Latest news with #MPWR
Yahoo
11 hours ago
- Business
- Yahoo
Here's Why Monolithic Power (MPWR) is a Strong Growth Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike. Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term. Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth. Monolithic Power Systems, based in Kirkland, WA, designs, develops and markets high-performance power solutions. The company focuses on the market for high-performance analog and mixed-signal integrated circuits (ICs). MPWR is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 21% year-over-year for the current fiscal year, with sales growth of 20.8%. Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.11 to $17.08 per share. MPWR also boasts an average earnings surprise of 2.2%. Monolithic Power is also cash rich. The company has generated cash flow growth of 33.4%, and is expected to report cash flow expansion of 16% in 2025. MPWR should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Monolithic Power Systems, Inc. (MPWR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
06-06-2025
- Business
- Yahoo
3 High-Flying Stocks to Target This Week
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change. Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. Keeping that in mind, here are three high-flying stocks with strong fundamentals. Forward P/E Ratio: 39.7x Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. Why Is MPWR a Top Pick? Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle Strong free cash flow margin of 29.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute Stellar returns on capital showcase management's ability to surface highly profitable business ventures Monolithic Power Systems is trading at $682.20 per share, or 39.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it's free. Forward P/E Ratio: 36x Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation. Why Should You Buy TDG? Core business is healthy and doesn't need acquisitions to boost sales as its organic revenue growth averaged 14.9% over the past two years Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 30.8% outpaced its revenue gains Robust free cash flow margin of 19.7% gives it many options for capital deployment, and its improved cash conversion implies it's becoming a less capital-intensive business TransDigm's stock price of $1,444 implies a valuation ratio of 36x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Forward P/E Ratio: 30.1x Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments. Why Do We Love PSTG? ARR trends over the past two years show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.9% over the last five years outstripped its revenue performance PSTG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety At $54.01 per share, Pure Storage trades at 30.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
MPWR Q1 Earnings Call: Market Diversification and New Design Wins Drive Revenue Beat
Power management chips maker Monolithic Power Systems (NASDAQ:MPWR) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 39.2% year on year to $637.6 million. The company expects next quarter's revenue to be around $650 million, close to analysts' estimates. Its non-GAAP profit of $4.04 per share was 0.8% above analysts' consensus estimates. Is now the time to buy MPWR? Find out in our full research report (it's free). Revenue: $637.6 million vs analyst estimates of $633.3 million (39.2% year-on-year growth, 0.7% beat) Adjusted EPS: $4.04 vs analyst estimates of $4.00 (0.8% beat) Adjusted EBITDA: $233 million vs analyst estimates of $229.7 million (36.5% margin, 1.4% beat) Revenue Guidance for Q2 CY2025 is $650 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: 26.5%, up from 20.9% in the same quarter last year Free Cash Flow Margin: 30.1%, down from 50.7% in the same quarter last year Inventory Days Outstanding: 146, up from 138 in the previous quarter Market Capitalization: $35.16 billion Monolithic Power Systems delivered revenue above Wall Street's expectations for Q1, with management highlighting the impact of broad-based demand across storage, computing, and automotive segments. CEO Michael Hsing attributed the quarter's results to strong design win momentum, especially in enterprise data and automotive, and emphasized the company's ongoing transformation from a chip supplier to a full-service silicon solutions provider. CFO Bernie Blegen also noted the positive contribution of new product ramps and an improved operating margin compared to last year. Looking ahead, management pointed to continued investment in technology and supply chain diversification as key drivers for the rest of the year. Michael Hsing described growing confidence in the second half due to a backlog of design wins, particularly in enterprise data and automotive, but acknowledged some uncertainty in the timing and magnitude of customer ramps. The company expects revenue for the next quarter to remain steady, with margins influenced