Latest news with #JimKelleher
Yahoo
25-06-2025
- Business
- Yahoo
Argus Research Raises Intermediate-term Rating on Jabil (JBL) Stock
Jabil Inc. (NYSE:JBL) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, Argus Research upped its intermediate-term rating on Jabil Inc. (NYSE:JBL)'s stock to 'Buy' from 'Hold' with a price objective of $230. The firm's long-term rating on the company's stock remains 'Buy.' Analysts led by Jim Kelleher highlighted that the company's revenue and non-GAAP EPS in Q3 2025 sharply exceeded the Wall Street expectations and the guidance. Furthermore, the company returned to positive annual topline growth for the first time since Q3 2023. A technician overseeing an application-specific integrated circuit design, etched on a metallic plate. In Q3 2025, Jabil Inc. (NYSE:JBL) saw net revenue of $7.8 billion and core diluted EPS (Non-GAAP) of $2.55. The company's Intelligent Infrastructure segment remains a critical growth engine, supported by accelerating AI-driven demand. For FY 2025, it expects net revenue of $29 billion and core diluted earnings per share (Non-GAAP) of $9.33. Kelleher and his team believe that Jabil Inc. (NYSE:JBL) seems to be well-placed beyond FY 2025 as a result of fast-growing opportunities available in AI data center infrastructure, connected healthcare, semiconductor capital equipment, and other core businesses. As per Kelleher's team, the revenue headwinds in end-markets, in technology and non-technology areas, continue to give way to increased demand, mainly in the AI and cloud space. As per the analysts, Jabil Inc. (NYSE:JBL) expects a $8.5 billion annual AI revenue opportunity, and it plans to invest $500 million in new US facilities. Jabil Inc. (NYSE:JBL) provides electronics design, production, and product management services, electronic circuit design services, including application-specific integrated circuit design, firmware development, and rapid prototyping services, among others. While we acknowledge the potential of JBL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JBL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None.
Yahoo
16-06-2025
- Business
- Yahoo
Western Digital Corporation (WDC) Stock Forecasts
Summary Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as
Yahoo
29-05-2025
- Business
- Yahoo
Argus Analyst Sees Celestica Inc. (NYSE:CLS) Benefiting From Diversification and AI Trends
Argus analyst Jim Kelleher recently lowered the price target on Celestica Inc. (NYSE:CLS) to $120 from $150 but kept a Buy rating on the shares after its Q1 earnings and revenue beat. CLS offers a range of product manufacturing and related supply chain services. In an investor note, the analyst noted that the company was benefiting from a portfolio diversification strategy focusing on high-growth, high-margin businesses as well as from trends in artificial intelligence and machine learning. Argus added that while shares had weakened on rotation away from companies who were participating in the generative AI revolution, the company's demand fundamentals appeared intact and margins were expanding. A close-up of a circuit board with components depicting the intricate electronic componentry products the company produces. During the latest earnings disclosure, the firm raised the full-year 2025 revenue outlook to $10.85 billion, reflecting 12% year-over-year growth, and increased the adjusted EPS target to $5.00. For Q2 2025, revenue is projected between $2.575 billion and $2.725 billion, with adjusted EPS guidance of $1.17 to $1.27. The adjusted operating margin is expected to reach 7.2% at the midpoint. While we acknowledge the potential of CLS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CLS and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Sign in to access your portfolio
Globe and Mail
03-03-2025
- Business
- Globe and Mail
Prediction: 2 AI Stocks Will Be Worth More Than Palantir Technologies Within a Year
Palantir Technologies stock returned 240% in the past year, bringing its market value to $199 billion as of March 2. But certain Wall Street analysts think Shopify (NYSE: SHOP) and Advanced Micro Devices (NASDAQ: AMD) will top that figure within a year. Tyler Radke at Citigroup has set Shopify with a target price of $175 per share. That implies 56% upside from its current share price of $112. It also implies a market value of $228 billion. Jim Kelleher at Argus has set Advanced Micro Devices with a target price of $160 per share. That implies 60% upside from its current share price of $100. It also implies a market value of $259 billion. Those forecasts may be too aggressive, but I do believe Shopify and AMD can achieve $200 billion market values within 12 months, topping what Palantir is currently worth in the process. Here's why. 1. Shopify Shopify offers a turnkey solution for retail. Its software helps sellers run their businesses across physical and digital stores. Shopify also provides adjacent financial services for payments