Marvell and Globalstar have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – March 19, 2025 – Zacks Equity Research shares Marvell Technology MRVL as the Bull of the Day and Globalstar Inc. GSAT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Palantir Technologies Inc. PLTR and NVIDIA Corp. NVDA.Here is a synopsis of all four stocks.Bull of the Day:Nvidia held its GPU Technology conference yesterday and could start boosting market sentiment for advancements in artificial intelligence (AI) again. Outside of Nvidia, one stock that investors will certainly want to pay attention to in regards to the AI revolution is Marvell Technology which sports a Zacks Rank #1 (Strong Buy) and lands the Bull of the Day.Thanks to its AI offerings, Marvell Tech is still one of the more appealing growth stocks to consider. Furthermore, now may be an ideal time to buy MRVL after what appears to be a “healthy correction” in recent weeks.Marvell Technology’s AI ApplicationsBased in Wilmington Delaware, Marvell Tech is a key player in the AI landscape, providing advanced semiconductor solutions for data infrastructure. The company’s AI offerings include custom AI chips, connectivity solutions, and data center innovations, which are crucial to handling the demands of AI applications.1. Custom AI ASICs: Marvell develops application-specific integrated circuits (ASICs) tailored for AI and machine learning tasks. These are used in data centers and automotive AI systems, offering high performance and reliability.2. Accelerated Infrastructure: Marvell provides semiconductor solutions that enhance computing, connectivity, and storage infrastructure, which are essential for AI applications.3. AI Connectivity: Marvell Tech focuses on technologies like optical interconnects and high-bandwidth memory interfaces to support the massive data demands of AI systems.The Leveling of Marvell Technology’s ValuationThe broader market selloff has created better buying opportunities in recent weeks and Marvell Tech certainly stands out in this regard.There is no doubt that the hype for Marvell Tech’s stock is there with MRVL hitting 52-week peaks of $127 a share just two months ago. However, in the aftermath of a 10% correction among the tech-centric Nasdaq, MRVL trades just under $70 and at a much more reasonable 25.6X forward earnings multiple. This compares to a one-year high of 151.4X over the last year and a 12-month median of 95.6X.Rising EPS Estimates Offer SupportSupporting Marvell Tech’s more reasonable P/E valuation and suggesting its stock could start to rebound is the trend of positive earnings estimate revisions.Driven by its AI initiatives, Marvell Tech’s annual earnings are expected to soar 75% in its current fiscal 2026 to $2.75 a share, versus EPS of $1.57 in FY25. Plus, FY27 EPS is projected to spike another 28% to $3.52.Most importantly to the assumption of more upside in MRVL and investor sentiment, EPS estimates for FY26 and FY27 are slightly up in the last month and have now risen over 2% and 1% in the last 60 days respectively.Bottom LineExpecting double-digit top line growth for the foreseeable future as well, Marvell Tech’s annual sales projections are edging toward $10 billion by FY27. This stellar expansion will likely lead to the rush into MRVL shares again. That said, now may be the time to buy MRVL considering Marvell Tech’s more reasonable valuation.Bear of the Day:The Nasdaq has fallen 10% over the last month and Globalstar Inc. is a tech stock that could have more downside risk ahead.The provider of satellite telephones and data services has seen its stock plummet over 30% year to date, and unfortunately, the decline could continue. Considering such, Globalstar's stock lands a Zacks Rank #5 (Strong Sell) and the Bear of the Day.Market Sentiment & Global StarDespite a partnership with tech behemoth Apple in regards to satellite communication technology which is used in iPhones, market sentiment has worn thin for Globalstar amid ongoing tariff concerns and economic uncertainty.This comes as Globalstar reported record revenue and free cash flow (FCF) in 2024 but has struggled to cross the probability line since going public in 2006 (Illustrated in the EPS chart below). Furthermore, analysts have expressed concerns about the sustainability of Globalstar’s free cash flow with the company declining to give any future projections on FCF in its most recent Q4 earnings call in late February.Monitoring Globalstar’s Balance SheetAlthough Globalstar’s cash & equivalents ballooned from $57 million to $391 million at the end of 2024, what may further