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Top Stock Picks for Week of July 22, 2024

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Micron Technology (MU - Free Report) has established itself as one of the leading worldwide providers of semiconductor memory solutions. Micron is benefiting from improved market conditions, robust sales executions and strong growth across multiple business units. The positive impact of inventory improvement in the data center, as well as stabilization in other markets, such as automotive, industrial and others, is contributing to top-line growth. It anticipates the pricing of DRAM and NAND chips to increase next year, thereby improving its revenues. The pricing benefits should primarily be driven by rising AI servers, causing a scarcity in the availability of cutting-edge DRAM and NAND supply. Also, 5G adoption in the Internet of Things devices and wireless infrastructure is likely to spur demand for memory and storage. The stock has outperformed the S&P 500 year to date. Micron is a cash rich company with a strong balance sheet. Micron has a strong cash-flow generating ability, which enables it to improve its cash balance and lower debt. Micron is readying to report earnings on September 25, 2024.   

SM Energy Company, (SM - Free Report) previously known as St. Mary Land & Exploration Company, is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. With an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions, SM Energy is set to expand its oil-centered operations in the coming years. The company has roughly 155,000 net acres in South Texas and operates two drilling rigs and one completion crew. Notably, operating wells in the Austin Chalk allow it to diversify its portfolio and mitigate risks related to regional demand and supply. SM Energy expects its total 2024 production to exceed the prior-year figure by 3-4%. As an upstream company, it is poised to benefit from the ongoing favorable crude price environment. Higher production and better prices are expected to improve SM Energy’s financial performance and aid free cash flow generation. As such, the stock appears well-positioned to deliver enhanced shareholders’ value in the near future. SM Energyis a stock many investors are watching right now. SM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.  


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