On April 20, Guggenheim maintained a Buy rating on the stock with a price target of $270. The firm argues that the market is underestimating the growth potential of ADP, particularly its enterprise human capital management tool Lyric. Guggenheim noted that industry experts and consumer checks show how ADP Lyric performs well in complex payroll environments such as healthcare.

Moreover, Lyric also works well when deployed as a payroll and compliance layer alongside existing human capital management tools such as Workday and SAP. The firm noted that this “co‑existence” model lets the company serve complex workforce segments it otherwise might not reach. The analyst notes that this “buying motion” broadens ADP’s total addressable market because Lyric can land deals without dislodging the entire legacy human capital management stack.

Automatic Data Processing, Inc. (NASDAQ:ADP) set to release its fiscal Q3 2026 earnings on April 29. Wall Street expects the quarterly revenue around $5.85 billion along with a GAAP EPS estimate of $3.30. The company provides cloud-based human capital management solutions globally.

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While we acknowledge the potential of ADP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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​The Street is bullish on Accenture plc (NYSE:ACN) as 70% of the 30 analysts covering the stock have a Buy rating. Moreover, the average 12-month price target suggests more than 26% upside from the current level.

​Recently, on April 20, the company at Hannover Messe 2026 in Germany announced its partnership with Avanade and Microsoft to develop an agentic factory intelligence system. This system can potentially transform manufacturing by enabling AI agents to collaborate with human workers, machines, and data for faster issue resolution on factory floors.

​The company noted Kruger and Nissha Metallizing Solutions as early adopters of the agentic factory intelligence system. These companies are validating the concept of agentic factories ahead of its general launch later this year.

​Management noted that the factories are built upon the Factory Agents and Analytics platform of Accenture and Avanade. The system is be powered by Microsoft Azure, Fabric, Foundry, and Copilot.

​Accenture plc (NYSE:ACN) is a global leader in consulting, technology, and outsourcing services, offering a wide range of solutions across industries.

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While we acknowledge the potential of ACN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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​The Street has a bullish sentiment on Chipotle Mexican Grill, Inc. (NYSE:CMG) as 67% of the 42 analysts covering the stock have a Buy rating on the stock. Moreover, the average 12-month price target on the stock suggests more than 22% upside from the current level.

​Recently, on April 17, RBC Capital lowered the firm’s price target on the stock from $50 to $45, while maintaining a Buy rating on the shares. The rating comes ahead of the company’s FQ1 2026 earnings, expected to be released on April 29. RBC expects the same-store sales to beat the consensus estimates slightly. The optimism for the sales beat is based on an easier year-over-year comparison as consumer traffic declined in February 2025.

​Moreover, the firm expects the company to reiterate flat same-store-sales guidance for fiscal 2026, mainly due to macroeconomic uncertainties from consumer spending pressures. However, RBC sees room for improvement as the conditions get better later in the year.

​Chipotle Mexican Grill, Inc. (NYSE:CMG) is a global fast-casual restaurant chain known for customizable burritos, tacos, bowls, and salads, emphasizing high-quality, responsibly sourced ingredients and classic cooking methods, operating over 3,900 locations by late 2025.

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While we acknowledge the potential of CMG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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​On April 20, Adobe Inc. (NASDAQ:ADBE) announced major upgrades to Adobe GenStudio, which is the company’s AI platform for content creation. Management noted that they are building an agentic content supply chain, which will automate assembly lines from planning to delivering content across various channels.

​The company also highlighted that this also addresses key pain points, including manual reviews and siloed workflows for more than 20,000 brands using Adobe’s tools. Some of the key new features include Adobe brand intelligence, agentic workflow tools, creative production automation, and more. One of the main features includes a workflow optimization agent that automates planning, reviews, and insights. It treats the agent as a team member who can be assigned tasks.

​That said, earlier on April 17, Adobe Inc. (NASDAQ:ADBE) was maintained with an Outperform rating at RBC Capital. However, the firm reduced the price target from $400 to $350. The rating came before the Adobe Summit event, where the major GenStudio updates were announced.

The firm was already expecting the company to make new product announcements featuring end-to-end workflows. RBC noted that the company needs to accelerate its annual recurring revenue for improved investor sentiment.

​Adobe Inc. (NASDAQ:ADBE) provides software and services for digital content creation and marketing.

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While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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​On April 20, Reuters reported that Eli Lilly and Company (NYSE:LLY) is buying Kelonia Therapeutics in a deal valued at up to $7 billion. The deal is aimed at expanding the company’s oncology offerings and also diversifying the company beyond its dominant weight-loss drugs amid rising competition.

