Daily Stock Pick: September 21st, 2021

Stocks were looking to bounce back this morning after yesterday’s sell-off.  In yesterday’s session, the Nasdaq shed 2.2%, the Dow dropped 1.8%, and the S&P 500 slid 1.7% for its steepest loss since May.  The three benchmarks were higher in early trading as bargain hunters stepped in.

JPMorgan’s chief global strategist Marko Kolanovic is holding firm on his prediction of 4,700 for the S&P by year’s end.  He commented on yesterday’s sell-off, “As long as the infection rate continues to ease, strong momentum should continue into 2022 as businesses start to rebuild depleted inventories and ramp-up CAPEX. Central bank policies should remain growth-oriented, and even China’s slowdown is likely to be countered soon with a policy pivot.”

Our trade alert for today features a company that’s making waves in the chip industry.  Their stock is highly regarded by the analyst community, with more analysts stepping in over the past month.  


Netherlands-based NXP Semiconductors (NXPI) supplies semiconductor and related products to industrial, mobile, and communications infrastructure industries and is an especially heavy player in the automotive industry.  The company is benefiting from strong demand for its chips, particularly from automakers.

Its revenue from automakers soared 87% year-over-year in the second quarter. Overall, NXP’s Q2 sales jumped 42% YOY and 3% versus Q1.  Its free cash flow came in at $486 million.

Going forward, the chipmaker should continue to be supported by the increased use of chips in vehicles and by the proliferation of EVs in Europe and elsewhere.

On June 29, NXPI forged a collaboration with Jio Platforms Ltd., the largest network service provider in India, for the use of  NXPI’s processors for Jio’s 5G platform. Tareq Bustami, Senior Vice President and General Manager at NXPI, commented, “The collaboration with Jio to develop, test and deploy 5G solutions underscores the power of our Layerscape products and the growing ability of NXP’s antenna-to-processor portfolio to accelerate new 5G deployments.”

Then in July, NXPI announced a collaboration with insurance technology company MOTER Technologies, Inc., to analyze deep data and provide insurance for automotive vehicles. The partnership should consolidate NXPI’s market reach in the automotive industry.

Trading at a market capitalization of $54 billion, NXPI stock, which has nearly tripled since the end of 2018, likely has much more room to climb.  The pros on Wall Street mostly agree that the stock is a buy right now.  Of 29 polled analysts, 20 give NXPI a Buy rating, 9 say to Hold the stock, and only 1 says to Sell.  What’s more, the consensus rating for NXPI has climbed 5% in the past month, which means the stock is attracting more members of the analyst community.  A median 12-month price target of $235 represents a nearly 16% increase from its current price.

Where to invest $1,000 right now...

Before you consider buying NXPI, you'll want to see this.

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And it's not NXPI.

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But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...