by product mix and ongoing supply chain adjustments. Management emphasized that the company's diversified strategy and design wins were central to Q1's performance and set the stage for future growth across several end markets. Enterprise Data Momentum: Management cited broad-based design wins and ramping qualifications with major customers, positioning the company for increased enterprise data revenue later this year. Michael Hsing stated that while visibility is improving, the major ramps are expected in the second half. Automotive Content Expansion: The automotive business posted its third consecutive quarter of double-digit sequential growth. Management credited this to increased content per vehicle, particularly from new power management modules supporting next-generation vehicle platforms in North America and Europe. Storage & Computing Upswing: Segment revenue increased sharply due to both memory and notebook demand. Management said growth was balanced across memory types (like DDR5) and end-user devices, and that results were driven by design wins rather than inventory build-up. Supply Chain Diversification: The company's multi-year effort to localize manufacturing and R&D across regions has improved resilience to tariffs and geopolitical risks. Hsing explained that post-pandemic capacity expansions outside China now support both China and global customers. Transformation to Solutions Provider: Management reiterated its strategy of evolving from a chip-only supplier to a provider of complete silicon-based solutions, including system-level modules for building automation and medical devices. Early customer engagement on these new products was described as encouraging for long-term growth. Management expects steady performance in the upcoming quarter, with future growth dependent on new product qualifications, customer ramps, and continued diversification across end markets. Design Win Ramps: Many recent design wins in enterprise data and automotive are expected to translate into higher revenue later in the year, though the precise timing of customer adoption remains uncertain. Product Mix and Margins: Future margins will be affected by the mix of new versus mature products. Management aims to maintain margins within historical ranges, despite pressure from high-volume, lower-margin products. Supply Chain and Tariffs: Ongoing efforts to diversify manufacturing and R&D are intended to reduce exposure to tariffs and supply interruptions, but shifts in global trade policy or customer behavior could still introduce risks. Tore Svanberg (Stifel): Asked if the current quarter marks a low point for enterprise data and how supply chain diversification is impacting competitiveness; management indicated improved confidence and highlighted the benefits of local manufacturing outside China. Quinn Bolton (Needham): Sought details on the narrowing of enterprise data outlook and the impact of a customer's platform change; management maintained a wide forecast range but expressed confidence due to recent product qualifications. Ross Seymore (Deutsche Bank): Questioned potential segment volatility and customer order behavior related to tariffs; management reported consistent demand and minimal pull-in/push-out effects. Rick Schafer (Oppenheimer): Inquired about timing for significant rack power solution revenue and automotive content drivers; management expects material rack power revenue in 2026 and noted automotive growth is content-driven across multiple regions. William Stein (Truist): Asked about direct tariff impacts and the long-term shift to full-system solutions; management said tariffs are not directly affecting unit costs and described positive customer response to new system-level products. In the next few quarters, the StockStory team will be watching (1) how quickly enterprise data and automotive design wins convert into meaningful revenue, (2) the pace of new product ramps in storage and computing without inventory build-up, and (3) progress in supply chain localization amid shifting trade policies. The company's ability to launch and scale its system-level solutions will also be a critical indicator of its transformation strategy. Monolithic Power Systems currently trades at a forward P/E ratio of 41.4×. Should you load up, cash out, or stay put? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
02-05-2025
- Business
- CNBC
Wall Street loves this under-the-radar Nvidia derivative play