​According to the report, the deal is expected to close in the second half of 2026, and Lilly is expected to pay $3.25 billion upfront in cash, with up to $3.75 billion more in milestone payments tied to clinical, regulatory, and commercial successes.

​Kelonia Therapeutics is developing vivo CAR-T therapies using iGPS particles to engineer patients’ T-cells directly inside the body, skipping ex vivo modification, apheresis, and lymphodepleting chemo. Their lead candidate is KLN-1010, which targets BCMA in relapsed or refractory multiple myeloma and is in Phase 1 trials. Reuters noted that Eli Lilly and Company (NYSE:LLY) aims to bolster its oncology portfolio; the oncology market is expected to hit $409 billion by 2028.

​Overall, the Street is bullish on Eli Lilly and Company (NYSE:LLY) as 83% of the 35 analysts covering the stock maintain a Buy rating on the stock. Moreover, the 12-month average price target suggests more than 38% upside from the current level.

​Eli Lilly and Company (NYSE:LLY) develops and markets pharmaceutical products globally.

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While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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​On April 14, Mastercard Incorporated (NYSE:MA) was reiterated with a Buy rating by Citi. However, the firm lowered the price target from $735 to $675. Citi noted that despite the ongoing macroeconomic volatility, the company’s fundamentals remain intact. Moreover, the firm also highlighted stable consumer spending trends, which boost optimism for Mastercard. Citi attributed the price target reduction solely to lower multiples in the peer group, not company-specific issues.

​In separate news, on March 31, Loop Capital initiated coverage of Mastercard with a Buy rating and a $631 price target. Analyst Dominick Gabriele noted strong growth prospects despite recent stock weakness. Gabriele pointed to key opportunities, including expanding into new geographies, value-added services, agentic transactions, international cash-to-card shifts, and rising cross-border volumes. The firm believes that these factors position Mastercard to outpace payment processor peers in net revenue growth through new transaction generation and market share gains.

​Mastercard Inc (NYSE:MA) operates in the payments industry and is one of the leading payment processors for everyday consumers, financial institutions, governments, and businesses. The company is headquartered in New York, United States.

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While we acknowledge the potential of MA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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The Street has a bullish sentiment on Visa Inc. (NYSE:V) as 93% of the 40 analysts covering the stock have a Buy rating on the stock. Moreover, analysts’ 12-month average price target on the stock represents more than 26% upside from the current level.

​Recently, on April 14, Citi maintained a Buy rating on the stock but lowered the price target from $450 to $400. The firm noted that, regardless of the ongoing macroeconomic uncertainties, the fundamentals of Visa remain intact. The firm also highlighted stable consumer spending trends, which support Visa’s business. However, despite the overall positive sentiment and strong fundamentals, the price target was lowered due to lower multiples in the group.

​That said, earlier on April 7, Baird lowered the price target on Visa Inc. (NYSE:V) from $425 to $375 and maintained an Outperform rating on the stock. The firm noted updating its valuation model ahead of the company’s FQ2 2026 earnings. Visa is expected to release its earnings on April 28. The Street anticipates revenue around $10.75 billion along with a GAAP EPS of $3.05.

​Visa Inc. (NYSE:V) is a payment technology company operating in the United States and internationally. It operates VisaNet, a transaction processing network that handles the clearing, authorization, and settlement of payments. The company offers its services under different brands such as PLUS, Visa, V PAY, Visa Electron, and Interlink.

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While we acknowledge the potential of V as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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The companies highlighted that this training will help address a critical issue of the shortage of trained labor for building advanced data centers, which Meta needs to fuel its AI and cloud computing growth.

​As part of this partnership, CBRE will open multiple US training centers in summer 2026. At these training centers, the workers will be taught skills such as installing fiber-optic cables, network gear, and other data center infrastructure. Moreover, management also noted that graduates from these training programs will get priority placement at Meta’s construction sites.

Overall, the Street is bullish on Meta Platforms, Inc. (NASDAQ:META) with 90% of the 72 analysts covering the stock maintaining a Buy rating. The 12-month average price target reflects more than 27% upside from the current level.

​Meta Platforms, Inc. (NASDAQ:META) develops products that help people connect with their friends and family. The company operates through Reality Labs (RL) and Family of Apps (FoA). It operates major apps such as Instagram, Messenger, Facebook, Meta AI, Threads, and WhatsApp.