processing, bill payments, tax filing, and account management. And it supports merchants with solutions for marketing, logistics, wholesale, and cross-border commerce. The company two years ago introduced Shopify Magic, a suite of artificial intelligence (AI) tools that can draft product descriptions, edit images, and surface business insights. Shopify also uses AI internally to support its sales, customer service, and human resources teams. President Harley Finkelstein on the fourth-quarter earnings call told analysts, "Shopify will very much be one of the major beneficiaries in this new AI era." Anthony Chukumba at Loop Capital views Shopify as an underappreciated AI stock. "We believe Shopify will be able to grow its revenue at a much faster rate than its operating expenses for the foreseeable future, which will result in operating and free cash flow margin expansion and a higher valuation," he wrote in a note to clients in December. Shopify reported mixed results in the fourth quarter, missing estimates on the bottom line. Revenue increased 31% to $2.8 billion, the second consecutive sequential acceleration, and non-GAAP earnings increased 29% to $0.44 per diluted share. Also, Shopify reported a 10- basis-point increase in take rate, meaning merchants are engaging more deeply with its adjacent services. Importantly, Shopify accounted for 12% of retail e-commerce sales in the U.S. last year, up from 10% in the prior year, meaning it gained two percentage points of market share. That makes Shopify the second largest domestic e-commerce company behind Amazon, and management expects further market penetration in the coming year. Wall Street thinks Shopify's adjusted earnings will increase 20% in 2025. That makes the current price-to-earnings (PE) multiple of 88 looks expensive. But management guided for mid-20% sales growth in the first quarter, which makes the consensus estimate look low. And the company beat the consensus earnings estimate by an average of 24% in the past six quarters. If that pattern continues, Shopify could attain a $200 billion market value while its PE multiple fell to a slightly more reasonable 82 times. That implies a share price of $154, which implies 37% upside from its current price of $112. Admittedly, there are high expectations baked into my prediction, but it's less aggressive than Radke's target of $175 per share. 2. Advanced Micro Devices Advanced Micro Devices (AMD) is a semiconductor company that designs chips in four end markets: data centers, client (personal laptops and desktops), gaming, and embedded processors. The company is best known for central processing units (CPUs) and graphics processing units (GPUs), both of which support AI workloads. AMD in recent years has gained substantial CPU market share in personal computers and data center servers. Those market share gains have come at Intel 's expense, and investors should expect more of the same in the coming years as AMD continues to bring new Ryzen chips (personal computers) and Epyc processors (data centers) to market. However, AMD has struggled to compete with Nvidia in the data center GPU market. In fact, Nvidia accounted for 98% of data center GPU shipments in the last two years. However, while AMD has no chance of catching the leader, it may gain market share as production of its latest Instinct GPU (MI350) ramps in mid-2025. Those chips are purpose-built for AI. AMD reported reasonably good financial results in the fourth quarter. Revenue increased 24% to $7.6 billion and non-GAAP earnings increased 42% to $1.09 per diluted share. CEO Lisa Su told analysts data center AI sales would grow from $5 billion in 2024 to "tens of billions of dollars of annual revenue over the coming years." The market is currently too pessimistic where AMD is concerned. Jim Kelleher at Argus wrote in a recent note, "In our view, AMD's beaten-down share price does not fully reflect the company's long-term revenue and margin growth potential, and its ongoing market share gains at Intel's -- and potentially Nvidia's -- expense." Wall Street expects AMD's adjusted earnings to increase 37% in 2025. That makes the current PE multiple of 30 times look downright cheap. If earnings align with expectations and the market affords AMD a slightly higher valuation multiple, the stock could certainly return 60% in the next year. But AMD could achieve a market value of $220 billion (which implies 37% upside) even its PE ratio remains unchanged. Should you invest $1,000 in Shopify right now? Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $765,576!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of February 28, 2025 Citigroup is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Nvidia, Palantir Technologies, and Shopify. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Intel, Nvidia, Palantir Technologies, and Shopify. The Motley Fool recommends the following options: short February 2025 $27 calls on Intel. The Motley Fool has a disclosure policy.
