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Tip Ranks
3 “Strong Buy” titles that meet all requirements
It has been said that traffic jam is a feature, not a bug, of the United States Constitution, and perhaps we are about to find out. The election results left some issues to resolve, but some things are becoming clear: Democrat Joe Biden is the winner of the presidential race, but by secret ballot, Republicans appear to have made major gains. We are looking at the prospect of a divided government: a Biden administration with a Republican senate and a Democratic house with a stronger minority. According to JPMorgan strategist Marko Kolanovic, this could be the best possible outcome. “A Senate majority of the GOP should ensure Trump’s pro-business policies remain intact, and if Biden is confirmed we should be able to expect an easing of the trade war, which should stimulate global trade and corporate earnings growth.” , noted Kolanovic. With investor fears dispelled – that Democrats would either cancel Trump-era fiscal policy or focus on aggressive bureaucratic regulation – Kolanovic believes markets are ready for gains. Stocks to buy are always a challenge, even in a bullish environment, but TipRanks offers investors the range of metrics they need to sort the raw market data and unearth those nuggets. These include analyst consensus assessment, upside potential and the Smart Score; each provides a data point for investors, and taken together, when they all line up, they will give a powerful signal. Analyst consensus is just that: an average derived from the full range of analyst ratings. The upside potential comes from the stock’s collected price targets; it is a mathematical average that suggests the possible growth of the stock over a time horizon of one year. And the Smart Score uses known predictors of market success to assign a score that points towards future performance. With that in mind, we used the TipRanks database to locate three stocks that check all three of these boxes. Pacific Ethanol (PEIX) We will start with a diversified company, with production lines of food and animal feed, industrial alcohols and renewable fuels. Pacific Ethanol sells its products on the global market and made significant gains in 2Q20. Despite recent losses on account, shares have risen 795% this year. The gains have come in July as the company expanded production in response to demand for sanitizing alcohols. The sale of alcohol for hand sanitizers was a major boost for Pacific ethanol in the wake of the coronavirus crisis. Taking into account the new production and sales potential, the company revised its earnings estimates for 2020 upwards, from $ 66 million to $ 86 million. Like many small-cap producers, Pacific Ethanol had earnings shortfalls before this year, but COVID-19 has changed that. Earnings turned positive in the second quarter and remained positive in the third quarter. The sudden change brought investors higher on the stock. Ammit Dayal, HC Wainwright’s 5-star analyst, sees many reasons for an optimistic outlook here. Investors should note that management has indicated that while the company has solid pricing visibility, the volumes of specialty spirits delivered to customers may vary on a quarterly basis. Since disinfectants are a key end market for specialty alcohols, the stock has come under some pressure with positive news related to the COVID-19 vaccine. However, we believe that the demand for disinfectant products should remain high as any economic activity increases in the short term. We believe that the improved balance sheet and cash flow allow the company to invest in areas of the business that were previously neglected and, as a result, may have made an insufficient contribution, “Dayal said. In line with these comments , Dayal rates this stock as a buy along with a price target of $ 16. This figure suggests an impressive upside potential of 174% over the next year. (To see Dayal’s track record, click here) All three Recent reviews on PEIX are positive, making the consensus rating a strong unanimous buy. PEIX shares are priced at $ 5.82 and rose rapidly in 2H20, but Street expects to see more growth here; the target of average price is $ 16.50, which implies a 183% growth for Pacific Ethanol. (See PEIX stock analysis on TipRanks) New York Times Company (NYT) Our next stock is a legendary name. endario in the publishing world. The New York Times company owns its eponymous newspaper, along with a number of other media assets and brands related to the Times. The company boasts a market capitalization of $ 6.4 billion and over 30 corporate assets. Its core brands attract 150 million readers each month and over 6.5 million paid subscriptions. In a hectic and chaotic news environment like 2020 was, the NYT has reaped the benefit of people’s need to know. The stock has risen 20% year to date, despite some slippage in recent weeks. Regarding the NYT for JP Morgan, analyst Alexia Quadrani writes, “NYT remains our favorite midcap title and we see that the growth story of digital subtitles continues and will most likely reach 10m long before the 2025 target of. management. ARPU and margin improvements over time will also make the stock look cheaper on earnings, which will nullify the pushback on valuation. Although stocks may remain somewhat more limited in the short-term range until we have greater visibility on trends in 2021, we believe today’s sell-off creates an interesting entry point. ” the price target indicates a potential of 30% in the next 12 months. (To see Quadrani’s track record, click here) Strong Buy analyst consensus rating on NYT is unanimous and based on 4 recent reviews. The shares have an average price target of $ 53, suggesting a 37% rise over a year from the current trading price of $ 38.53. (See NYT stock analysis on TipRanks) Thor Industries (THO) Last but not least is Thor Industries, a major recreational vehicle manufacturer. RVs are a popular form of recreation and have seen modest gains during the “crown period” as they are compatible with social distancing needs while still allowing families to spend their holidays together. Thor owns seven brands, including well-known names like Airstream and Heartland. The company has a market capitalization of $ 4.8 billion and over $ 8 billion in annual revenues. Quarterly revenue, which was reported for the third quarter earlier this month, recovered from a brief decline earlier this year. The third quarter top line stood at $ 2.32 billion, the highest in the past four quarters. Earnings, down from the third quarter of last year, showed a massive sequential peak, rising from 43 cents per share to $ 2.14. Leisure stocks have seen a resurgence recently and BMO Capital analyst Gerrick Johnson took a look at the industry. Of Thor Industries, Johnson writes: “Shares in leisure companies usually move higher or lower on retail sales results than in revenue or EPS. We believe investor attention will shift after this quarter. Retail has met investor expectations … We think … Thor (THO) will have the longest legs in terms of consumer demand … “Turning to the sales numbers, Johnson adds:” Last quarter, management seemed very optimistic about FY2021 and expects the current robustness of the retail and replenishment cycle to last at least until the end of its fiscal year. To this end, Johnson views THO as outperforming (ie buying) and its $ 110 price target implies a 26% rise from current levels. (To see Johnson’s track record, click here) Again, we’re looking at a stock with a Strong Buy analyst consensus unanimous rating; Thor has 4 recent buying reviews. The stock also has an average price target of $ 115, which suggests a bullish 32% rise for the next 12 months. (See THO Stock Analysis on TipRanks) To find good ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buys, a newly launched tool that combines all of TipRanks’ equity insights. those of the analysts present. The content is to be used for informational purposes only. It is very important to do your own analysis before making any investments.
