![]() ![]() The analyst adds that demand also should be supported by the U.S. "We see upside to estimates driven by two trends: 1) AMAT continuing to gain market share in process control, more specifically wafer inspection and e-beam technology with leading-edge customers, and 2) demand from foundry/ logic capacity expansions evident in Intel's higher capex guidance and Samsung's plans to triple its foundry capacity by 2026," says CFRA analyst Keven Young. (opens in new tab)ĬFRA recently added Applied Materials to its favorite chip stocks to invest in, upgrading shares from Buy to Strong Buy. Sign up for Kiplinger's FREE Closing Bell e-letter: Our daily look at the stock market's most important headlines, and what moves investors should make. The boom in the importance of data centers, 5G, and the Internet of Things (IoT) has kept demand for AMAT's products strong. The California-based integrated circuit producer has been integral to the domestic tech industry, as the majority of chip manufacturing is located in Taiwan and elsewhere overseas. TipRanks consensus price target: $175.84 (10% upside potential)Ī perfect storm materialized for the semiconductor industry over the past couple years: a digital transformation and ecommerce boom for electronics combined with shipping backlogs and work shortages.Īmong the beneficiaries has been Applied Materials ( AMAT, $159.64).See which other analysts are in the Schwab Buy camp on TipRanks. Wall Street is plenty bullish in general, with eight of 10 covering analysts issuing Buy calls on SCHW over the past three months. ![]() "Areas where SCHW could flex its muscle on the competition include: options pricing, payment for order flow (PFOF) practices, deposit pricing as well as asset management products (both third party and advice services)," Jefferies' analyst team says. Jefferies also calls Schwab a "top pick" among brokers, asset managers and exchanges. Bedell's $120 PT would see Schwab shares return another 40% from current prices. He also sees much more upside to shares than the analyst average price target, which implies 10% returns over the next 12 months. SCHW shares, which are poised to finish 2021 up by about 60% or so, aren't expected to have as explosive a 2022, but they're still among the pros' favorite stocks to invest in.ĭeutsche Bank's Brian Bedell, who calls SCHW stock a "top pick," is encouraged by Schwab's "balanced focus on organic growth, client service, merger integration," as well as its "ability to generate significant financial operating leverage to higher interest rates and client asset growth." One firm that has done particularly well is Charles Schwab ( SCHW (opens in new tab), $85.50), which is involved in both these services, as well as wealth management. Banks can earn even more on their lending products (think mortgages and car loans), and services firms that make money from trading volumes will collect more in fees. TipRanks consensus price target: $95.80 (10% upside potential)įinancial stocks can thrive in an environment of rising interest rates and high liquidity.
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