July 20, 2022, Advanced Micro Devices, Inc. (NASDAQ:AMD) and The Boeing Company (NYSE:BA)
With both stocks offering at least 40+% of upside, these beaten-down names could be the best stocks to buy now.
After markets on Monday (July 18, 2022) couldn’t hold onto their gains, Tuesday (July 19, 2022) more than made up for it. Stocks skyrocketed, with the Dow Jones closing over 750 points higher (2.43%), the S&P surging 2.76%, and the Nasdaq climbing 3.11%. Is it a bear trap or a sign of things to come? Either way, days like this are why you buy the dip and dollar cost average. Days like this are why Advanced Micro Devices, Inc. (NASDAQ:AMD) and The Boeing Company (NYSE:BA) could be two of the best stocks to buy now.
Moreover, each moved the markets on Tuesday (July 19, 2022).
AMD is a prominent player in the semiconductor industry and could have a great deal of momentum heading into the next few months. Especially leading up to the potential passing of the CHIPS act, which would provide domestic chip makers $52 billion in government subsidies. The AMD stock surged over 5% on the news and could have more momentum moving forward. Beaten down in 2022, AMD remains resilient for the long term as one of the best stocks to buy now. Especially as it is still roughly 50% below all-time highs.
Then there’s the oft-maligned Boeing, which could finally turn a corner as one of the best stocks to buy now. Shares of the aerospace giant rose over 5.5% on Tuesday (July 19, 2022) amid news of the most plane orders it’s seen in years. It could build on this momentum with immense upside while still at a desirable level.
So without further ado, here are more reasons why these two giants are the best stocks to buy now.
Advanced Micro Devices, Inc. (NASDAQ:AMD)
Despite this chip play remaining severely undervalued, it’s rocketed almost 20% since touching lows. It could have an over 48% upside with the CHIPS Act in play.
Advanced Micro Devices, for years, has been an innovator and disruptor in the semiconductor space, striking fear into the hearts of old-school names like Intel. Moreover, it has solid fundamentals and operations in in-demand sectors such as data center and professional graphic processing units (GPUs), semi-custom System-on-Chip (SoC) products, and technology for game consoles.
While the stock has plunged into 2022, losing nearly half its market value, fortunes have looked quite different as of late. Since hitting 2022 lows of $71.60 a few short weeks ago, it has rocketed nearly 20%.
With mounting catalysts, this stock could build on this recent momentum. Yet it still remains severely undervalued, with significant upside, and is clearly one of the best stocks to buy now.
The CHIPS Act- A Massive Catalyst for AMD…Political Insiders Know It
Chipmakers surged on Tuesday (July 19, 2022) following discussions of the CHIPS Act. AMD surged almost 5.5% on news that Congress appears poised to pass the bill which would provide domestic chip companies $52 billion in subsidies to tackle the shortage. The Senate approved a procedural motion by a vote of 64 to 34, advancing the legislation.
The bill could become law by the end of the following week.
If there’s one person who knows what political games mean for specific stocks, it’s Speaker Nancy Pelosi’s husband, Paul. Why else would he buy over $1 million worth of chip stocks in the weeks before the vote?
AMD’s Fundamentals Stand Out as Significant Growth Drivers
Despite AMD’s overall pain sans this latest uptrend, the stock has been a long-term outperformer. You can credit its outstanding fundamentals, which have always served as significant growth drivers.
Cash flows, first and foremost, can sufficiently cover interest payments. AMD also boasts several impressive margins, which add further to the story of this (for once) being a deep value play, as seen by its shocking 19.2x forward P/E. Consider the following:
With the stock trading at such a discount, growth prospects could also be astronomical.
- EPS is expected to grow by 12.25% in the coming year.
- Revenue could see a 6% CAGR over the next five years.
- Net income could grow 4% at an average of 34.3% over the next five fiscal years.
AMD Won’t Stay This Cheap Forever…The Breakout Has Already Begun
You do not often see a hyper-growth stock like AMD trading with a forward P/E under 20 while sitting nearly 50% below its all-time highs. The breakout and reversal may have already started, as seen by its performance this month. To hesitate and sit this out would be blatantly ignoring one of the best stocks to buy now.
Analysts know it too.
