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Top Stock Picks for Week of June 21, 2021

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NXP Semiconductors N.V. (NXPI - Free Report) provides high performance mixed signal and standard product solutions  NXP Semiconductors is driven by a strong demand environment across all end markets. It continues to benefit from strong position in secular growth markets — including Automotive, industrial & IoT, communications, as well as mobile. Its safety products for advanced driver assistance systems (ADAS) have been gaining momentum. Also, rising 5G network deployments are driving growth in the communication business. Further, growing adoption of NXP’s offerings, product design wins and strength in infrastructure remain positives. Solid momentum in RF power for base stations remains a tailwind. Notably, the stock has outperformed its industry on a year-to-date basis. Management is focused on improving gross and operating margins. Restructuring activities have helped it lower the cost structure, which enabled the company to generate relatively steady gross margins. The company’s expected earnings growth rate for next year is in double digit percentages. The Zacks Consensus Estimate for current-year earnings has improved over the past 60 days.

PulteGroup Inc. (PHM - Free Report) engages in homebuilding and financial services businesses, primarily in the United States. Shares of PulteGroup have outperformed the industry so far this year. Also, earnings estimates have been trending north over the past 30 days, depicting analysts’ optimism over the company’s growth potential. Solid housing market momentum, prudent land investment strategy, focus on entry-level buyers and protecting liquidity as well as efficient management of cash flows have been benefiting PulteGroup. The housing market rebound on the back of low interest rates will drive the company. Given improving demand conditions post pandemic-driven shutdowns, the company increased investment in both land development and the purchase of new land assets. Notably, the company’s return on equity (ROE) indicates efficiency in using its shareholders’ funds and the company’s ability to generate profit with minimum capital usage. In response to unfavorable demand trends owing to the pandemic, the company has been focusing on protecting liquidity and closely managing cash flows. 

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PulteGroup, Inc. (PHM) - free report >>

NXP Semiconductors N.V. (NXPI) - free report >>

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