7 Stocks That Ordinary Investors Can’t Get Enough Of Right Now


  • Novo Nordisk (NVO): Novo Nordisk continues to ride the wave of its obesity drugs.
  • Leidos (LDOS): Leidos commands multiple critical relevancies.
  • Silicon Laboratories (SLAB): Silicon Laboratories offers multiple solutions for connectivity-related systems.
  • Read more about these popular stocks to consider today!
Popular Stocks Among Retail Investors - 7 Stocks That Ordinary Investors Can’t Get Enough Of Right Now

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In an ecosystem where individuality is celebrated and groupthink is criticized, it may seem imprudent to target popular stocks among retail investors. However, putting minds together can often yield lucrative discoveries and opportunities.

For one thing, it’s always nice to get other people’s opinions to avoid thinking in an echo chamber. More importantly, collective analyses may be right more often than not. In the gameshow “Who Wants to be a Millionaire?” asking the audience apparently yields the correct answer the vast majority of the time.

With that being (potentially) the case, going along with the crowd might not be such a bad idea after all. Below are popular stocks among retail investors as filtered by TipRanks’ Investor Sentiment screener.

Novo Nordisk (NVO)

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Operating in the biotechnology space, Novo Nordisk (NYSE:NVO) engages in the research, development, manufacture and distribution of pharmaceutical products in Europe, North America and other international markets. It operates in two segments: Diabetes and Obesity Care and Rare Diseases. Naturally, both business units provide critical solutions. However, it’s the former category that has seemingly garnered all the attention.

That’s because Novo Nordisk is busy churning out its blockbuster obesity therapeutics Ozempic and Wegovy. Cynically, expanding waistlines in many parts of the world have given the biotech giant a massive addressable market. Still, as The New York Times pointed out, Novo Nordisk isn’t satisfied. Instead, it wants to prevent obesity, an incredibly ambitious target.

Still, it’s the kind of news that investors want to hear, with many retail buyers gravitating toward NVO. Right now, shares carry a moderate buy rating. However, the average price target of $127.93 implies very limited upside. Over the past 52 weeks, NVO gained over 50% of equity value.

Nevertheless, the most optimistic analyst target calls for $163, implying nearly 29% upside potential. That makes sense given the popularity. It’s one of the most popular stocks among retail investors.

Leidos (LDOS)

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Falling under the information technology sphere, Leidos (NYSE:LDOS) provides services and solutions in the defense, intelligence, civil and health markets. It’s one of the most important enterprises in terms of national defense, serving in advanced areas such as air navigation, data analytics and cybersecurity, among many other applications. Analysts rate shares a consensus strong buy with a high-side price target of $180.

Financially, Leidos isn’t the most standout enterprise. However, it rates highly as one of the popular stocks among retail investors for its vast reach and consistent profitability. It also enjoys a discounted price, trading at 17.84X forward earnings. In contrast, the sector median stands at 23.75X.

For fiscal 2024, covering experts believe earnings per share will land at $8.60, above last year’s result of $7.30. By the following year, EPS could reach $9.11. On the top line, sales could land at $16.17 billion, up 4.8% from 2023’s tally of $15.44 billion. In 2025, revenue could rise to $16.86 billion.

While it’s not the most generous yield out there, Leidos also pays a forward dividend yield of 1.06%.

Silicon Laboratories (SLAB)

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Based in Austin, Texas, Silicon Laboratories (NASDAQ:SLAB) is a fabless semiconductor company. Specifically, it provides analog-intensive mixed-signal solutions in the U.S. and other international markets. Some of the company’s core products include wireless microcontrollers and sensor products. Silicon Laboratories’ products find themselves in multiple applications, including Industrial Industry of Things (IIoT), automation and control and smart buildings, among many others.

Operationally, the company benefits from a robust three-year revenue growth rate of 28.8%. During the same period, its EPS without non-recurring items (NRI) came in at 25.5%. Both stats are above industry averages. Silicon also features a cash-to-debt ratio of 5.13X, better than 66.28% of its peers.

To be fair, experts believe that fiscal 2024 will be a rather slow period. The company may incur a loss of $1.35 per share on revenue of $632.33 million. A year ago, it delivered EPS of $1.59 on sales of $782.26 million. However, fiscal 2025 could see a turnaround, with EPS rising to $2.82 and the top line expanding to slightly over $936 million.

