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Tip Ranks
Analysts say these 3 stocks are their top picks for 2021
The year is winding down and it is time for Wall Street analysts to start signaling their top picks for next year. It is an established tradition, in most walks of life, to take a sometimes ironic look at what lies ahead and start giving advice on how to say so about a metaphorical crystal ball. carefully, observing its past and current performance, its trends over a variety of time frames, management plans – analysts take everything into account. Their recommendations provide valuable insights into building a resilient portfolio in the new year. As usual, TipRanks has collected and compared data on the best choices and made it available for use by investors. The stock choices and their data make some interesting choices. Let’s take a closer look. UTZ Brands (UTZ) UTZ Brands is a family label in the Eastern United States. The company is known for its range of snacks, which are more salty than sweet. The company’s food line, including pretzels, chips, snacks, and popcorn, are frequent choices in vending machines. In August, UTZ (then known as Utz Quality Foods) entered into a business combination agreement with Collier Creek, a special purpose acquisition company. The combination brought the venerable snack company into the public commerce domain. Most recently, UTZ reported strong third quarter results and reported that it has signed an agreement to purchase competing snack company Truco. The quarterly results were released first, on November 5th, showing $ 248 million in net sales, a 24% year-over-year increase, along with a 23% year-over-year increase in gross profit. A week later, UTZ and Truco announced a $ 480 million acquisition deal, which will bring the “ On the Border ” brand of tortilla chips and sauces to the UTZ product line. Covering this stock for Oppenheimer is 5-star analyst Rupesh Parikh, who sees a clear path forward for the company. “[Following] the announcement of the company on 11/12 to acquire Truco Enterprises, [we] overall we look very favorably at the economics of the deal, the opportunities for synergy, the leverage effect on the attractive tortilla category, including ancillary products (salsa and queso), and the attractive growth prospects for the brand “, he said. Parikh said. Organic sales growth of at least 3-4% and EBITDA growth of 6-8% with the possibility of upside from strategic acquisitions “, concluded the analyst. To that end, UTZ remains Parikh’s first small cap food choice. The analyst considers the stock to outperform (eg Buy) along with a price target of $ 24. This figure implies a 28% rise from current levels. (To see Parikh’s track record, click here) Overall, Wall Street loves this stock, earning it a stellar consensus rating from analysts: Strong Buy. of the 7 analysts monitored by TipRanks over the past 3 months, 6 are bullish on UTZ, while only one remains sidelined. With a potential return of ~ 16%, the stock’s consensus target price is $ 21.71. (See UTZ stock analysis on TipRanks) RingCentr al, Inc. (RNG) From savory snacks to telecommunications technology. RingCentral is a cloud-based business communications company. The company’s products are software platform packages that combine telephone and computer systems. The flagship product platform, RingCentral Office, enables communication system compatibility with other popular business apps including DropBox, Google Docs, Outlook, and Salesforce. RNG also offers unique features needed for communication systems: call forwarding, phone extensions, video calls and screen sharing. revenues and share performance. The number of top lines increased through 2020, with third quarter revenues totaling $ 303 million for a sequential gain of 9.3%. Shares have easily recovered from the COVID faint of mid-winter and the stock is trading up 76% this year. On the negative side, RingCentral is operating at a net loss and that net loss has been increasing even as revenues have increased and the stock appreciated. The EPS loss in the third quarter was 24 cents. James Fish, 5-star analyst at Piper Sandler, wrote the review on RNG, and is optimistic about the company’s future. “RingCentral is winning over new customers and expanding with existing ones given its ability to converge across the communications software stack, including the contact center … we continue to recommend RingCentral as one of our ‘4 core’ in our coverage and a name to own for the next few years, “commented Fish. As a result, Fish reiterates RNG as his first choice. The analyst views the stock as overweight (aka buying) along with a price target of $ 362. At current levels, this indicates a possible 21% upside for the next year. (To see Fish’s track record, click here) Overall, RingCentral has 10 recent reviews, including 9 purchases and 1 suspension, making analyst consensus a strong buy. The median price target is $ 337.22, which suggests a 13% rise from the current trading price of $ 297.79. (See RNG stock analysis on TipRanks) DraftKings, Inc. (DKNG) The world of fantasy sports helps bring fans into games and now that pro leagues are back to play – albeit for shorter seasons, in deference to the coronavirus – DraftKings, which bring fantasy leagues online, has made progress. In addition to creating fantasy leagues, DraftKings offers sports betting, and the company’s online model has adapted well to the social distance restrictions put in place to combat the ongoing health crisis. In the third quarter, the results of which were reported earlier this month, DraftKings had a lot of good news. Revenue of $ 133 million beat the forecast of $ 1 million and the net loss per share was not as profound as analysts had feared. The company reported a key metric – monthly unique players – exceeding 1 million, a major milestone. Looking ahead, DraftKings revised its fiscal guidance for 2020 upward, by 5.7% mid-range, from $ 540 million to $ 560 million. The midpoint for revenue expectations for 2021 is even more bullish, at $ 800 million, and as noted, these gains come as major sports leagues are back in play. But this is not the only key here. DraftKings operates in 19 states plus DC, the jurisdictions that allow legal online sports betting. But 8 more states are in various stages to legalize DraftKings’ niche, and the company is looking forward to expanding its operations. Summarizing the prospects for DraftKings, Rosenblatt analyst Bernie McTernan writes: “[DKNG] remains one of the top picks in our Consumer Tech coverage. Q3 results will continue the positive revisions of the revenue estimate given the better than expected guidance for ’20E and’ 21E. We are at the high end of the ’21E range which we believe is achievable given our expectation for at least MI and VA to be online. The analyst added: “The new state launches will put pressure on agios in the short term. EBITDA, but encouragingly, the company indicates that NJ, their more mature market, is in a similar position where they previously hoped it would be for its profitability growth. “McTernan rates DKNG at Buy, and its $ 65 price target implies a robust 41% one-year upside. (To see McTernan’s track record, click here) In total, there are 19 registered reviews for DraftKings. , including 13 buys and 6 takes, which gives the stock a moderate buy rating by analyst consensus. The stock is currently priced at $ 46.24 and has an average price target of $ 59, making the upside potential for 38% next year. (See DKNG 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 the insights Shares of TipRanks. Disclaimer: The views expressed in this article are solely 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 yes investment.
