Tech Stocks to Buy: Mobileye (MBLY)
Mobileye NV (NYSE:MBLY) produces cutting-edge advanced driver assistance systems (ADAS) and autonomous driving technology. Mobileye’s EyeQ chips interpret visual data, including lanes, traffic signs and barriers, and process it, helping drivers avoid collisions.
Mobileye also produces mapping technology, competing with Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), Baidu Inc (ADR) (NASDAQ:BIDU), Tesla Motors Inc (NASDAQ:TSLA) and Nvidia Corporation (NASDAQ:NVDA). Unlike Alphabet, Baidu and Nvidia, Mobileye is a pure play, focusing on car technology, without other businesses. Those who believe in the economic potential of next-generation cars can buy Mobileye stock to gain exposure to the field.
A stunning 90% of the world’s automakers use MBLY technology. Mobileye commands an impressive 75.5% gross margin and a 29.1% profit margin. Analysts expect MBLY to grow earnings at a 47.95% CAGR over the next five years.
Mobileye stock, down 18.4% from its 52-week high, still trades at 104 times earnings, 40 times forward earnings and 14 times book value. On the other hand, Mobileye has no debt, and the combination of high margins, market leadership and strong growth prospects should propel MBLY stock going forward.