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While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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​On April 18, Reuters announced that Cerebras Systems, which is a venture capital-backed, Silicon Valley-based company, filed for a US initial public offering. This can mean direct competition for NVIDIA Corporation (NASDAQ:NVDA), as on its website, Cerebras Systems boasts to “stand alone as the world’s fastest AI inference and training platform.” According to Reuters, Cerebras aims to compete with Nvidia with different types of AI chips that don’t rely on high-bandwidth memory.

​The timeline, number of shares, and price of shares are not decided yet. The company says it plans to IPO when the market conditions are favorable. Despite this, Cerebras has already gained some big customers, including OpenAI, Amazon, and Meta. Notably, the company’s deal with OpenAI includes a $20 billion contract under which the ChatGPT creator will deploy 750 megawatts of the company’s chip.

​While the IPO of Cerebras Systems will result in increased competition for Nvidia, with the pace at which the AI chip market has been growing, there’s room for several companies in the space. Moreover, the Street remains bullish on NVDA as 93% of the 70 analysts covering the stock have maintained a Buy rating. The average 12-month price target suggests more than 32% upside from the current level.

​NVIDIA Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software. Its GPUs are used in gaming, high-performance computing, AI training, and inference and serve as the backbone of data center infrastructure worldwide.

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While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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​On April 16, Reuters reported that Microsoft Corporation (NASDAQ:MSFT) and Stellantis have entered a five‑year strategic partnership. As part of this collaboration, Stellantis will rely heavily on Microsoft’s cloud, AI, and cybersecurity expertise to modernize its digital and engineering operations as cars become more software‑driven.

​The report noted that both companies will jointly develop more than 100 AI initiatives and will also roll out digital features for vehicles. The partners aim to speed up innovation, improve software‑based features, and make Stellantis more competitive against tech‑savvy rivals. No financial details of the deal have been disclosed yet.

​That said, the Street is bullish on Microsoft; around 93% of the 59 analysts covering the stock have a Buy rating. The average 12-month price target suggests more than 38% upside from the current level. Recently, on April 21, Piper Sandler reiterated a Buy rating on the stock with a price target of $500. The firm cited strong AI growth as the key reason behind its bullish sentiment.

​Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.

[im-yf-promo]

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Zscaler, Inc. (ZS) is a leading cybersecurity platform pioneering the Zero Trust Exchange, replacing legacy perimeter-based firewalls with a cloud-native architecture that secures users, applications, and branch environments. The company continues to demonstrate strong execution, reporting Q2 FY2026 revenue of $816 million, up 26% year-over-year, while annual recurring revenue (ARR) grew 25% to $3.4 billion.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential

Despite tougher comparisons moderating organic growth to 7%, Zscaler maintained elite profitability with operating margins expanding to 22.2% and free cash flow margins exceeding 20%, sustaining a “Rule of 60+” profile. Growth is increasingly driven by a shift toward consumption-based pricing, with non-seat-based products contributing over 25% of new ACV and growing above 100%, reflecting rising demand tied to traffic and workload expansion.

Enterprise traction remains robust, with 728 customers generating over $1 million in ARR, supported by initiatives like Z-Flex that extend contract durations and enhance upsell visibility. The company’s Zero Trust architecture continues to differentiate it from firewall-based and bundled SASE competitors, while its “Zero Trust Everywhere” strategy is driving deeper penetration and 2–3x ARR expansion within large customers.

Artificial intelligence is emerging as a powerful tailwind, with the platform processing nearly one trillion AI-related transactions annually and new offerings like AI Protect enabling real-time inspection and policy enforcement. With a strong pipeline, improving sales productivity, and expanding monetization of AI-driven and consumption-based workloads, Zscaler is well positioned to sustain durable growth and long-term cash flow expansion.

Previously, we covered a bullish thesis on Rubrik, Inc. (RBRK) by ElectSamsepi0l in December 2024, which highlighted its leadership in backup and recovery, strong ARR growth post-IPO, and differentiated cyber resilience through cloud-integrated, air-gapped systems. RBRK’s stock price has depreciated by approximately 2.45% since our coverage. Sergey shares a similar view but emphasizes Zscaler’s Zero Trust architecture and AI-driven growth.

Zscaler, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held ZS at the end of the fourth quarter which was 50 in the previous quarter. While we acknowledge the risk and potential of ZS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

Wichy/Shutterstock.com

Veeva Systems Inc. provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, the Middle East, Africa, and Latin America. VEEV operates at the center of a durable, non-cyclical digital transformation within the global life sciences industry, positioning itself as the core operating system for critical workflows spanning clinical development, regulatory compliance, and commercial operations.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

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The company benefits from strong secular tailwinds, including rising pharmaceutical R&D spending driven by aging populations, increasing pressure to accelerate drug development timelines, and rapid adoption of AI-driven solutions, all of which reinforce demand for Veeva’s integrated cloud platform.

