The Best Thing To Invest In Right Now – You are reading a free article whose opinions may differ from those of The Motley Fool’s Premium Investing Services. Become a Motley Fool member today for instant access to our premium analyst recommendations, in-depth research, investment resources, and more. know more
Shares of Micron Technology (MU 0.16%) were on fire in 2021. Despite facing some volatility amid a selloff in tech stocks, it has significantly outperformed returns in the broader market, and the company’s latest quarterly results clearly show why.
The Best Thing To Invest In Right Now
The memory specialist’s fiscal second-quarter 2021 revenue and earnings topped Wall Street estimates and came in at the upper end of Micron’s guidance range. Additionally, the company’s third-quarter forecast beat expectations and indicates that the company isn’t running out of steam anytime soon, making it an ideal choice for investors looking to buy growth stocks right now. Let’s take a closer look at the reasons why Micron remains a solid buy, even though its stock has more than doubled in the past year.
Best Stocks To Invest In Right Now? 5 Value Stocks To Watch This Week
In the second quarter of fiscal 2021, which ended March 4, Micron Technology’s revenue rose 30% year-over-year to $6.24 billion and adjusted earnings more than doubled to $0.98 up from $0.45 per share a year earlier. The chipmaker also enjoyed impressive margin growth thanks to rising memory prices and falling costs. Its non-GAAP gross margin increased by 3.8 percentage points to 32.9% compared to the previous year.
All of those numbers were at the high end of Micron’s recently updated guidance range, which calls for earnings of $0.93 to $0.98 per share on revenue of $6.20 billion to $6.25 billion. Its adjusted gross margin is expected to be between 32% and 33%.
The good news for Micron investors is that the company’s margin growth is expected to accelerate. The chipmaker expects a non-GAAP gross margin of 41.5% this quarter, which would be a huge jump from 33.2% in the prior period. In fact, Micron’s gross margin performance could improve even more this fiscal year as its DRAM (dynamic random access memory) business is expected to see more cost reductions than previously expected.
At the same time, Micron’s management predicts that the supply-demand imbalance in the DRAM and NAND flash memory markets will continue to worsen, so manufacturers may raise prices further. “Due to strong demand and limited supply, the DRAM market is currently facing a severe supply shortage, leading to a rapid increase in DRAM prices,” says CEO Sanjay Mehrotra. “We see the DRAM market continuing to tighten throughout the year.”
Looking For The Best Stocks To Invest In Right Now? Here’s Five
The DRAM segment accounted for 71% of Micron’s sales in the last quarter, so the favorable supply and demand dynamics in this market could be a tailwind for the company. Micron expects demand for DRAM bits to grow 20% in 2021, higher than previous expectations for growth in the teens.
Demand for NAND flash bits is expected to grow in the low to mid 30% range, exceeding the company’s previous forecast of 30%. According to Micron, NAND prices are expected to remain stable in the near term, but efforts by memory industry players could lead to an improved price environment. Therefore, Micron predicts lower than industry supply growth in 2021 for both DRAM and NAND.
The positive effect of all these tailwinds can be seen in Micron’s guidance. The chipmaker expects revenue of $7.1 billion in the current quarter, a jump of more than 31% compared to the same quarter last year. It’s delivering huge margin growth, and it’s no surprise that the company expects adjusted earnings per share to jump to $1.62 this quarter from $0.82 per share a year ago.
Micron Technology will generate strong top-line and bottom-line growth in the near term, but there is reason to believe that the company will enjoy a favorable demand and pricing environment over the long term.
How To Invest In Stocks: Best Ways For Beginners To Get Started
Micron’s management predicts that long-term demand for DRAM bits will grow by a percentage in the mid-teens per year. Demand for NAND bits is expected to grow at a compound annual rate of 30% over the long term. Rising demand for memory chips used in data centers, smartphones, personal computers, graphics processors, and vehicles is expected to fuel this impressive long-term growth.
Given that memory industry players have scaled back capital spending over the past three years, the market is likely to remain undersupplied for some time to come. IC Insights estimates Micron has cut DRAM spending to $3.6 billion in 2020 from $4.4 billion in 2018, while Samsung reportedly cut it from $8.1 billion in 2018 to $4.9 billion last year the investment cost.
