This Tech Stock Might Have 50% Worth of Gains To Offer in 2024

This Tech Stock Might Have 50% Worth of Gains To Offer in 2024

Harmonic (HLIT) is a tech stock you might consider buying if you are interested in value buys. Trading at under $12, HLIT is down 9.5% year-to-date. While that doesn’t read optimistic, Tradingbiz analyst Rahul Nambiampurath believes that it might have the potential to surge 50% in months to come.

“As the demand for high-quality, uninterrupted video streaming continues to surge, Harmonic’s advanced technology positions it to lead the market. The company’s commitment to innovation and its strong partnerships will drive significant growth, making it a key player in shaping the future of digital content delivery,” mentions Rahul.

WHAT MAKES HARMONIC (HLIT) A VALUE BUY RIGHT NOW?

Rahul has closely analyzed Harmonic’s business model and come up with the following reasons why it is poised for growth:

Industry leadership: Trusted by over 5,000 companies worldwide, including major names like CNN and Comcast.

Technological innovation: Cutting-edge technology for gigabit internet services and high-end video streaming

Strong customer base: Established relationships with significant Tier-1 companies like Charter and Comcast

Financial goals and projections: Management’s goal to reach $1.0 billion in revenue and $254 million in adjusted EBITDA by 2026

Revenue and earnings: Q1 2024 revenue of $122.1 million exceeded forecast despite being down year-over-year

Growth in vCMTS space: Harmonic’s cOS remains the leader in the virtualized Cable Modem Termination System (vCMTS) market

Expansion plans: Plans for multi-year rollouts with key customers, ensuring steady revenue growth.

Rahul adds that the company’s ambitious financial goals of reaching $1.0 billion in revenue and $254 million in adjusted EBITDA by 2026, combined with its leadership in the virtualized Cable Modem Termination System (vCMTS) market and plans for multi-year rollouts, highlight its potential for steady revenue growth.

Despite a year-over-year revenue dip, Q1 2024 results exceeded forecasts, showcasing Harmonic’s resilience and growth trajectory.

ANALYZING HLIT’S PRICE ACTION

Besides the fundamentals and financials, Rahul also spent considerable time reading HLIT’s daily price chart. Even though the lack of trading volume is evident, it is picking up with HLIT currency trading inside a pennant. A breach above the upper trendline needs to be monitored, with $13.71 being a key resistance level.

Per the Fibonacci levels associated with the previous swing highs and lows, HLIT’s first major hurdle would be $15.84. Once breached, it has the legs to hit $17.93.

Abdullah Hanif

Forex Trader | Risk Management | Forex Account Manager | Prop Firm account manager | Signals Provider | Market Analyst | Foreign Exchange Trader | Trading Mentor/Coach.

4 个月

Way to go! Keep those awesome updates coming! -I believe tech stocks, especially in AI and innovation, show significant potential in 2024. -Conduct thorough research on financial health, market position, and growth prospects. -Diversify your portfolio across sectors to manage risks effectively. -Monitor market trends closely and time your trades strategically. -Stay updated with news and earnings reports for informed decision-making. Buy when there's blood in the streets, even if the blood is your own.

Luis Dhaeniel Valdellon

Mentor at The Market Arts

4 个月

Great analysis of Harmonic's (HLIT) potential as a value buy! The writer has provided detailed insights and projections. -This content is significant as it highlights key factors making Harmonic a strong candidate for investment despite its current undervaluation. -The company's leadership in technology and its solid customer base with major names like CNN and Comcast underscore its growth potential. -Investors should watch for technical indicators, such as the breach of key resistance levels, which could signal a significant price surge. For other readers, consider exploring Harmonic further as a promising addition to your investment portfolio!

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Micheal Ukadike

Content writer| Financial Market Analyst| Social media manager

4 个月

Well researched view on these stocks, especially the HLIT -the stock has been trading on the downside, and is just now coming out of the correction phase -after making a double bottom, i would like to see it trading above $14 -this would confirm that the buyers are ready to start trading higher with aim to tackle the all time high of $18 Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.

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Naaim Sajjad - CAMS

AML | Compliance | Crypto | Fraud | Memes

4 个月

Excellent analysis ?? -I think sometimes idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Harmonic -this is not to say that the company presents the best investment opportunity around, but I think profitability is a key component to success in business. -Harmonic's earnings per share took off for last 3 years. -Harmonic's earnings per share have been soaring,with growth rates sky high. -The strong improvement suggests the businesses is humming along. -Harmonic is certainly doing some things right and is well worth investigating. ??

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