Analysts See Almost 50% Of Upside in AMD
We’ve noted AMD’s fundamental backbone and political catalysts that could work in the stock’s favor. Judging by the colossal analyst upside the stock has, we do not imagine it.
According to TipRanks, 26 Wall Street analysts offered 12-month price targets for Advanced Micro Devices in the last 3 months. Currently, AMD has a street-high price target of $200.00, a low of $85.00, and an average of $127.43. The average price target represents a 48.38% upside from July 19, 2022’s closing price of $85.88.
Wells Fargo, though, sees even more upside for AMD than its average target. Following the news of the CHIPS Acts, the bank maintained an OVERWEIGHT rating and gave the stock a $130.00 target. This represents a 51.37% upside from July 19, 2022’s close.
KeyCorp last week also maintained an OVERWEIGHT rating with the same price target.
Yet even before the buzz behind the CHIPS Act, other analysts in June saw even more upside. This includes Benchmark, which kept a BUY rating and boosted its target from $125 to $135, and Wedbush, which reiterated an OUTPERFORM rating with a $165 price target.
AMD’s year-to-date low and high are $71.60 and $151.65, respectively.
The Boeing Company (NYSE:BA)
With mounting orders, the aerospace and defense giant may have turned a corner with as much as an 84+% upside.
Boeing is an aerospace and defense giant that has had a rough few years. There’s its debt burden, the impact COVID had on its operations, its 737 MAX issues, and inflation and supply chain crises.
Yet Boeing has endured and is well on the way to prevailing.
Based on yesterday’s (July 19, 2022) news, the stock could build on an outstanding month and skyrocket the rest of the year. Since its 2022 lows of $113.02 in June, the stock has caught fire and moved 38.14%.
Although the stock is trading at nearly ¼ of its all-time high from 2019, that’s precisely why it’s one of the best stocks to buy now. It remains a juggernaut as one of the world’s largest global aerospace manufacturers, the world’s third-largest defense contractor, and the United States’ largest exporter by dollar amount.
With it trading at this level and mounting catalysts, it’s a no-brainer.
Orders Are Heating Up Along With Boeing’s Triple-Digit Net Income Growth Prospects
Boeing’s stock surged on Tuesday (July 19, 2022) because it’s simply been the best week the Company has had in years. We will see what their earnings report says next week. Still, for now, Boeing’s latest orders are something we haven’t seen from this Company in a very long time.
- Announced an order for up to 66 Boeing 737 MAX aircraft from private equity firm 777 Partners. The deal was worth $8 billion.
- Delta announced its largest Boeing order in over a decade and ordered 100 737 Max 10 planes, with options for 30 more. Deliveries are slated to begin in 2025. The order is worth $13.5 billion
- Aviation Capital Group LLC (ACG) ordered 12 additional 737-8 jets. The order expands the ACG 737 MAX order book to 34 airplanes. ACG also ordered nine 737-8s in May 2022
- An order of five 787 Dreamliners from AerCap
With a potential $50 billion colossal Air India deal in the works, keep an eye on Boeing as one of the best stocks to buy now. It could have a very lucrative remainder of 2022.
You know that meme of former WWE legend The Undertaker rising from the dead? It feels appropriate for the renewed demand Boeing has seen. Perhaps that’s why its net income could grow 78.5% and average 129.3% over the next five fiscal years. Or why its earnings could once again turn positive and explode by 5x.
Boeing Could Have a Roughly 40% Upside…But a Recent Goldman Sachs Upgrade Sees it Moving 84.46%
Notably, TipRanks rates Boeing a STRONG BUY. That’s because out of 18 Wall Street analysts who offered 12-month price targets for BA in the last 3 months, 15 rated it a BUY compared to only 3 HOLD and 0 SELL. BA currently has a street-high price target of $288.00, a low of $160.00, and an average of $215.29. Its average price target represents a 37.89% upside from July 19, 2022’s closing price of $156.13.
Goldman Sachs, though, is the culprit with the street-high price target of $288.00. Analyst Noah Poponak initiated this target just one week ago, representing an 84.46% upside from July 19, 2022’s close.
The week before, Robert W. Baird also reiterated an OUTPERFORM rating with a $245.00 target.
BA’s year-to-date low and high are $113.02 and $229.67, respectively.