The huge increase in demand did not encourage the participants to significantly increase their investments. Micron, for example, has budgeted $9 billion in capital spending for fiscal 2021, an increase of just 13% year-over-year, which pales in comparison to the expected huge increase in demand for bits.
In conclusion, Micron Technology is poised for multi-year growth due to favorable conditions in the memory market. All of this makes Micron an ideal bet for investors looking to buy growth stocks to hold onto for the long term, especially as it trades at a reasonable 18x earnings despite its rapid growth rate.
Best Board Games: What To Play In 2023
Harsh Chauhan has no position in any of the mentioned stocks. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a privacy policy.
Why should you avoid Micron stock even though Micron has good prospects as a company thanks to AI, servers have just taken over smartphones in this key market? The 2 Biggest Stocks to Buy That Can Double Your Money Better are Semiconductor Stocks: Micron vs. TSMC
10 years ago I wouldn’t have touched this stock with a 10 foot pole – now I can’t stop buying the 2 stocks that could join Apple, Alphabet and Microsoft in the $1 trillion QuantumScape club, just do something about Tesla. That’s because US Bancorp shares are down 15.1% this week
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance and more from The Motley Fool’s premium services. Today we guide you to buy the best cryptocurrency for definite and higher returns. In fact, cryptocurrency trading is subject to higher market risk. You may suffer a big loss if you invest at a higher peak.
The Best Stocks To Invest In Right Now? 3 Penny Stocks To Watch
I have shared the top 10 cryptocurrencies to invest in and a list of the best exchange tokens that barely fluctuate over time. Exchange tokens are backed by the exchange itself. Let’s say someone trades with BNB tokens, then the loss is very rare.
Because the exchange token creates its own usability by offering more offers, such as paying lower fees for trading BNB coin. Exchange tokens have huge backend support. So chances of loss with these tokens are rare.
If someone is looking for a long-term investment, I would like to suggest investors to exchange tokens. However, to earn fast, you need to rely on reliable cryptocurrencies that have a lower risk of loss.
In fact, cryptocurrencies are traded in different time intervals. Most people like to trade 1 second, 3 hours, 15 hours, 1 minute, 3 months, 5 hours, 15 hours, 30 hours, 1 hour, 2 hours, 4 hours, 1 day, 2D, 4D, 1 week, 2 hours, 1 month, 3 months, 6 hours, etc.
What Is The Best Cryptocurrency To Invest In Right Now?
So it is predictable every time that they will invest at a low price and their earnings will return after the price rises. Today we are going to tell you the best cryptocurrencies you can buy right now to make a profit from them.
We post an article here and it takes a long time to rank on Google. Cryptocurrency predicted today may be a loss tomorrow. So every month I have selected some coins that you can buy and earn good money.
Pro Tip: All you have to do is check the 1 and 2 hour charts here to make sure you are buying at the bottom. You can use the MACD chart to do this.
Here is the list of best cryptocurrencies for every month like January, February, March, April, May, June, July, August, September, October, November, December. I will share a period when these cryptocurrencies were trading in a low price range.
These Are The 7 Best Stocks To Invest In Right Now
You need to find the current date and select the crypto column to buy that cryptocurrency. Let’s say today is June 19, then you can buy Ethereum and Tether immediately.
We’re not saying you can’t shop here on other dates, but this time of the month looks cute for everyone. So always try to invest some amount on these dates to book more profit.
Always sell coins when profitable and keep coins in fiat coins and stable coins like BUSD, DAI, USDT and other fiat currencies INR, USD, AUD, EUR etc.
Hello, this is it
Best Tech Stocks To Buy Now
What's the best thing to invest in right now, what is the best thing to invest in right now, best place to invest right now, best industries to invest in right now, what to invest in right now, best place to invest money right now, best thing to invest in right now, best thing to invest in right now on robinhood, the best stocks to invest in right now, best thing to invest in stocks right now, best place to invest cash right now, best to invest in right now