.
Cuban noted that there has not been a boom in the manufacturing industry; the government’s policies, such as the I.R.A. (Inflation Reduction Act), have contributed to the manufacturing industry. However, 75% of manufacturing companies have fewer than 20 employees, and the government needs to find ways to support these small businesses. Cuban also mentioned that some people believe that the government should not have a steel policy, while others argue that it is necessary. Cuban believes that the world has changed and the United States needs to invest in AI to maintain its military dominance and competitiveness. He emphasized that whoever wins in AI will have the best military and that the country cannot afford to lose this battle.
Cuban believes that the government should not impose price controls, as it can have unintended consequences, the free market can take care of itself, and that the government should not intervene unless necessary.
Mark Cuban’s insights highlight the need to address critical issues such as the national debt, deficit, and the impact of tariffs on the economy.
Our Methodology
To compile our list of the 7 best under the radar stocks to buy according to analysts, we sifted through internet rankings to find 30 under the radar stocks. From that list, we narrowed our choices to the 7 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of October 2. We also added the number of hedge fund holding stocks in these companies, which was taken from our database of 912 elite hedge funds as of Q2 of 2024. The list is sorted in ascending order of their average upside potential as of October 2.
Why do we care about what hedge funds do? 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).
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology (NASDAQ:MRVL)
Upside Potential: 24.26%
Number of Hedge Fund Investors: 74
Marvell Technology (NASDAQ:MRVL) is a semiconductor company that designs and develops products for data infrastructure, including storage, networking, and connectivity solutions. The company’s products are used in a wide variety of applications, from 5G wireless networks to cloud data centers.
Marvell Technology (NASDAQ:MRVL) is well-positioned for growth acceleration and EBITDA margin expansion. The company’s Data Center (DC) segment is expected to drive overall growth, with revenue growing 7.9% in the quarter ended on August 3. The DC segment’s growth is driven by increasing investments in data centers. Marvell Technology’s (NASDAQ:MRVL) partnerships with major companies such as Microsoft and BlackRock also support the growth outlook.
The company’s EBITDA margin of 20%, has potential for significant expansion. The company’s guidance for next quarter also suggests a sharp jump in margins, with adjusted operating expenses expected to grow by 2% sequentially despite an expected sequential revenue growth of 14%.
Marvell Technology (NASDAQ:MRVL) has a strong growth outlook. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $92.11, which represents a 24.26% upside potential from its current levels. As of the second quarter, the company’s stock is held by 74 hedge funds, with a total stake valued at $3.57 billion.
Overall MRVL ranks 7th on our list of the under the radar stocks to buy. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that 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 MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.