Recent market headlines are buzzing with worries about sluggish growth and policy uncertainty since the November elections draw near. Nevertheless, there are also potential tailwinds, especially with the anticipated cuts inside the Fed’s key rates of interest.
Against this backdrop, as on a regular basis, investors are on the look out to search out the stocks which is perhaps best positioned for current conditions. The Smart Rating, an AI-driven data collection and collation tool from TipRanks, may help with that.
The Smart Rating scans the full volume of the stock market’s data, and uses it to examine every public stock to a set of things which is perhaps known to correlate with future outperformance. The result’s a straightforward rating for every stock, on a scale of 1 to 10, with the ‘Perfect 10’ indicating stocks with solid upside potential. And in an uncertain market environment, that’s an indicator that investors should give a more in-depth look.
So, let’s do that. Using the TipRanks database, we’ve looked up the huge picture on two such top-scoring stocks. The Street sees them as Strong Buys, with a great deal of upside – and brought with the ‘Perfect 10s’ from the Smart Rating, that’s a combination that deserves closer scrutiny from investors. Here’s the lowdown.
Semtech Corporation (SMTC)
We’ll start with Semtech, considered considered one of the smaller firms working inside the semiconductor chip industry. Semtech’s product line contains a big choice of analog and mixed-signal chips, in a position to powering smaller, faster, and smarter electronic devices. The company offers chips and technology to meet the needs of wireless RF, circuit protection, signal integrity, broadcast video, expert AV, cellular IoT solutions, and power management – a broad range of applications which have a big impact on today’s digital world.
The company has been in business since 1960 and has built its status on being a successful area of interest player; while Semtech is a small company compared with the industry giants, it still reported greater than $868.76 million in revenues for its fiscal 12 months 2024.
More recently, we discover that the company saw $215.4 million in revenues during its last reported quarter, fiscal Q2 2024 (July quarter). This was down almost 10% year-over-year, but beat the forecast by $3.13 million. Semtech’s bottom-line earnings came to 11 cents per share by non-GAAP measures, a penny higher than had been expected.
Baird analyst Tristan Gerra is impressed by Semtech, and sees the company benefitting from a big footprint – the company has its hands in a lot of segments of the chip industry. Gerra writes, “Ongoing strength in optical components demand, driven by AI, plays on the core of Semtech’s competencies throughout its product range. Semtech’s R&D team is second to none with the company notably well positioned in ACC with recent AI engagements, LPOs (possible ramp for Semtech starting F2H26), and 10G PON inside the U.S. (initial ramp engagement possibly F2H26) amongst others. 400G/800G ramps are complementing Signal Integrity growth this 12 months while the timing of Semtech’s ramp on the Blackwell platform stays intact with potential upside to the previously-provided base case.”
Looking ahead, the analyst puts an Outperform (Buy) rating on SMTC shares, and his $80 price goal implies a gain of 97% on the one-year horizon. (To watch Gerra’s track record, click here)
Overall, Semtech’s shares get a Strong Buy consensus rating from the Street, based on 11 recent reviews with a lopsided 10 to 1 breakdown favoring Buy over Hold. The stock is trading for $40.59, and its $56.44 average price goal suggests a one-year upside of 39%. (See SMTC stock forecast)
Rubrik, Inc. (RBRK)
Let’s follow tech, but shift gears a bit and try cybersecurity. Rubrik is a Silicon Valley tech firm engaged in developing and distributing cloud data management and data security systems, a crucial area of interest in a digital world where increasingly more elements of business depend on data and data evaluation – and on maintaining the integrity of that data and its sources. Rubrik offers an array of products and solutions for enhanced data security, protecting its customers from cyberattacks, malicious insiders, and external disruptions. Whether your data is on enterprise systems or on the cloud, Rubrik can secure it.
The company’s service is popular, as shown by a couple of of its financial numbers. Rubrik can boast of a high level of annual recurring revenue; the subscription ARR totaled over $919 million at the highest of July this 12 months, and the company had 1,969 customers with subscription ARRs of greater than $100,000 each. That’s a solid base of repeat business.
Rubrik went public earlier this 12 months, holding its IPO in April. The stock began trading on April 25, and the offering was upsized from the initial filing. Throughout the event, Rubrik put 23,500,000 shares available in the marketplace at $32 each, and raised roughly $752 million in gross proceeds. The stock has been volatile inside the months since the IPO.
After we take a have a look at Rubrik’s financials, we discover that the company has released two sets of quarterly results since the IPO. Probably probably the most recent, released on September 9, covered fiscal Q2 2025 and showed total revenues of $204.95 million. That total was reportedly up greater than 35% year-over-year and beat expectations by $8.74 million. The company’s bottom line was a non-GAAP EPS lack of 40 cents per share – but regardless that the EPS was negative, it was still 9 cents per share higher than the forecast.
This recent cybersecurity stock has caught the eye of Cantor analyst Yi Fu Lee, who sees the company as a sound selection for investors serious about tech innovators. Lee writes, “The current focus for Rubrik is responsible growth, and we consider it’s taking market share from legacy vendors that lag behind on innovation. We recommend investors serious a few mid-cap tech growth name that has recently undergone a cloud transformation to optimize business acceleration for the next several years take a deep take a have a look at Rubrik. Rubrik began trading on the NYSE on April 25 and has traded off its peak of $40 by over 20%. We consider the volatile C1H24/F1H25 earnings season for the cybersecurity software sector is presenting a beautiful entry point.”
These comments support Lee’s Chubby (Buy) rating here, and his $50 price goal points toward a one-year gain of 62.5%. (To watch Lee’s track record, click here)
There are 11 recent analyst reviews on record for Rubrik, they typically are all positive – for a unanimous Strong Buy consensus rating. The shares have a $44.90 average price goal and a $30.75 trading price, together suggesting a 46% increase by this time next 12 months. (See RBRK stock forecast)
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Disclaimer: The opinions expressed on this text are solely those of the featured analysts. The content is supposed to be used for informational purposes only. It’s slightly mandatory to do your individual evaluation before making any investment.