KEYS - buy and holdSector: Industrials
Sub-Sector: Industrial Machinery & Equipment
Keysight Technologies, Inc. is a measurement company engaged in providing electronic design and test solutions to communications and electronics industries. 5G test solutions as one example, automated driving another testing solution, IoT and high-speed data centers another. Keysight generated revenues of $3.2B in fiscal year 2017. In April 2017, Keysight acquired Ixia, a leader in network test, visibility, and security. More information is available at keysight.com.
Liked the MACD on this one and rare to see here, as everyone is looking for short or mid-term trades. 12.3B company with 5.8B assets and 1.7B profits on 3.2B in 2017, so 12.3B means sales growth. No dividend.
Growth-stocks
AMD mid-term fundamental and technical guidance There is no doubt AMD under the leadership of Lisa Su and the advantages of its IPs is on track for high growth by gaining market share on Intel and staying relevent if not competitive against Nvidia. AMD's P/B ratio is significantly lower than similar stock and PE ratio is also lower than the average in the industry. AMD also sees very high revenue growth as well as earning beats and guidance beats above industry average that are likely to continue due to its robust product refreshes. With that said, lets look at the technical.
AMD has been oversold due to crypto scare and stock downgrade manipulation, which allows for a significant upside for the undervalued stock and allows for an incredible upside. The recent gains also provides a great entry point as the bull trend is established after the amazing Q2 earnings and a break out looks ripe.
Range bound analysis sees an immediate resistance above 13$ at the downward trend line(last ditched effort for shorts), but a more than likely blowout Q2 announcement around end of july will crush that bearish bias and squeeze the shorts to test the recent highs around 15.
15 would be a fair value for AMD by the time Q3 comes out(provided with a decent market sentiment). More than a 30% upside for those with the patience. At least a 15% upside to 13$ in the near term.
Disclosure: I doubled my money with call options bought before Q2 after losing 30% by buying before Q1. Has a mixed portion of stock and options now.
Suggested strategy: Sell the stock and buy options when AMD stock dips and sell option to buy stock as AMD rally to major resistance levels.
THE FUNDAMENTAL LONG PICTURE FOR ALIBABA (BABA)China’s economy is growing at a 6-7% annual rate and is on track to pass the United States as the largest economy in the world within the next decade or two. China’s middle class is made up of 1.3 billion individuals and those individuals are beginning to shop online a lot! In this scenario it only makes sense to own stock in the most dominant Chinese e-commerce company, Alibaba.
You have probably heard of Alibaba referred to as the Amazon (AMZN) of China. The similarities between Alibaba and Amazon don’t stop at online retail. Alibaba, like Amazon, also has a dominant and rapidly growing cloud computing business. In Q4, 2017 its cloud business grew by 104% YoY.
Aside from its already impressive e-commerce and cloud computing businesses, Alibaba also owns a portion of a rapidly growing fintech company called Ant Financial. We think Alibaba is well positioned for the next decade! The e-commerce, cloud computing, and the mobile payment industries should continue to see plenty of growth!
Alibaba’s stock is currently trading at forward-PE of 26. Analysts have forecasted a 5-year EPS growth rate of 29%, assigning Alibaba a PEG of 0.9.
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