Despite a temporary slowdown in FY2024, Veeva has re-accelerated growth, delivering 16.2% revenue expansion in FY2025 with improving revenue quality as subscription services now comprise roughly 84% of total revenue. The SaaS model continues to drive meaningful operating leverage, with significant margin expansion expected as the company transitions away from Salesforce, eliminating approximately $80 million in annual royalty payments by 2030.

Veeva’s dominant industry position, including approximately 80% market share in life sciences CRM and deep penetration across top pharmaceutical companies, creates high switching costs and a powerful competitive moat reinforced by regulatory complexity. Financially, the company maintains a fortress balance sheet with over $6.5 billion in net cash and strong free cash flow generation, enabling continued investment and strategic flexibility.

While near-term concerns around CRM competition and client renewals have pressured valuation, this appears largely sentiment-driven rather than fundamental. With multiple catalysts, including CRM migration success, AI monetization, and continued R&D platform expansion, Veeva presents a compelling long-term opportunity with favorable risk-reward skew and potential for sustained compounding growth.

Previously, we covered a bullish thesis on Veeva Systems Inc. (VEEV) by Francesco Ferrari in March 2025, which highlighted the company’s resilient high-ARR model, strong margins, and consistent cash flow generation. VEEV’s stock price has depreciated by approximately 29.91% since our coverage. Danny Green shares a similar view but emphasizes secular tailwinds, AI-led growth, and margin expansion from Salesforce independence.

Veeva Systems Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held VEEV at the end of the fourth quarter which was 57 in the previous quarter. While we acknowledge the risk and potential of VEEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VEEV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

]]> https://www.insidermonkey.com/blog/is-sofi-technologies-inc-sofi-a-good-stock-to-buy-now-2-1741794/ Sun, 26 Apr 2026 22:08:56 +0000 https://www.insidermonkey.com/blog/?p=1741794 Is SOFI a good stock to buy? We came across a bullish thesis on SoFi Technologies, Inc. on Joe Gannon’s Substack by Gannon Capital. In this article, we will summarize the bulls’ thesis on SOFI. SoFi Technologies, Inc.’s share was trading at $19.43 as of April 17^th. SOFI’s trailing and forward P/E were 49.82 and 32.36 respectively according to Yahoo Finance.

SFIO CRACHO/Shutterstock.com

SoFi Technologies has evolved from a niche student lender into a fully integrated financial “super app” and infrastructure platform, positioning itself as a disruptive force against legacy banking. The company initially targeted high-earning, low-risk borrowers overlooked by traditional banks, building a loyal customer base through differentiated member benefits and a strong brand ecosystem.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential

Over time, it executed a successful “unbundle and rebundle” strategy, expanding from lending into a comprehensive suite of financial services including banking, investing, and insurance, all within a unified digital interface. This ecosystem drives a powerful flywheel, where low-cost customer acquisition feeds into high-margin cross-selling, with approximately 40% of new products now adopted by existing members, highlighting strong engagement and scalability.

A key inflection point came with SoFi’s bank charter, which enabled it to fund loans using low-cost deposits rather than expensive external capital, significantly improving margins and unlocking sustained profitability. Its digital-only model further enhances efficiency, allowing the company to reinvest savings into competitive yields and customer growth.

Beyond consumer finance, SoFi’s technology platform, including Galileo and Technisys, provides critical backend infrastructure to fintechs, creating a high-margin, recurring revenue stream that supports a premium valuation. Additional catalysts include expansion into crypto infrastructure, AI-driven financial automation, small business services, and international markets, all of which broaden its total addressable market.

With consistent execution, accelerating revenue growth, and increasing operating leverage, SoFi Technologies appears well-positioned for continued compounding, supported by multiple structural advantages and long-term growth drivers.

Previously, we covered a bullish thesis on SoFi Technologies, Inc. (SOFI) by Oliver | MMMT Wealth in May 2025, which highlighted consistent revenue and EPS beats, strong membership growth, and improving profitability. SOFI’s stock price has appreciated by approximately 51.08% since our coverage. Joe Gannon shares a similar view but emphasizes on its super app evolution, technology platform, and long-term scalable growth drivers.

