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Brian's Big Idea: Insider Buying

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As the aggressive growth stock strategist for Zacks Investment Research, Brian tends to focus on Growth over Value. This week he is taking a look at three tech stocks that have been in the news lately and then one of the services that focuses on Insider Buying. It should be noted that Tracey Ryniec, who manages the Insider Trader service also runs the Value Investor service as at Zacks.

First up is Palantir Technologies (PLTR - Free Report) which is a Zacks Rank #2 (Buy) and just reported solid earnings the other day. The stock soared more than 20% following the earnings print. In the video, Brian takes a look at their earnings history and mentions that they are growing around 50%. While they have beaten the number over the last four quarters and shown great growth, the forward PE multiple is sky high at more than 200x.

Next up in Nvidia (NVDA - Free Report) which is also a Zacks Rank #2 (Buy) that has much more reasonable multiple of 28x. This company has been posting incredible revenue growth for the last year and as new products come to the market it is likely that we will continue to see good growth numbers. The Zacks Consensus Estimate for sales implies 48% topline growth in 2025 but Brian notes that we could see that number move even higher.

Finally we look at Arbe Robotics (ARBE - Free Report) which is a Zacks Rank #2 (Buy) the company partnered with NVDA as a supplier of advanced radar technology used in autonomous vehicles and will undoubtedly be used when robots start coming off the production line. Brian notes in the video that the company has $40M in preorders from Chinese automotive companies and is expected to sign a European automotive company in the coming weeks. All of this make ARBE a compelling stock following the massive rise the stock saw after the NVDA partnership was announced.

While it is hard to know if these stocks will continue to move higher, it is easy to understand what might happen if insiders announce purchases stock with their own money. When insiders buy, it is often a great signal that things are going to get better. They literally have the inside track on what is coming down the road, so it is a key indicator to follow

Tracey Ryniec runs the Insider Trader service at Zacks Investment Research and she pours over all the SEC documents so you don’t have to. She matches up the stocks that are seeing insider buying and those with a strong Zacks Rank. Her years of experience also play a crucial role in the success of the service. Tracey uses a value oriented approach but isn’t afraid of chasing a growth stock here and there.

Be sure to check out Zacks Insider Trader!


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NVIDIA Corporation (NVDA) - free report >>

Palantir Technologies Inc. (PLTR) - free report >>

Arbe Robotics Ltd. (ARBE) - free report >>

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