Solid first-quarter results were just the catalyst that analysts on Wall Street needed to continue singing the praises of Monolithic Power Systems — a key Nvidia partner. Monolithic reported earnings per share of $4.04 on revenue of $637.6 million in the first quarter, while analysts polled by FactSet were looking for $4.01 per share and $634.2 million. The Kirkland, Washington-based maker of integrated circuits issued a better-than-expected second-quarter outlook, forecasting revenue in the range of $640 million to $660 million. Analysts' consensus estimates had called for revenue of $635.6 million in the current quarter. The company specializes in power solutions for semiconductor-specific needs, developing integrated circuits for power management in areas such as cloud computing and telecommunications. Monolithic's power management processes are an aid in Nvidia's graphic processing units (GPUs) and are a pillar of AI applications. Monlothic shares have held steady so far in 2025, rising about 1%, while Nvidia stock has lost about 15%. MPWR NVDA YTD mountain Monlothic Power stock in 2025. Oppenheimer analyst Rick Schafer lauded Monolithic's first-quarter results, and reiterated an outperform rating on the stock on Thursday. Schafer's $700 per share price target implies more than 16% upside from Thursday's $601.93 close. "A deep product pipeline and steady flow of design wins have steadily diversified MPWR away from traditional consumer products and into the communications, industrial, automotive and networking markets," Schafer wrote report after Monlothic's results. "MPWR sets up well to outperform the broader semiconductor market with both an improving margin profile and an accelerating top-line outlook, in our view." Loop Capital analyst Gary Mobley similarly stood by his buy rating on Monolithic, alongside a $760 per share price target, which would amount to 26% upside. The analyst noted that even if Nvidia loes market share, Monolithic should still be able to see gains. "We see MPWR as perennial market share gainer in the voltage regulator, data converter and power semi market, winning share against less nimble, catalog-oriented general-purpose focused competitors," Mobley said. He specifically pointed to storage and compute, automotive and communications as segments where Monolithic could expand market share. TD Cowen analyst Joshua Buchalter also pointed to storage and compute as a potential growth driver for Monolithic, saying he expects the company to issue a dividend and authorize a share buyback in the near future. Buchalter has a buy rating and a$760 per share price target on the stock. "Monolithic Power Systems (MPS) represents one of the most attractive organic growth stories in the semiconductor industry, having consistently posted above-market growth for the last five years+," the analyst said. "We believe MPS's differentiated approach and upcoming product cycle ramps will allow the company to maintain, or possibly accelerate, this outsized growth rate, driving continued upward earnings revisions."
Yahoo
15-04-2025
- Business
- Yahoo
Stock Market News for Apr 14, 2025
Despite rising U.S.-China tariff tensions, Wall Street closed higher on Friday amid inflation concerns and market volatility. The Nasdaq Composite, the Dow and the S&P 500 ended in positive territory. The Dow Jones Industrial Average (DJI) rose 1.6%, or 619.05 points, to close at 40,212.71. Twenty-six components of the 30-stock index ended in positive territory, while four ended in tech-heavy Nasdaq Composite advanced 337.15 points, or 2.1%, to close at 16, S&P 500 gained 95.31 points, or 1.8%, to close at 5,363.36. All 11 broad sectors of the benchmark index closed in the green. The Materials Select Sector SPDR (XLB), the Energy Select Sector SPDR (XLE) and the Technology Select Sector SPDR (XLK) rose 3%, 2.5% and 2.1%, major gainer in the S&P 500 Index was Monolithic Power Systems, Inc. MPWR, whose shares rose 10%. Monolithic Power Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks fear gauge CBOE Volatility Index (VIX) decreased 7.8% to 37.56. A total of 19.19 billion shares were traded on Friday, lower than the last 20-session average of 18.74 billion. The S&P 500 posted one new 52-week high and five new lows. The Nasdaq Composite recorded 21 new highs and 147 new lows. The U.S.-China trade dispute intensified when Beijing raised its import tariffs to 125% because of U.S. duty increases on Chinese products, which resulted in 145% effective tariffs between the two nations. The situation has intensified pressure on worldwide University of Michigan recorded a consumer sentiment reading of 50.8 in April, marking the lowest point since June 2022 due to rising concerns about inflation. The U.S. Bureau of Labor Statistics showed that the Producer Price Index (PPI) for final demand decreased by 0.4% in March, following a 0.1% rise in February, but the core PPI increased by 0.3%, which showed ongoing price now expect the Federal Reserve to lower interest rates in December because of tariff effects on prices. The ongoing trade tensions combined with increasing inflation risks have maintained high economic uncertainty. During last week, the S&P 500 climbed 5.7%, marking its best week since November 2023. The Nasdaq jumped 7.3% for its strongest weekly gain since November 2022, while the Dow rose nearly 5%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Monolithic Power Systems, Inc. (MPWR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