Yahoo
03-03-2025
- Business
- Yahoo
Prediction: 2 AI Stocks Will Be Worth More Than Palantir Technologies Within a Year
Palantir Technologies stock returned 240% in the past year, bringing its market value to $199 billion as of March 2. But certain Wall Street analysts think Shopify (NYSE: SHOP) and Advanced Micro Devices (NASDAQ: AMD) will top that figure within a year. Tyler Radke at Citigroup has set Shopify with a target price of $175 per share. That implies 56% upside from its current share price of $112. It also implies a market value of $228 billion. Jim Kelleher at Argus has set Advanced Micro Devices with a target price of $160 per share. That implies 60% upside from its current share price of $100. It also implies a market value of $259 billion. Those forecasts may be too aggressive, but I do believe Shopify and AMD can achieve $200 billion market values within 12 months, topping what Palantir is currently worth in the process. Here's why. Shopify offers a turnkey solution for retail. Its software helps sellers run their businesses across physical and digital stores. Shopify also provides adjacent financial services for payments processing, bill payments, tax filing, and account management. And it supports merchants with solutions for marketing, logistics, wholesale, and cross-border commerce. The company two years ago introduced Shopify Magic, a suite of artificial intelligence (AI) tools that can draft product descriptions, edit images, and surface business insights. Shopify also uses AI internally to support its sales, customer service, and human resources teams. President Harley Finkelstein on the fourth-quarter earnings call told analysts, "Shopify will very much be one of the major beneficiaries in this new AI era." Anthony Chukumba at Loop Capital views Shopify as an underappreciated AI stock. "We believe Shopify will be able to grow its revenue at a much faster rate than its operating expenses for the foreseeable future, which will result in operating and free cash flow margin expansion and a higher valuation," he wrote in a note to clients in December. Shopify reported mixed results in the fourth quarter, missing estimates on the bottom line. Revenue increased 31% to $2.8 billion, the second consecutive sequential acceleration, and non-GAAP earnings increased 29% to $0.44 per diluted share. Also, Shopify reported a 10-basis-point increase in take rate, meaning merchants are engaging more deeply with its adjacent services. Importantly, Shopify accounted for 12% of retail e-commerce sales in the U.S. last year, up from 10% in the prior year, meaning it gained two percentage points of market share. That makes Shopify the second largest domestic e-commerce company behind Amazon, and management expects further market penetration in the coming year. Wall Street thinks Shopify's adjusted earnings will increase 20% in 2025. That makes the current price-to-earnings (PE) multiple of 88 looks expensive. But management guided for mid-20% sales growth in the first quarter, which makes the consensus estimate look low. And the company beat the consensus earnings estimate by an average of 24% in the past six quarters. If that pattern continues, Shopify could attain a $200 billion market value while its PE multiple fell to a slightly more reasonable 82 times. That implies a share price of $154, which implies 37% upside from its current price of $112. Admittedly, there are high expectations baked into my prediction, but it's less aggressive than Radke's target of $175 per share. Advanced Micro Devices (AMD) is a semiconductor company that designs chips in four end markets: data centers, client (personal laptops and desktops), gaming, and embedded processors. The company is best known for central processing units (CPUs) and graphics processing units (GPUs), both of which support AI workloads. AMD in recent years has gained substantial CPU market share in personal computers and data center servers. Those market share gains have come at Intel's expense, and investors should expect more of the same in the coming years as AMD continues to bring new Ryzen chips (personal computers) and Epyc processors (data centers) to market. However, AMD has struggled to compete with Nvidia in the data center GPU market. In fact, Nvidia accounted for 98% of data center GPU shipments in the last two years. However, while AMD has no chance of catching the leader, it may gain market share as production of its latest Instinct GPU (MI350) ramps in mid-2025. Those chips are purpose-built for AI. AMD reported reasonably good financial results in the fourth quarter. Revenue increased 24% to $7.6 billion and non-GAAP earnings increased 42% to $1.09 per diluted share. CEO Lisa Su told analysts data center AI sales would grow from $5 billion in 2024 to "tens of billions of dollars of annual revenue over the coming years." The market is currently too pessimistic where AMD is concerned. Jim Kelleher at Argus wrote in a recent note, "In our view, AMD's beaten-down share price does not fully reflect the company's long-term revenue and margin growth potential, and its ongoing market share gains at Intel's -- and potentially Nvidia's -- expense." Wall Street expects AMD's adjusted earnings to increase 37% in 2025. That makes the current PE multiple of 30 times look downright cheap. If earnings align with expectations and the market affords AMD a slightly higher valuation multiple, the stock could certainly return 60% in the next year. But AMD could achieve a market value of $220 billion (which implies 37% upside) even its PE ratio remains unchanged. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $765,576!* Now, it's worth noting Stock Advisor's total average return is 890% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of February 24, 2025 Citigroup is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Nvidia, Palantir Technologies, and Shopify. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Intel, Nvidia, Palantir Technologies, and Shopify. The Motley Fool recommends the following options: short February 2025 $27 calls on Intel. The Motley Fool has a disclosure policy. Prediction: 2 AI Stocks Will Be Worth More Than Palantir Technologies Within a Year was originally published by The Motley Fool Sign in to access your portfolio