SoFi Technologies, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held SOFI at the end of the fourth quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of SOFI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOFI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

]]> https://www.insidermonkey.com/blog/is-penguin-solutions-inc-peng-a-good-stock-to-buy-now-1741700/ Sun, 26 Apr 2026 22:08:37 +0000 https://www.insidermonkey.com/blog/?p=1741700 Is PENG a good stock to buy? We came across a bullish thesis on Penguin Solutions, Inc. on InfoArb Sheets’s Substack. In this article, we will summarize the bulls’ thesis on PENG. Penguin Solutions, Inc.’s share was trading at $26.74 as of April 17^th. PENG’s trailing and forward P/E were 38.20 and 8.12 respectively according to Yahoo Finance.

Penguin Solutions, Inc. designs, builds, deploys and manages enterprise solutions worldwide. PENG is positioned as an emerging AI infrastructure and memory-centric technology company transitioning from a hyperscaler-dependent model toward a diversified enterprise, neocloud, and sovereign AI customer base. In Q2 2026, Penguin Solutions reported revenue of $343.0 million versus $365.5 million year-over-year, with Non-GAAP EPS flat at $0.52, reflecting a transitional quarter where mix shift outweighed top-line softness.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential

Despite the revenue decline, the company strengthened its strategic narrative as memory demand and pricing momentum supported performance, while Advanced Computing underwent a deliberate reset away from concentration risk. Management emphasized that underlying non-hyperscaler AI and HPC demand remains strong, with 50% growth in the first half and rising contribution mix, suggesting improving business quality beneath headline volatility.

Penguin Solutions’ Integrated Memory segment continues to act as the primary growth engine, benefiting from AI-driven storage intensity and constrained supply conditions, while Optimized LED remains stable with episodic tariff-related dynamics.

The strategic opportunity is increasingly centered on inference-driven AI infrastructure, particularly CXL-based memory systems and MemoryAI solutions, which could shift Penguin Solutions toward higher-margin system-level offerings over time. Although gross margin guidance was revised downward due to mix effects and memory cost inflation, EPS guidance improvement signals operational discipline and potential leverage from below-the-line efficiencies.

With a net cash balance sheet, improving customer diversification, and early enterprise adoption across financial services, healthcare, energy, and sovereign AI, Penguin Solutions presents a transitioning AI platform story. Valuation reflects skepticism on Advanced Computing, but inference shift, enterprise growth, memory scarcity support re-rating potential.

Previously, we covered a bullish thesis on Pure Storage, Inc. (PSTG) by Magnus Ofstad in March 2025, which highlighted subscription-driven platformization, resilient storage demand, and AI tailwinds. PSTG’s stock price has appreciated by approximately 37.74% since our coverage. InfoArb Sheets shares a similar view but emphasizes a broader AI infrastructure transition in Penguin Solutions (PENG), focusing on inference-led memory systems and enterprise diversification.

Penguin Solutions, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held PENG at the end of the fourth quarter which was 29 in the previous quarter. While we acknowledge the risk and potential of PENG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PENG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

]]> https://www.insidermonkey.com/blog/is-argan-inc-agx-a-good-stock-to-buy-now-1741770/ Sun, 26 Apr 2026 22:08:00 +0000 https://www.insidermonkey.com/blog/?p=1741770 Is AGX a good stock to buy? We came across a bullish thesis on Argan, Inc. on Draco’s Substack by Derek Yin. In this article, we will summarize the bulls’ thesis on AGX. Argan, Inc.’s share was trading at $ 597.88 as of April 17^th. AGX’s trailing P/E was 61.38 according to Yahoo Finance.

Christian Lagerek/Shutterstock.com

Argan Inc. (AGX) is an engineering, procurement, and construction firm delivering gas-fired power plants under a lump-sum turnkey model that is increasingly benefiting from AI-driven data center power demand. As hyperscalers and independent power producers accelerate buildouts, construction costs have risen from ~$1,000/kW to ~$2,500/kW, enabling higher contract values and margin expansion in a structurally constrained supply environment.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential

After significant historical losses across the industry, most EPC peers exited LSTK contracting, leaving AGX as one of the few scaled firms still executing fixed-price projects. This scarcity has become a structural advantage as developers prioritize cost certainty, while lenders favor LSTK structures that shift construction risk away from highly levered project finance vehicles, lowering financing costs and improving project viability.

AGX’s competitive positioning is further strengthened by its direct-hire labor model through The Roberts Company, which reduces exposure to subcontractor inflation in a tightening skilled labor market competing across LNG, renewables, and grid expansion projects. At the same time, hyperscalers are increasingly taking direct ownership of turbine procurement, lowering equipment exposure and allowing AGX to focus on higher-value construction execution, supporting margin capture.