concern investors is that it has $1.71 billion in total assets but $1.35 billion in total liabilities.While Globalstar is still solvent for now, this certainly raises the alarm about future free cash flow and the company’s valuation.Globalstar’s Uncomfortable ValuationTaking away from Globalstar’s top line growth is that at $20 a share, GSAT still trades at 10X sales with its Zacks Satellite and Communication Industry average at 0.7X and the S&P 500 at 5.2X. Of course, P/E valuation can’t be used since Globalstar isn’t profitable.Conclusion & Final ThoughtsThe bottom line is that it looks risky to invest in Globalstar’s stock at the moment. Investors haven’t been swayed by a partnership with Apple because Globalstar may be overly reliant on the tech giant as its primary customer. To that point, Apple accounts for 85% of Globalstar’s satellite network infrastructure.Also, keeping in mind that Globalstar has been public for almost 20 years, the benefit of the doubt has started to go out the window in terms of its future earnings potential. This makes the company’s sales growth less impressive and spurs doubt about operating efficiency at this stage in its corporate life.Additional content:Here’s Why Palantir Stock Is a Buy Despite 26% Fall in a Month Shares of Palantir Technologies Inc. are down 26% from their record high on Feb. 18 and have mostly traded in the red over the past month. Palantir faced a recent decline despite being the market favorite for the past year with a 266.9% surge, outpacing NVIDIA Corp.’s 33.8% gain. The stock was also the best S&P 500 performer in 2024.So, let’s analyze the reasons behind this downturn, and why the Palantir stock is still a buy.Why is Palantir Stock Price Down in a Month?After its initial public offering boom in 2020, the Palantir stock gyrated for nearly four years. However, with the advent of artificial intelligence (AI), Palantir shares rebounded. After all, generative AI is expected to help Palantir improve its data analytics competencies.But is generative AI boosting Palantir’s growth? Before the introduction of ChatGPT, in 2020, Palantir’s revenues jumped 47%. However, last year, Palantir’s revenue growth rate slowed to 29%, suggesting generative AI didn’t significantly benefit Palantir, and the stock remained susceptible to unwarranted events.Thus, when President Trump signed executive orders in the Oval Office last month, including a plan to reduce the defense budget by 8% annually for five years, the Palantir stock was undesirably impacted. This is because government clients in the United States constituted about 42% of Palantir’s revenues in 2024.Reasons to be Bullish on Palantir StockDespite the recent setbacks in share price, there are many reasons to remain optimistic about the Palantir stock. The company’s revenues in the fourth quarter jumped 36% from a year ago, and if Palantir sustains this growth, its revenues could nearly double in two years.In the fourth quarter, Palantir’s revenues improved, banking on an uptick in customer base. The company increased its customer count by 43% from a year ago. Further, Palantir’s expansion into the private sector beyond government clients will continue to boost its revenue growth. For the current year, Palantir expects its revenues to increase 31% year over year, way more than Wall Street estimates.Palantir’s remaining performance obligation in the quarter ending on Dec. 31, 2024, exceeded the present revenue growth, indicating strong growth soon. High demand for Palantir’s Artificial Intelligence Platform (AIP) highlights expansion opportunities as it automates tasks beyond human capabilities.AIP’s popularity has drawn both existing and new customers. Most importantly, with existing customers driving business, Palantir needs to spend less on revenue generation, thus boosting growth margins and potentially increasing the company’s market capitalization.Palantir Stock is a Must-Buy NowWith Palantir’s shares well-poised to eventually gain strength in the near term, banking on an increase in customer bases and AIP’s acceptance, it is worth buying the stock now. If the firm establishes itself in the expanding generative AI market, PLTR’s stock price may significantly increase over the next decade.Palantir, rightfully, has a Zacks Rank #2 (Buy), with an expected earnings growth rate of 36.6% this year. The Zacks Consensus Estimate of 56 cents for PLTR’s earnings per share (EPS) is up 40% from a year ago.You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Globalstar, Inc. (GSAT): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks