5 Stocks to Watch: Week of 2/3/2025

Happy Groundhog Day … Again. Today’s list might not make spring come any easier, but it is brimming with fresh promise:

• Despite a tough week for chipmakers, Marvell Technology Inc (NASDAQ: MRVL) shines as a stock with strong growth potential.
• Corning Inc (NYSE: GLW) demonstrates momentum — but also boasts a solid balance sheet.
• Dolby Laboratories (NYSE: DLB) gets the seal of approval from our proprietary AI rating.
• US Foods Holding Corp (NYSE: USFD) gets a price target hike.
• LSI Industries (NASDAQ: LYTS) shines (literally).

Here’s the story on this week’s top watches:

1- Dolby Laboratories (NYSE: DLB) 

No doubt you recognize the famous Dolby brand which has been enhancing sound for all forms of movie and TV entertainment over the years. The healthy foundation of that software business is just one of the many reasons to like DLB right now. 

Zen Rating:  A (Strong Buy) — see full analysis >  

Recent Price: $87.32 — get current quote > 

Max 1-year forecast: $100.00 

Why we’re watching:

• While only 2 analysts we track currently rate DLB, they’re both bullish: DLB has one Buy and one Strong Buy rating. See the ratings 
• Our resident stock-picking expert, Steve Reitmeister of Zen Investor, is also bullish on DLB — he recently named it his Stock of the Week. In a recent article, he explained why: 
• Management has ignited a turnaround after a few years of soft results. Part of this turnaround is expanding into new markets that use their audio software including voice conferencing and automobiles. Plus much of that recent growth has come from expansion into the video game market where the top releases often make more money than a top box office movie.
• The benefit of these new directions has led to some serious earnings acceleration which was quite evident in the 20.3% earnings beat from August 2024. This event sparked a nice round of outperformance for shares that continues into early 2025. 
• These investments in growth are fairly easy to do as the company has a large stockpile of almost $900 million in cash ($9.11 per share). And wouldn't be surprised if management has more growth ideas in store in the years ahead. 
• The Zen Ratings, with its full 115 factor analysis of every company, has most certainly tuned into the quality fundamentals of DLB. Not only is the stock an A overall, but actually in the top 3% of all stocks analyzed.
• There really is no weakness in DLB’s make up as you scan the 7 component grades, the lowest showing is still being in the top 29% for Momentum. No shame in that game. Where it really shines is the scores for Value, Safety and especially AI (learn how to use AI for smarter investing here) where it is in the top 3.6% of the 4,600 stocks reviewed by the quant model. (See all 7 Zen Component Grades here >)

2- Marvell Technology Inc (NASDAQ: MRVL)

While not as high profile as certain GPU makers who you probably see in the news every day, this semiconductor company’s stock is trading at prices 78.59% higher than this time last year. Marvell Technology designs high-performance components that form the backbone of cutting-edge technologies like cloud computing, 5G networks, AI advancements, and autonomous vehicles.

Zen Rating: B (Buy) — see full analysis >  

Recent Price: $115.09  — get current quote > 

Max 1-year forecast: $150.00 

Why we’re watching:

• A whopping 23 analysts are watching MRVL stock, 17 of which rate it a Strong Buy. Another 4 rate the stock a Buy — and only two analysts deem it a Hold. See the ratings
• Notably, top 2% rated KeyBanc analyst John Vinh expects to see stronger earnings and guidance from the company’s next quarterly report — having upped his price target to $135 from $125 and maintained a Strong Buy rating.
• KeyBanc's channel checks point to positive developments, such as the Trainium Ultra win, which will help bridge revenues until the launch of Maia V2 in late 2026, the analyst detailed. Vinh added that competitors like Mellanox, which was absorbed by Nvidia, are facing problems with their 1.6T DSP.
• With a Zen Rating of B, MRVL belongs to a class of stocks that have historically provided a 19.88% annual return on average.
• Marvell stock has been on a strong upward trajectory for two years — earning a Momentum rating of B. 
• MRVL also ranks highly in terms of growth — in the 91st percentile, to be exact. Finally, the stock has an Artificial Intelligence Component Grade rating of B, indicating that subtle patterns in market data point to outperformance in the future. (See all 7 Zen Component Grades here >)

3- Corning Inc (NYSE: GLW)

Remember when it was really easy to break the glass on your smartphone? A little thing called Gorilla Glass did away with all of that around 2007 — and we have Corning Inc to thank. With a whopping 174 years under its belt, this innovative company has been on the cutting edge of materials science for decades — and it isn’t resting on its laurels either.

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price:  $51.49  — get current quote > 

Max 1-year forecast:  $60.00

Why we’re watching:

• A consensus Strong Buy, GLW stock is tracked by 10 equity analysts — 5 rate it a Strong Buy, 2 rate it a Buy, and 3 rate it a Hold. See the ratings
• Notably, Corning hasn’t earned a single Sell or Strong Sell rating from Wall Street researchers.
• The most recent of those Strong Buy ratings came on January 21 — when Citigroup’s Asiya Merchant (a top 12% rated analyst) raised their price target on the stock to $58 from $55.
• Merchant explained that they hiked their price target and named Corning a 2025 top pick because "the company remains well positioned for secular and cyclical demand recovery across its various segments, coupled with margin expansion potential to drive strong earnings growth and shareholder returns."
• The analyst further explained that Citigroup's bullishness on the stock is supported by "improving underlying dynamics in Corning's core optical, display and specialty segments, which represent 70% of revenue, and confidence in the company's ability to realize the revenue and profit potential outlined in its Springboard plan," the analyst explained.
• GLW is in the 96th percentile of all the stocks we track — with a Zen Rating of A (Strong Buy).
• Looking at the Component Grades, it’s not hard to see why GLW is a top pick. Its Growth and Momentum ratings are respectively in the top 9% and top 8% of all the stocks we track. All the same, GLW is not just for growth-obsessed investors. Its Safety Component Grade rating of B points to a stable, predictable revenue inflow. (See all 7 Zen Component Grades here >)

4- US Foods Holding Corp (NYSE: USFD) 

This Rosemont, Illinois-based business has been in business for a long time — since 1989. US Foods Holding distributes food — whether fresh, frozen, or dry, to food service companies all across the United States. It is the top-rated stock we track in the entire food distribution industry. However, this 36-year-old company is young at heart — and confident that it can improve productivity and margins in 2025.

Zen Rating:  A (Strong Buy) — see full analysis >  

Recent Price: $72.16  — get current quote > 

Max 1-year forecast: $82.00 

Why we’re watching:

• USFD stock has earned Wall Street’s confidence — of the 9 analysts issuing ratings for US Foods, 8 rate it a Strong Buy, with just 1 Hold rating. See the ratings 
• On January 21, Brian Harbour of Morgan Stanley (a top 20% rated analyst) reiterated a prior Strong Buy rating, increasing his price target to $82 from $76 in a 2025 sector preview note.
• Morgan Stanley believes there is "reason to be cautiously optimistic" on the prospects for the Restaurant sector in 2025 and is modeling modestly better U.S. industry growth this year (almost 5% compared to 2024's just over 4%), they cut their price target because they "don't see underlying fundamental themes shifting quickly after a sluggish 2024."
• A similar sentiment was echoed by Truist Securities analyst Jake Bartlett (rated top 3%), who likewise maintained a Strong Buy rating with a $78 price target. Bartlett reported that their price target hike was driven by Truist Securities' discussions at the 2025 ICR Conference.
• Regarding US Foods Holdings specifically, Bartlett highlighted that the company considers itself "in the early stages of productivity and margin expansion initiatives, such as negotiating with vendors, promoting private label sales, more effective routing, and improving operations."
• USFD stock enjoys a Zen Rating of A (Strong Buy). Stocks of this caliber historically provide an average annual return of 32.52%
• US Foods has great marks all around — only one of the company’s Component Grades, Growth, is rated a C — in contrast, it has five Component Grades (Value, Momentum, Sentiment, Financials, and Artificial Intelligence) rated B.
• However, the stock’s Safety rating of A is a particular strength — in this category, the company is in the 95th percentile. (See all 7 Zen Component Grades here >)

5- LSI Industries (NASDAQ: LYTS)

Let there be light! Just about every type of business needs lighting, and LSI has the goods. The company specializes in non-residential lighting solutions of all shapes and sizes, from trade show displays to parking lots and more. With a recent earnings beat and a recent acquisition could lead to further growth, analysts and our proprietary ratings system agree: LYTS is one to watch. 

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price: $21.27  — get current quote > 

Max 1-year forecast: $30.00 

Why we’re watching:

• Analyst support: While only 2 analysts we currently track are issuing ratings on LYTS, they’re both bullish — one Buy and one Strong Buy rating. See the ratings
• Just a few days ago, George Gianarikas of Canaccord Genuity maintained a Strong Buy rating and raised their 1-year price target on LYTS by 18.2% from $22 to $26 following the company’s Q2 2025 earnings.
• Hiking their price target in response, Gianarikas pointed out that, in the quarter, LSI Industries continued to build its business inorganically through the recently announced acquisition of EMI Industries.
• Looking ahead, the analyst told readers that Canaccord Genuity expects the company to continue to reward long-term shareholders "through long-term organic growth, prudent capital allocation, and a conscientious approach to M&A."
• Our proprietary Zen Ratings system agrees: LYTS is a Strong Buy. It has the highest rating of A, putting it in a class of stocks that have historically delivered 32.52% returns. 
• Its “report card” of Component Grades that make up the overall Zen Rating is solid, too. Despite average “C” grades for Sentiment and its AI rating, it sparkles everywhere else: an A grade for Momentum and solid B’s for Value, Growth, Safety, and Financials. (See all 7 Zen Component Grades here >)

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