With August and back-to-school season upon us, much of the outstanding second-quarter earnings results have been posted and analysts and investors on Wall Street are very satisfied with the results. While many investors remain very nervous, especially given the continuing big rally off the market lows and the lack of a 5% correction in almost a year, the “buy the dip” crowd continues to hold serve, at least for now.
In a series of new reports, Goldman Sachs raised the price targets on some companies that have delivered the goods in a big way. Given the increases in price targets, they still look to have some very solid upside potential. Here we spotlight four of the stocks that are rated Buy at Goldman Sachs and saw their price targets there boosted.
This top semiconductor stock has been on fire and broke out to new all-time highs this week. Advanced Micro Devices Inc. (NYSE: AMD) operates as a semiconductor company worldwide. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services. They also include server and embedded processors, and semi-custom system-on-chip products, development services and technology for game consoles.
The company reported outstanding second-quarter results, in which gross margins surpassed analyst expectations, growing by four percentage points year over year. The higher gross margin reflects greater operational efficiency, particularly key during the current global chip shortage. The company expects 2021 annual revenue to grow by approximately 60% year over year, driven by strong execution and increasing customer preference for its products.
Goldman Sachs raised the price target on Advanced Micro Devices stock from $115 to $130, which is well above the Wall Street consensus target of $104.79. Thursday’s final trade came in at $112.35, which was down over 5% and looks like some profit-taking after a big run.
This off-the-radar stock offers investors a very solid entry point. FMC Corp. (NYSE: FMC), an agricultural sciences company, provides crop protection, plant health, precision agriculture and professional pest and turf management products.
The company develops, markets and sells crop protection chemicals that include insecticides, herbicides and fungicides used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds and disease, as well as in non-agricultural markets for pest control.
FMC also offers biologicals products, such as bionematicides under the Quartzo and Presence names. The company sells herbicides under the Authority, Boral, Centium, Command and Gamit brands, as well as Isoflex active herbicide ingredients; Rynaxypyr and Cyazypyr active ingredients; and insecticides under the Talstar and Hero brands, as well as flutriafol-based fungicides. It sells its products through independent distributors and co-ops, and national and regional distributors, as well directly to growers.
FMC posted very solid quarterly earnings of $1.81 per share, beating the Wall Street consensus Estimate of $1.77 per share. This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items.
Shareholders receive a 2.06% dividend. The $130 Goldman Sachs price target rose to $145. The consensus target is $132.50, and FMC stock pulled back over 5% on Thursday to close at $93.23.