Near-term visibility is reinforced by large-scale opportunities such as the Sandow Lakes multi-gigawatt project, linked to hyperscaler demand and broader data center infrastructure buildouts, which strengthens backlog growth and multi-year revenue visibility. With capacity constraints expected to persist through 2027, AGX is well positioned to continue benefiting from pricing power and margin expansion.

At ~16x forward EV/EBIT, the market does not fully reflect backlog durability or improving contract economics, implying meaningful upside as new awards reprice earnings power. While risks include commodity volatility and execution delays, structural demand growth and limited LSTK capacity create a favorable risk-reward skew.

Previously, we covered a bullish thesis on EMCOR Group, Inc. (EME) by CompanyCharts in April 2025, which highlighted U.S. infrastructure resilience, strong growth, cyclical stability, and undervaluation. EME’s stock price has appreciated by approximately 110.78% since our coverage. Derek Yin shares a similar view but emphasizes AI-driven data center EPC demand and LSTK contract scarcity driving margins in Argan (AGX) structural growth tailwinds.

Argan, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held AGX at the end of the fourth quarter which was 41 in the previous quarter. While we acknowledge the risk and potential of AGX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AGX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

]]> https://www.insidermonkey.com/blog/is-nlight-inc-lasr-a-good-stock-to-buy-now-1741727/ Sun, 26 Apr 2026 22:07:44 +0000 https://www.insidermonkey.com/blog/?p=1741727 Is LASR a good stock to buy? We came across a bullish thesis on nLIGHT, Inc. on r/ValueInvesting by Super_Collection_592. In this article, we will summarize the bulls’ thesis on LASR. nLIGHT, Inc.’s share was trading at $ 70.43 as of April 17^th. LASR’s forward P/E was 243.90 according to Yahoo Finance.

Photo by L N on Unsplash

nLIGHT, Inc. (LASR) is positioned as a high-power laser platform company with increasing strategic exposure to aerospace & defense, directed energy systems, and advanced optical sensing, alongside its legacy industrial and microfabrication applications. The company operates through two core segments: Laser Products, which accounted for 68.6% of 2025 revenue and delivered 39.2% gross margins, and Advanced Development, which represented 31.4% of revenue but carried lower 12.4% margins due to its R&D and prototype-heavy nature.

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In 2025, nLIGHT demonstrated a clear operational inflection, with revenue rising 31.6% year over year to $261.3 million, gross margins expanding sharply to 29.8%, and Adjusted EBITDA turning positive at $23.5 million, reflecting meaningful operating leverage as defense-driven demand scaled. Aerospace & Defense now dominates the business at 67% of revenue, growing 60% year over year, highlighting strong traction in directed-energy and laser sensing programs tied to U.S. government and prime contractors such as Northrop Grumman and Raytheon Technologies.

The investment thesis is anchored in the potential conversion of Advanced Development programs into high-margin Laser Products revenue, where embedded design wins and long qualification cycles can create durable switching costs and program visibility. With $161.6 million in backlog and $184.4 million in unfunded government contract value, nLIGHT has substantial near-term and medium-term revenue visibility, while its vertically integrated semiconductor and fiber laser stack strengthens its technological moat in mission-critical applications.

The February 2026 equity raise of approximately $201 million further enhances balance sheet flexibility to scale defense production capacity. While customer concentration and government dependency remain risks, the accelerating shift toward productized defense laser deployments and expanding directed-energy adoption support a bullish re-rating scenario, where sustained margin expansion and backlog conversion could drive significant upside in LASR.

Previously, we covered a bullish thesis on Photronics, Inc. (PLAB) by Virtual_Seaweed7130 in April 2025, highlighting semiconductor photomask leadership, deep discount to tangible book value, and AI-driven wafer demand upside. PLAB’s stock price has appreciated by approximately 173.79% since our coverage. Super_Collection_592 shares a similar view but focuses on nLIGHT, Inc. (LASR), emphasizing defense-led growth, margin expansion, and backlog conversion as key re-rating drivers.

NLIGHT, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held LASR at the end of the fourth quarter which was 34 in the previous quarter. While we acknowledge the risk and potential of LASR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LASR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

]]> https://www.insidermonkey.com/blog/is-limbach-holdings-inc-lmb-a-good-stock-to-buy-now-1741724/ Sun, 26 Apr 2026 22:07:05 +0000 https://www.insidermonkey.com/blog/?p=1741724 Is LMB a good stock to buy? We came across a bullish thesis on Limbach Holdings, Inc. on InfoArb Sheets’s Substack. In this article, we will summarize the bulls’ thesis on LMB. Limbach Holdings, Inc.’s share was trading at $93.56 as of April 17^th. LMB’s trailing and forward P/E were 28.97 and 21.60 respectively according to Yahoo Finance.

