This 10X Stock Is Thriving Thanks to the Red-Hot Memory Trade -- and Projects 1,000% Profit Growth Ahead

• Netlist (NLST) demonstrates exceptional price momentum, recently hitting a new 3-year high.
• Shares are up a whopping 903% over the past 52 weeks.
• NLST maintains a 100% “Buy” technical opinion from Barchart.
• Analyst sentiment is mixed on valuation, but NLST’s strong growth and momentum currently outweigh valuation concerns.

Today’s Featured Stock

Valued at $2.5 billion, Netlist (NLST) designs and manufactures high-performance memory subsystems for the server, high-performance computing, and communications markets. The company’s memory subsystems are developed for applications in which memory plays a key role in enabling overall system performance. These applications include tower servers, rack-mounted servers, blade servers, high-performance computing clusters, engineering workstations, and telecommunication switches. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. NLST checks those boxes. The Trend Seeker issued a new “Buy” signal on Sept. 23. Since that signal, NSLT is up 13.05%.

Barchart’s Technical Indicators for Netlist

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Netlist hit a 3-year high of $7.12 on Oct. 7.

• Netlist has a Weighted Alpha of 341.62.
• NLST has a 100% “Buy” opinion from Barchart.
• The stock has gained 903.23% over the past 52 weeks.
• Netlist has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $6.63 with a 50-day moving average of $5.67.
• NLST had 5 highs and gained 18.11% in the last month.
• 60-month beta of 1.50.
• Relative Strength Index (RSI) is at 61.53.
• There’s a technical support level around $5.9033.

Don’t Forget the Fundamentals

• $2.5 billion market capitalization.
• Revenue is expected to grow 291.30% this year and another 23.03% next year.
• Earnings are estimated to increase by 1,066.67% this year and an additional 4.60% next year.

Analyst and Investor Sentiment on Netlist

• Wall Street analysts followed by Barchart give the stock 1 “Strong Buy” and 1 “Hold” opinion with a price target of $15.
• Value Line rate the stock “Above Average.”
• Morningstar thinks the stock is 56% overvalued with a fair value of $3.74.
• CFRA’s MarketScope does not rate the stock.
• 16,480 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.”
• TipRanks’ analysts have a consensus price target of $15.
• Short interest is 4.45% of the float with 2.31 days to cover.

The Bottom Line on Netlist

The stock exhibits exceptional growth and stock momentum, with solid profitability and encouraging earnings revisions. Analysts are split on valuation metrics, but the strong growth and momentum outweigh the valuation concerns.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.