IPO Watch: Is It Time To Buy These Intriguing Stocks?

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Another chip conglomerate was added to the U.S. stock exchanges on Thursday with Arm Holdings‘ (ARM - Free Report)  IPO highlighting what has been a rather quiet market for IPOs over the last few years.

Still, Arm Holdings stock popped over 20% as investors showed excitement for the U.K.-based chipmaker. This was well received as Instacart’s valuation is said to be plunging with the food delivery company yet to complete its anticipated IPO.

As for Arm Holdings, its valuation came in at around $60 billion and its stock settled +24% higher than its IPO price of $51 a share.

Now may be an ideal time to look at the prospects for other companies that had notable IPOs over the last year as analyst and research firms brace to add financial estimates for Arm Holdings.

Mobileye Global (MBLY - Free Report)

Launching its IPO last October, Mobileye Global’s stock popped +38% in its debut. The developer of autonomous driving technologies and a subsidiary of Intel (INTC Quick QuoteINTC - Free Report)  secured a $17 billion valuation hitting the market at $21 a share.

Based in Israel, Mobileye was founded in 1998 and was bought by Intel in 2017 for $15.3 billion. Spunoff in Intel's need to make lucrative capital investments after losing market share in the semiconductor space, Mobileye thinks the autonomous vehicle market could be valued at $480 billion by 2030. 

With the autonomous vehicle market currently valued at around $20 billion, Mobileye is expecting double-digit percentage growth on its top line. Sales are forecasted to jump 13% in fiscal 2023 and climb another 27% in FY24 to $2.67 billion.

Zacks Investment Research

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More importantly, Mobileye is already profitable although FY23 earnings are expected to dip -11% to $0.70 a share. However, FY24 earnings are forecasted to rebound and leap 18% to $0.83 per share. It's noteworthy that the Average Zacks Price Target of $47.83 suggests 32% upside for Mobileye's stock.

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Kodiak Gas Services (KGS - Free Report)

More recently having its public offering in June, Kodiak Gas Service’s stock is worth watching as well. Kodiak was valued at $1.2 billion and priced its IPO at around $16 a share.

Hovering just above its IPO price at the moment, Kodiak is an operator of contract compression infrastructure in the U.S. The company’s focus is on operating horsepower compression units enabling the production, gathering, and transportation of natural gas and oil.

Founded in 2011, Kodiak is already profitable as well with fiscal 2023 earnings expected at $0.48 a share. More impressive FY24 EPS is expected to soar 180% to $1.35 per share. Total sales are projected to be up 14% this year and rise another 8% in FY24 to $873.28 million.

Zacks Investment Research

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Even better, the Average Zacks Price Target of $24.25 represents 34% upside for Kodiak stock with KGS shares still trading at what could end up being an attractive entry point.

Zacks Investment Research

Image Source: Zacks Investment Research

Bottom Line

As of now, Mobileye Global and Kodiak Gas Services stock land a Zacks Rank #3 (Hold). There has still been a cautionary tale surrounding the IPO market as investors have been skeptical of newly traded companies amid economic headwinds over the last year. With that being said, Arm Holdings' recent IPO was promising and the outlook for Mobileye and Kodiak is intriguing.

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