Amazon (AMZN)
Up 44% in the past year we have seen Amazon be the target of hedge funds who have recently loaded up on over $29B worth of stocks they bought late last year. Amazon currently has a PEG ratio of 1.3 which is quite a bit lower than its 10 year historical average of around 2.48 which indicates that AMZN stock is currently undervalued relative to its historical performance.
Amazon has beat their last 3 earnings calls and have a long history of being able to post strong earnings results. They are relatively low risk thanks to their diverse revenue sources, having 5 major sources making up the bulk of their income (Online Stores – 38%, 3rd Party – 24%, AWS – 18%, Advertising – 10%, Subscription – 7%).
The average analyst rating is a Strong Buy with a +13% upside, and we have put AMZN as a Strong Buy with a 20% one year projection.
Micron Technology (MU)
Up 125% in the past 6 months Micron stock is a great choice for investors that want a medium risk, high reward semiconductor stock for some AI exposure at arms length. What makes Micron stock so attractive as a tech stock right now is their price to earnings is just 22 considering their EPS growth over the next 12 months is expected to be around 170%. This gives MU stock one of the best PEG ratio’s in the entire NASDAQ at just 0.1, especially when you account for risk – Micron has beat all 4 of their last earnings forecasts and the semiconductor industry is forecasted to hit $1.6T by 2030 at a 13% compound annual growth rate.
Right now, the average analyst rating is a Strong Buy with a +50% one year forecast; and we have rated Micron a Buy with a +28% one year price prediction.
Advanced Micro Devices (AMD)
AMD stock is a very popular growth tech stock right now that is trading at a massive 76 earnings multiple. However, given their 149% forecasted EPS growth over the next year and its outstanding PEG ratio of just 0.5, its giving investors a lot of confidence that this stock will be able to outperform the market in the next few years. Analysts are calling for their EPS to increase to $6.65 by April 2027 which would send this stock soaring if they can continue to hold up that valuation by beating earnings calls like they did last quarter.
We estimate that AMD could hit $400 as soon as November 2026 assuming the valuation holds and AMD is able to meet their earnings expectations through to the end of the year, and we have a fair amount of confidence this is likely to happen. The general consensus among consumers is that AMD offers high quality CPU’s, and contracts with major clients like AWS, Microsoft, and Meta seem to continue to get larger and larger as time goes on.
The average analyst rating is a Buy with a +37% one year forecast and we have it rated a Buy with a +40% on year upside.
Topics: AMZN stock rating, MU stock analysis, AMD stock price projection
