Benzinga’s Stock Whisper Index: 5 Stocks Under the Radar (Week Ending Dec. 13)
This week’s Benzinga Stock Whisper Index reveals five intriguing stocks flying under the radar, exhibiting patterns indicative of potential market shifts. These companies, spanning diverse sectors, have captured considerable attention from Benzinga readers, suggesting significant underlying interest and potential for future growth. Each selection presents a unique investment narrative, merging proprietary data analysis with recognizable market trends, offering investors a curated look at promising opportunities often missed in the broader market noise.
Key Takeaways: Hidden Gems in the Stock Market
- Social Media Showdown: Snap Inc (SNAP) benefits from potential TikTok ban, but faces challenges internationally.
- Drone Technology Soars: SEALSQ Corp (LAES) skyrockets on drone partnerships and innovative chip technology.
- Analyst Optimism Fuels Vertiv: Strong analyst ratings and growth projections propel Vertiv Holdings (VRT) higher.
- Consistent Growth: Danaher Corporation (DHR) receives an analyst upgrade, continuing its history of outperformance.
- AI-Driven Growth: Marvell Technology (MRVL) rides the AI wave post-earnings report on innovative chips, sending shares significantly up year-to-date.
Snap Inc (SNAP): A Potential Beneficiary of the TikTok Ban
Snap Inc, the social media and messaging company, has seen a surge in reader interest this week, largely attributed to the ongoing legal battle surrounding a potential TikTok ban in the U.S. Should the ban proceed, companies such as Snap, along with Facebook, Instagram, and Reddit, stand to gain significantly from a shift in user base.
The recent court ruling against TikTok’s parent company, ByteDance, presents a near-term challenge to the popular social media platform. ByteDance faces a January 19, 2025 deadline to either sell its U.S. operations to a non-Chinese entity or risk removal from American app stores. However, the legal battle is far from over, with ByteDance planning further appeals and the potential interference with President-elect Donald Trump’s incoming administration. This ongoing uncertainty adds a layer of risk to any bullish outlook. Furthermore, Snap, along with other social media platforms, is grappling with increasing scrutiny globally regarding age restrictions. This regulatory pressure could potentially weigh on the stock’s performance in the long term.
Despite this potential upside, Snap stock experienced a weekly decline, reflecting the inherent uncertainty. It’s also important to note Snap’s year-to-date performance shows a 30% drop in 2024, highlighting its volatility.
SEALSQ Corp (LAES): Riding the Wave of Drone Technology
SEALSQ Corp, a microchip company, saw its shares surge dramatically this week thanks to several key announcements linked to the burgeoning drone industry. The company announced strategic partnerships with major drone manufacturers Parrot and AgEagle and is set to introduce its innovative Quantum-Resistant Secure Chips portfolio in 2025, adding to its considerable appeal. The combination of these partnerships and future product development fueled the massive 200%+ surge in its share price on the week.
Strategic Partnerships and Innovation
The partnership with IC’ALPS further strengthens SEALSQ’s position, accelerating the development of secure Application Specific Integrated Circuits (ASICs). “By combining agility with innovation, we are setting a benchmark for excellence in the competitive global semiconductor industry,” commented SEALSQ CTO Jean Pierre Enguent. This statement underlines the company’s commitment to innovation and its ambition within the competitive semiconductor market.
The rapid growth of both commercial and military drone applications has created a highly favorable environment for SEALSQ, positioning it as a key player in this expanding sector, a sector that many investors are keeping a close eye on given the many facets of various business models.
Vertiv Holdings (VRT): Analyst Confidence and Growth Projections
Vertiv Holdings, a critical power and infrastructure company, garnered significant reader interest following a positive analyst outlook. Andrew Obin of Bank of America reiterated a “Buy” rating with a price target of $150, citing a major revision in Vertiv’s organic revenue growth forecast. The company now projects a 12%-14% compound annual growth rate (CAGR) from 2024-2029, a substantial upgrade from earlier forecasts of 8%-11%.
Positive Analyst Sentiment
This sentiment is echoed by other analysts. Barclays initiated coverage with an “Equal-Weight” rating and $142 price target, while Citigroup maintained a “Buy” rating, increasing its price target from $141 to $155. The collective positive outlook underlines market confidence in Vertiv’s growth trajectory and positions it for future gains.
Danaher Corporation (DHR): Continued Outperformance
Danaher Corporation, a scientific instrument manufacturing company, saw heightened interest, driven by a recent analyst upgrade. Previously featured in the Stock Whisper Index in June, Danaher received a boost after Bank of America upgraded its rating from “Neutral” to “Buy”, setting a price target of $290. The analyst noted that strategic partnerships and pricing adjustments are poised to fuel future expansion.
Strong Financial Performance and Future Outlook
Danaher’s consistent strong financial performance bolsters the positive outlook. The company has repeatedly exceeded expectations, surpassing analyst estimates for both revenue and earnings per share for over ten consecutive quarters. The upcoming fourth-quarter earnings announcement in January provides a potential near-term catalyst for stock price appreciation.
Marvell Technology (MRVL): Capitalizing on the AI Boom
Marvell Technology, a semiconductor stock, traded higher following its recent third-quarter financial results, which beat analyst expectations for both revenue and earnings per share. The impressive year-to-date performance of over 100% highlights the enthusiasm for its products and direction.
AI-Driven Growth and Innovation
Matt Murphy, CEO of Marvell, emphasized the fourth-quarter guidance, particularly focusing on high-volume production of custom AI silicon. The company’s recent introduction of new chips in its interconnect portfolio is strategically positioned to capture opportunities presented by the rapidly growing AI-driven data center market. Multiple analysts subsequently raised their price targets on Marvell, further confirming investor optimism and strengthening the overall positive outlook.
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