ETN Stock Forecast: Sustainable Drivers Propel Eaton’s Record First Quarter Performance into a Promising Future

May 8, 2024
Meiru ZhongThis ETN Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • Eaton achieved a first-quarter record with sales of $5.9 billion, up 8% over the same period in 2023. Operating margin was 23.1%, a year-over-year increase of 340 basis points. 
  • In Q1’2024, Eaton announced 42 megaprojects totaling over $130 billion. Growth in megaprojects in North America supports Eaton’s strategic development.
  • By the end of 2023, Eaton had a quite high rate of percentage of accounts receivable to revenue, reaching 19%. Its free cash flow rose back to the pre-pandemic level, arriving at 2.87 billion, up 48% from 2022.
  • Projects under $1 billion in the nonresidential construction market also grew by 10% through the first quarter of 2024. This segment is projected to exceed $500 billion in 2024, taking up 50% of the U.S. market.
  • Focus on sustainability drives the increase in global infrastructure spending on clean energy programs. It will drive the industrial end market to grow by about 7% from 2023 to 2026

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LRCX Stock Forecast: Embracing Double-Digit Growth

March 22, 2024
Meiru ZhongThis LRCX Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • The decreased sales of wafer fabrication equipment (WFE) were mainly driven by the weakened customer demand, especially in the memory market, and trade restrictions on sales of specific products and services to China.
  • By the end of the December quarter of 2023, LRCX earned a total revenue of $3.76 billion, reduced by 28. 8%. Its system revenue dropped by 35.2% and customer support-related revenue decreased by 15.7% compared with the last December quarter.
  • The company differentiates products and services by focusing on multiple available market expansion opportunities and gets closer to customers by processing development capabilities near customers and manufacturing, including the Malaysia facility.
  • Lam Research has outperformed and remained resilient in spite of the slowing economy, as the revenue growth rate is almost double the growth rate expected by the World Semiconductor Trade Statistics.
  • DCF Values LRCX at $1,023, an upside potential of 8% compared with the stock price of $949.08 on March 20, 2024.

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SAIA Stock Forecast: Thriving in the Post-Yellow Corp. Era

January 31, 2024
Meiru ZhongThis SAIA Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • Yellow Corp., the third-largest player in the LTL industry, filed for bankruptcy in July 2023, presenting an opportunity for SAIA to expand its business and increase sales by tapping into its market share.
  • Saia's Q3'23 financial report showed robust performance, marked by significant increases in LTL volume and tonnage.
  • Flat operating margins reflected rising expenses, particularly in salaries, wages, and employee benefits. The company increased transportation miles and workforce utilization to manage costs.
  • Saia demonstrated financial strength with a current ratio of 2.16 and debt-to-EBITDA ratio of 0.24, outperforming peers in the LTL industry. Its sufficient capital resources facilitated its strategic expansion and sustained operation.
  • DCF supports the $511 target stock price for Saia, Inc., 13% upside potential from the January 29, 2024 price of $450.15.

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BLK Stock Forecast: Strengthening a Dominant Position in the Investment Landscape

January 24, 2024
Sergey Okun This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

Summary:

  • iShares Bitcoin Trust ETF has attracted nearly half of the spot Bitcoin ETF inflows.
  • Acquisition of GIP opens access to lucrative prospects in the growing $1 trillion infrastructure market.
  • The stock recommendation is a “Buy”..

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AMD Stock Forecast: Overcoming Challenges and Embracing

December 25, 2023
Meiru ZhongThis AMD Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • AMD faced challenges in the first nine months of 2023, with lower sales of key processors and increased R&D investment, partially offset by positive contributions from Radeon GPU sales, product mix adjustments, and the inclusion of Xilinx.
  • AMD's strategic focus on high-performance and adaptive computing technology, reflected in a $4.4 billion investment in R&D for the nine months of 2023.
  • AMD’s Q3 2023 highlighted a strong cash position of $5.8 billion for future stock buyback and a robust industry outperformance.
  • DCF valued AMD at $143, a 6% upside potential compared to $135.47 on December 20, 2023. 

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V Stock Forecast: Swiping into the Future.

December 18, 2023
Milana PapadopoulouThis V Stock Forecast article was written by Milana Papadopoulou – Financial Analyst at I Know First.

Highlights

  • The stock has grown 23.69% since the beginning of 2023.
  • DCF valuation suggests the stock’s incremental price is $308.98, above the current market price.
  • The stock is a "Buy" in the short term and a "Strong Buy' in the long term.

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NVDA Stock Forecast: Will the Company Powering OpenAI Keep Up the Pace?

November 8, 2023
Milana PapadopoulouThis NVDA Stock Forecast article was written by Milana Papadopoulou – Financial Analyst at I Know First.

Summary

  • NVIDIA’s shares soared nearly 260% in one year.
  • The company posted record earnings in Q2 2023 and is expected to top that in Q3.
  • However, DCF and comparable companies’ analysis suggests that the company may be overvalued.

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