For patient investors, SLAB is one of the popular stocks among retail investors.

One Stop Systems (OSS)

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Headquartered in Escondido, California, One Stop Systems (NASDAQ:OSS) engages in the design, manufacture and marketing of high-performance computers, high-speed storage hardware and software, switch fabrics and systems for edge deployments. Per its public profile, One Stop’s systems are built using the latest advancements in processor and flash storage technologies. It sells products to multinational corporations, government agencies and military contractors.

In full disclosure, One Stop’s financial profile isn’t the greatest out there. However, the company benefits from a robust balance sheet. In particular, its cash-to-debt ratio is 2.79X, beating out 63.52% of sector peers. It also features a high equity-to-asset ratio of 0.82X.

For the current fiscal year, analysts anticipate a loss per share of five cents on revenue of $58.05 million. Frankly, that’s disappointing compared to 2023’s loss of two cents per share on sales of $60.9 million. However, in fiscal 2025, One Stop could post EPS of five cents on revenue of $65.13 million.

That also makes its lowly trailing-year sales multiple of 1.03X quite enticing. For the speculative type, OSS is one of the popular stocks among retail investors.

Grab (GRAB)

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Operating in the application software arena, Grab (NASDAQ:GRAB) engages in the provision of super apps in the emerging growth markets of Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Per its corporate profile, Grab offers its namesake ecosystem, which is a platform that connects drivers and merchant partners with consumers.

Of course, one of the most compelling aspects of GRAB is the projected growth of the Southeast Asian internet economy. Last year, this arena reached a valuation of approximately $218 billion. It may be early innings, which explains the enthusiasm for Grab. It’s easily one of the most popular stocks among retail investors.

For fiscal 2024, experts anticipate a loss per share of three cents, an improvement over last year’s loss of 10 cents. On the top line, they’re looking for revenue of $2.56 billion, up 16.9% from 2023’s haul of $2.19 billion. In fiscal 2025, the top line could rise to $2.99 billion. Further, the blue-sky target clocks in at $3.11 billion.

Granted, GRAB trades at a rich sales multiple of 5.78X. Still, with the Southeast Asia market’s potential growth, it’s worth putting on your radar.

Docebo (DCBO)

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Hailing from Toronto, Ontario, Canada, Docebo (NASDAQ:DCBO) operates as a learning management software company. It provides artificial-intelligence-powered learning platforms in North America and other international markets. The company offers what it terms a Learning Management System to train internal and external workforces, partners and customers. With AI becoming integrated in many facets of life, Docebo is another top idea for popular stocks among retail investors.

Financially, a standout attribute of Docebo is its three-year revenue growth rate, which clocks in at 37.3%. Also, its free cash flow (FCF) growth rate during the same period lands at 55%. Both stats rate well above sector averages. Further, it features a robust balance sheet with a cash-to-debt ratio of 34.16X.

For fiscal 2024, analysts anticipate a big year, with EPS rising to 73 cents on revenue of $221.5 million. In 2023, earnings reached only 8 cents per share on sales of $180.84 million. In the following year, EPS could rise to $1.14 on sales of $269.46 million. Notably, the blue-sky revenue target in 2025 hits $275.1 million.

ACM Research (ACMR)

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Operating in the semiconductor equipment and materials ecosystem, ACM Research (NASDAQ:ACMR) isn’t the most exciting tech player out there. However, it provides valuable “behind-the-scenes” work that makes the industry run smoothly. Per its public profile, ACM develops, manufactures and sells single-wafer wet cleaning equipment for enhancing the process and yield for integrated chips.

Unsurprisingly, analysts love ACMR stock, rating shares a unanimous strong buy. Further, their average price target lands at $37.75, with a high-side target of $40. Financially, the company benefits from a massive three-year revenue growth rate of 51.7%. During the same period, its EBITDA growth rate soared to 80%. Both stats are well into the sector’s upper echelons.

For the current fiscal year, experts see a slow down in EPS to $1.46 from the prior year’s $1.63. While that’s disappointing, EPS should rise to $1.83 in fiscal 2025. On the top line, revenue this year should hit $699.36 million, up 25.4% from 2023. Also, 2025 sales could hit $865.8 milli9on, with a blue-sky target of $972.95 million.

It’s discounted, too, with a forward earnings multiple of only 16.88X.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/7-stocks-that-ordinary-investors-cant-get-enough-of-right-now/.

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