Revealed: Motley Fool's Favorite Semiconductor Stock (Apple Invested $400 Million)

Intro mle fool claims Apple just invested $400 million in a small company which will cause this stock to explode however they won't tell you the name of this small company unless you buy their newsletter but they left enough clues in the presentation to figure out the stock and I reveal it here for free if you appreciate me doing this just drop a like And subscribe also make sure to click the link in the description to check out Alpha picks I reviewed hundreds of stock picking services and this one is by far the best and has been crushing the market since Inception plus you get $50 off if you use my link Motley Fool Stock Picking History before I reveal the stock mle fool is currently pitching let's look at the performance of their past stock picks back in October 2022 mle fool recommended asml and called them the most important company in the world because of their role in the semiconductor sector this stock has done very well since and has doubled since October 2022 in July 2023 full recommended digital advertising company the trade desk and the stock has done well since then and has been beating the market in November 20 23 the fool recommended five AI stocks and they were alphabet Amazon meta dobo and Propel Holdings so far alphabet is up but it isn't beating the market Amazon is up and is also beating the market in this time period meta has performed the best out of these three and is beating the market handily dobo is down slightly since November 2023 Propel Holdings is up an insane 200% in less than a year in February 2024 mle fool recommended Arista networks a record 14th time and this stock was was another winner for them in April 2024 mle fool recommended two more AI stocks the first was crowd strike which was doing well until they had a catastrophic security failure Microsoft so far is up slightly but nothing too major as of yet let's reveal Stock Reveal the stock in the current teaser now typically I like to break the teaser down and look at all the clues but this headline is all we got from mly fool still it's enough to figure out the stock the stock being pitched is coherent and the ticker is C HR the company used to be known as 2-4 but changed their name to coherent last year coherent is a global technology company that provides lasers Optical materials and related products for a wide range of Industries including Communications Electronics and Industrial applications known for its expertise in photonics and precision technology coherent serves sectors such as Automotive healthc Care Aerospace and semiconductor manufacturing recently Apple made a significant investment into coherent which aligns with Apple's ongoing strategy to secure its supply chain and enhance its technological capabilities this investment focuses on advancing Apple's interest in micro LED technology a NextGen display technology expected to feature in future Apple devices microed displays offer several benefits such as better brightness efficiency and Longevity compared to current OLED screens my rating for this Stock Analysis stock is hold coherent would have been an excellent stock to buy a year ago but now I feel it's overvalued after it gained over 100% since last summer the financials are decent but not Stellar this company is growing fast but with a forward PE of 26 I think I'll wait for the price to drop before buying let's look at the stock closer now and see why I think it's a hold first off coherent has seen a lot of attention from the market because of its role in advanced laser Technologies photonics and semiconductors these are crucial Industries especially as the world moves toward more sophisticated applications in AR VR and AI areas apple is heavily involved in that large investment from Apple into coherence signals their confidence in the company's long-term potential however Investments like this often take time to bear fruit and right now we haven't seen the immediate financial impact of that partnership looking at their financials coherence revenue for the fiscal year 2023 was around 4 billion reflecting a 133% year-over-year growth however their net income has struggled posting a loss of about 1.2 billion due to integration cost related to mergers and Acquisitions coherent Acquired finar and two- 4 which are critical moves for long-term growth but these are expensive Ventures investors should be patient as coherent digest these Acquisitions and starts to see synergies in its operations right now though we're not seeing immediate profitability in terms of valuation coherence price to sales ratio is sitting around 1.7x which is quite reasonable compared to some of its Tech peers but their price to earnings ratio is currently negative because of those losses I mentioned earlier so it's not attracting momentum investors at at the moment this is why the stock is a hold coherent is laying the groundwork for future success but until we see sustained profitability and the market settles down the risk reward profile leans toward patients in conclusion coherent has great potential with its exposure to high growth sectors and its partnership with apple but it's not without risks the stock will likely stay range-bound in the near- term as investors wait for more clear-cut results holding coherent now means you're betting on long-term technological Trends but it's still too early to call this a buy I'm trying Better Stock Than Motley Fool's something new in this video and if you like it let me know in the comments so I should do it more in the future Seeking Alpha is my favorite stock research tool and their quants have been studied by thirdparty researchers and have been proven to be Market beating coherent is in the electronics components industry and I'm going to show you seeking Alpha's number one stock in this industry that comes with a strong buy rating if you would like to access this tool for yourself and research seeking Alpha's Quant ratings for all stocks just click the link in the description to try it for yourself for 7 Days completely free according to Seeking Alpha quants TDK Corporation would be a better Electronic Component stock if this industry interests you seeking alpar rank stocks based on valuation growth profitability momentum and revisions TDK has an a grade for all those factors except for valuation when tdk's stock was in the $52 $48 range from February 2024 to May 2024 the stock was a strong buy if you would have bought during this time you would have gotten nice 25% gain in about 6 months from May to August the stock was rated a hold as the stock price Rose and then starting in August the stock was once again put in the strong bu rating when the EPS was revised as you can see the quants have basically perfectly called this stock so far obviously this doesn't mean going forward this stock will do the same but I trust these quants and feel TDK is a superior stock to coherent so if you're interested in a company like coherent but think it's a hold like I do TDK might be a better option just make make sure you do your own research on the stock before buying if you'd prefer Best Place To Get Stock Picks Seeking Alpha to just pick stocks for you you should check out their Alpha pick service I've reviewed hundreds of stock picking services and this one performs the best since its Inception two years ago it's absolutely been crushing the market and has tripled the returns of the market in that time period And if you click the link in the description you get $50 off this service so make sure to click that link now and start investing the smart way