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Top Stock Picks for Week of December 9, 2024

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Marvell Technology (MRVL - Free Report) is a fabless designer, developer and marketer of analog, mixed-signal and digital signal processing integrated circuits.Marvell is benefiting from the strong demand environment across the data center end market. In the third quarter, its data center end market revenues increased 98% year over year and 25% sequentially, propelled by strong revenue growth across artificial intelligence (AI)-driven demand for PAM products and ZR electro-optics. Completion of inventory digestions is likely to aid growth across the enterprise networking and carrier infrastructure end markets. The stock has outperformed the industry year to date. Marvell has initiated restructuring activities to boost operational efficiency.  Marvell’s strong operating and free cash flows have helped it return cash through regular quarterly dividend payment and share repurchases. The company delivered stellar Q3 earnings recently, fueled by explosive growth in AI-related sales.  This semiconductor company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.5% over the last 60 days.

Wolverine World Wide, Inc. (WWW - Free Report) is engaged in the designing, manufacturing and distribution of a wide variety of casual as well as active apparel and footwear.Wolverine is benefiting from brand revitalization and product innovation, with Merrell brand posting year-over-year higher revenues in the third quarter of 2024. Merrell's new products and Saucony’s expansion into performance and lifestyle segments position the company for further growth. Strong DTC and e-commerce channels enhance margins, supported by reduced promotional activity. The adjusted gross margin increased 380 basis points year over year to 45.3%. Operational improvements, including a 49.4% year-over-year inventory reduction, have boosted its profitability. Also, debt reduction strengthened the company’s financial position. With a strong 2024 outlook, Wolverine is on track for sustained growth. Moreover, the company’s focus on international expansion, store openings and product launches support its financial health. Wolverine World Wide came out with quarterly earnings beating the Zacks Consensus Estimate. Wolverine posted revenues for the quarter ended September 2024, surpassing the Zacks Consensus Estimate.  Wolverine shares have added about 80.5% since the beginning of the year versus the S&P 500's gain of 24.3%.


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