Piyapong Wongkam/Shutterstock.com

Limbach Holdings, Inc. is a building systems solutions company focused on mechanical, electrical, plumbing and controls (MEPC) services for mission-critical facilities including healthcare, data centers, industrial manufacturing, life sciences and higher education. In Q4 2025, the company delivered strong growth with revenue of 186.9 million versus 143.7 million year ago while adjusted EPS rose to 1.40 from 1.15 and GAAP EPS increased to 1.02 from 0.82 reflecting improving profitability and operating leverage.

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The investment story is increasingly centered on Limbach’s transition toward higher value owner direct relationship ODR work which reduces reliance on lower margin general contractor projects and supports more durable recurring revenue growth. Growth is being driven by both ODR expansion and acquisitions but the next leg of value creation depends on margin expansion particularly in acquired businesses alongside accelerating traction in data centers healthcare and national accounts.

Bookings of 225 million versus 187 million revenue indicate strong demand momentum supporting a stronger 2026 outlook while early hyperscale data center wins and expanded healthcare planning engagement suggest longer duration and higher value customer relationships.

Management increasingly positions Limbach as a mission critical infrastructure platform rather than a traditional contractor emphasizing bundled solutions national account scaling and recurring service content which supports potential multiple expansion.

While integration execution and Pioneer margin improvement remain near term watchpoints the company benefits from strong cash generation improving balance sheet flexibility and a structural shift toward higher return ODR revenue positioning Limbach for multi year compounding with improving execution visibility ahead now

Previously, we covered a bullish thesis on Carlisle Companies Incorporated (CSL) by Max Dividends in May 2025, which highlighted long-term construction demand, modernization tailwinds, and strong earnings expansion potential. CSL’s stock price has depreciated by approximately 4.68% since our coverage. InfoArb Sheets shares a similar view but emphasizes Limbach Holdings’ ODR-driven shift, data center traction, and booking-led execution upside.

Limbach Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held LMB at the end of the fourth quarter which was 23 in the previous quarter. While we acknowledge the risk and potential of LMB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LMB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

Denys Prykhodov / Shutterstock.com

eBay presents a compelling investment case as a dominant, resilient platform in the global resale economy. Despite its perception as an aging e-commerce relic, the company processes over $80 billion in annual gross merchandise volume (GMV) and operates a two-sided marketplace connecting individual sellers, professional merchants, and small businesses with buyers worldwide. Unlike Amazon, eBay avoids first-party retail operations and fulfillment risks, deriving revenue primarily from transaction take rates, promoted listings, and payment services.

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This asset-light structure produces high operating margins, strong free cash flow, and capital-efficient growth. Strategic refocusing on high-value “focus categories” such as collectibles, refurbished electronics, auto parts, and luxury goods has allowed eBay to trade scale for quality, investing in authentication, grading, and seller tools to deepen trust, improve conversion, and monetize transactions beyond mere volume.

Q4/FY25 results reflected this approach, with GMV up 8% YoY to $21.2 billion, revenue up 13% to $2.96 billion, and EPS rising 13% to $1.41, driven by advertising growth, high-margin services, and strong U.S. performance. Enthusiast buyers, though only 12% of the user base, account for 70% of GMV, providing durable revenue. The recent $1.2 billion acquisition of Depop strengthens eBay’s foothold with Gen Z buyers and the fast-growing circular fashion market, while integrating Depop into eBay’s infrastructure offers monetization and operational leverage, though near-term margin dilution is expected.

Guidance for 2026 indicates continued GMV growth of 9-10% and EPS growth of roughly 10%, with medium-term prospects for mid-single-digit GMV growth, margin expansion, and low-teens EPS growth. At 15x earnings, 16x FCF, and a structurally higher-margin, predictable business model, eBay trades attractively relative to peers, with multiple catalysts for revenue, margin, and shareholder returns, including buybacks and dividends, making it a uniquely durable platform investment.

Previously, we covered a bearish thesis on eBay Inc. (EBAY) by Kostadin Ristovski, ACCA in November 2024, which highlighted flat GMV, limited revenue growth in key markets, high valuation, and risks in capital allocation. EBAY’s stock price has appreciated by approximately 74.19% since our coverage. Daan | InvestInsights shares a contrarian view but emphasizes eBay’s resilient platform, strong free cash flow, and growth from strategic focus and acquisitions.

