We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Buy this Soaring Tech Stock Up 100% in the Last Year for More Upside?
Read MoreHide Full Article
Super Micro Computer (SMCI - Free Report) ) soared 98% over the last year to crush the tumbling tech sector. The server and storage solutions provider posted stellar growth during its FY22 and it recently upped its guidance for Q2 FY23 which it is set to report on January 31.
Super Micro Computer has showcased impressive top and bottom-line expansion during the tech downturn. SMCI's ability to up its guidance as most major firms in technology and beyond lower their guidance amid a slowing economy is also great to see.
Despite the huge run, investors might want to consider buying Super Micro Computer for even more upside in 2023 and beyond.
The SMCI Basics
Super Micro Computer makes application-optimized server and storage solutions for enterprise-level cloud computing, artificial intelligence, telecom, and beyond. The firm has expanded its customer base even as it competes against the likes of IBM (IBM - Free Report) and others in the server segment by rolling out ad-hock solutions.
Super Micro Computer enables customers to fine-tune and customized their server and storage solutions. Super Micro Computer’s impressive history dates back to its founding in Silicon Valley in the early 1990s.
Image Source: Zacks Investment Research
SMCI’s FY22 revenue (period ended in June) soared 46% to boost its adjusted earnings by nearly 130%. The firm posted a strong first quarter of its fiscal 2023 and it upped its Q2 FY23 revenue and earnings guidance on January 18. The firm cited its expanding markets and diversified customer base “adopting” its “rack-scale Total IT Solutions” as a reason for its increasingly bullish outlook.
SMCI’s improving earnings outlook for Q2, as well as for FY23 and FY24 helps it grab a Zacks Rank #2 (Buy). Zacks estimates call for its revenue to climb another 31% in FY23 to $6.8 billion to boost its adjusted earnings by 73%. The nearby chart helps put Super Micro Computer’s recent growth into its strong historical context.
Image Source: Zacks Investment Research
SMCI has consistently topped our EPS estimates and its Computer- Storage Devices segment is in the top 30% of over 250 Zacks industries. As we mentioned up top, Super Micro Computer stock is up nearly 100% in the past 12 months to help it blow away the Zacks Tech sector’s 18% drop.
Stretching back, SMCI shares have climbed 166% in the last three years and 500% in the past decade vs. Tech’s 198%.
Bottom Line
Super Micro Computer has pulled back from its November peaks to trade 25% below its average Zacks price target and 17% beneath its highs at around $76 a share. Plus, SMCI trades 50% below both its own 10-year highs and the Zacks Tech sector at 9.5X forward earnings.
Super Micro Computer’s ability to greatly expand its revenue and earnings during such a tough stretch for the wider tech industry is stunning. SMCI’s recent and historic outperformance is also impressive, especially when coupled with its strong value.
Super Micro Computer appears worth considering heading into its Q2 FY23 financial release on Tuesday, January 31.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Buy this Soaring Tech Stock Up 100% in the Last Year for More Upside?
Super Micro Computer (SMCI - Free Report) ) soared 98% over the last year to crush the tumbling tech sector. The server and storage solutions provider posted stellar growth during its FY22 and it recently upped its guidance for Q2 FY23 which it is set to report on January 31.
Super Micro Computer has showcased impressive top and bottom-line expansion during the tech downturn. SMCI's ability to up its guidance as most major firms in technology and beyond lower their guidance amid a slowing economy is also great to see.
Despite the huge run, investors might want to consider buying Super Micro Computer for even more upside in 2023 and beyond.
The SMCI Basics
Super Micro Computer makes application-optimized server and storage solutions for enterprise-level cloud computing, artificial intelligence, telecom, and beyond. The firm has expanded its customer base even as it competes against the likes of IBM (IBM - Free Report) and others in the server segment by rolling out ad-hock solutions.
Super Micro Computer enables customers to fine-tune and customized their server and storage solutions. Super Micro Computer’s impressive history dates back to its founding in Silicon Valley in the early 1990s.
Image Source: Zacks Investment Research
SMCI’s FY22 revenue (period ended in June) soared 46% to boost its adjusted earnings by nearly 130%. The firm posted a strong first quarter of its fiscal 2023 and it upped its Q2 FY23 revenue and earnings guidance on January 18. The firm cited its expanding markets and diversified customer base “adopting” its “rack-scale Total IT Solutions” as a reason for its increasingly bullish outlook.
SMCI’s improving earnings outlook for Q2, as well as for FY23 and FY24 helps it grab a Zacks Rank #2 (Buy). Zacks estimates call for its revenue to climb another 31% in FY23 to $6.8 billion to boost its adjusted earnings by 73%. The nearby chart helps put Super Micro Computer’s recent growth into its strong historical context.
Image Source: Zacks Investment Research
SMCI has consistently topped our EPS estimates and its Computer- Storage Devices segment is in the top 30% of over 250 Zacks industries. As we mentioned up top, Super Micro Computer stock is up nearly 100% in the past 12 months to help it blow away the Zacks Tech sector’s 18% drop.
Stretching back, SMCI shares have climbed 166% in the last three years and 500% in the past decade vs. Tech’s 198%.
Bottom Line
Super Micro Computer has pulled back from its November peaks to trade 25% below its average Zacks price target and 17% beneath its highs at around $76 a share. Plus, SMCI trades 50% below both its own 10-year highs and the Zacks Tech sector at 9.5X forward earnings.
Super Micro Computer’s ability to greatly expand its revenue and earnings during such a tough stretch for the wider tech industry is stunning. SMCI’s recent and historic outperformance is also impressive, especially when coupled with its strong value.
Super Micro Computer appears worth considering heading into its Q2 FY23 financial release on Tuesday, January 31.