EBay Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held EBAY at the end of the fourth quarter which was 56 in the previous quarter. While we acknowledge the risk and potential of EBAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EBAY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

Lukiyanova Natalia frenta/Shutterstock.com

Floor & Decor Holdings, Inc. (FND), often called the “Costco of flooring” by Charlie Munger, has seen its share price decline roughly 45% since previous coverage, reflecting investor concerns over cyclical weakness in the housing market. FND specializes in flooring tiles—stone, wood, and marble—unlike broader home improvement retailers such as Home Depot and Lowe’s, making its sales more sensitive to existing home sales (EHS), which have dropped from historical averages of 5.5 million to 3.9 million.

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This has led to compressed operating margins, falling to 6% from the historical 12%, driven by homeowners installing fewer rooms, shifts to cheaper Luxury Vinyl Plank (LVP), and slower foot traffic. Expansion plans for new stores, while indicating growth ambition, may exacerbate margin pressure given gestation periods of 18–24 months.

Despite these headwinds, FND retains structural advantages that support a bull case. The company benefits from strong vertical integration, sourcing tiles directly from over 26 countries, yielding gross margins of 43% versus 33% for peers, and allows FND to undercut smaller competitors while serving as a preferred partner to “Pro” customers—small contractors who are loyal, high-volume buyers. This combination of scale, market share consolidation, and sticky B2B relationships provides resilience compared to smaller specialty flooring players struggling in the current environment.

The stock’s decline reflects multiple compression from 40x to 30x trailing PE and debate over whether its moats are sustaining or commoditizing. Interest rate cuts could revive EHS and discretionary flooring projects, while geopolitical and energy concerns create uncertainty in the near term. Ultimately, FND offers a compelling risk/reward at current valuations if cyclical housing factors normalize, while its long-term moats suggest potential for margin recovery and structural growth, even amid cyclical volatility.

Previously, we covered a bullish thesis on Costco Wholesale Corporation (COST) by FluentInQuality in March 2025, which highlighted its membership-driven revenue, operational efficiency, and scale advantages. COST’s stock price has depreciated by approximately 4.68% since our coverage due to broader macro volatility. @ValueInvesting shares a similar view but emphasizes Floor & Decor Holdings, Inc. (FND)’s vertical integration, loyal B2B “Pro” customers, and resilience amid housing market weakness.

Floor & Decor Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held FND at the end of the fourth quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of FND as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FND and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None. 

electronics-6055226_1280

Lattice Semiconductor Corporation (LSCC) is a leading player in the niche market of low-power Field Programmable Gate Arrays (FPGAs), offering a differentiated value proposition through its reprogrammable chips that can be updated post-deployment. This capability positions LSCC as a critical enabler of Edge AI, allowing customers to adapt hardware to evolving AI models without costly physical replacements.

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As Edge AI adoption accelerates, LSCC is increasingly aligning its strategy toward high-growth applications such as robotics, humanoids, and autonomous vehicles, with a particular focus on ultra-low-power use cases under 1 watt. This specialization provides a competitive edge in a segment where efficiency and adaptability are paramount, and recent design wins, including an industrial robotics contract in Japan, highlight growing traction.

While current revenue growth stands at a modest 2.7%, the company’s strong gross margins of 68.2% underscore the premium nature of its offerings, and future growth expectations remain robust. Consensus estimates point to a sharp acceleration, with revenue projected to grow 33.1% and EBITDA 38.7% by FY26, reflecting the scaling impact of its Edge AI exposure. Despite relatively low current operating margins of 2.9%, the operating leverage inherent in its model suggests significant upside as revenues inflect.

Although LSCC trades at elevated multiples, including 19.0x NTM EV/Revenue, 52.3x EV/EBITDA, and 62.4x P/E, these valuations appear justified given its strategic positioning in a rapidly expanding market. Overall, LSCC represents a compelling investment opportunity, offering leveraged exposure to the Edge AI theme with meaningful long-term growth potential.

Previously, we covered a bullish thesis on Advanced Micro Devices, Inc. (AMD) by StockOpine in May 2025, which highlighted strong data center growth, rising AI accelerator demand, EPYC market share gains, and expanding hyperscaler adoption. AMD’s stock price has appreciated by approximately 139.10% since our coverage. Oliver | MMMT Wealth shares a similar view but emphasizes on Lattice Semiconductor Corporation’s niche dominance in low-power FPGAs and its positioning in Edge AI applications.Top of FormBottom of Form

Lattice Semiconductor Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held LSCC at the end of the fourth quarter which was 32 in the previous quarter. While we acknowledge the risk and potential of LSCC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LSCC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.