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Tip Ranks
Analysts say these 3 stocks are their top picks for 2021
The year is ending and most of us would say “good start”. Is there any evidence that the markets are returning to an uptrend? The summer saw big gains on Wall Street, possibly a bubble, but definitely a bull market. September saw it slip out of the way, October saw a partial recovery, while November started with a bang or, to be more precise, a boom.Some Wall Street analysts see the remaining time for some smart equity games in a volatile environment , and they’re labeling their top picks to start the new year on a high note. Let’s take a closer look. SVB Financial Group (SIVB) The first stock on the list is Silicon Valley’s largest depository bank. SVB Financial Group is the holding company that owns Silicon Valley Bank, a commercial bank specializing in high-tech venture capital. Since its founding in the 1980s, SVB has provided financing to more than 30,000 start-ups and has also become a major financial services provider for Napa Valley vineyards. Working in high-wealth areas of the San Francisco Bay region and maintaining offices in other financial centers around the world – London, Hong Kong and Toronto, among others – Silicon Valley Bank was well positioned to withstand the crown crisis. . The bank’s revenue increased through 2020, from $ 807 million in the first quarter, to $ 860 million in the second quarter, to $ 1.08 billion in the third quarter. Earnings, after a sequential slip into Q1, were also up; third-quarter EPS was $ 8.47, beating forecasts by 55%. The bank’s shares reflected strong financial performance. SVB has grown 27% year to date after recovering from the mid-winter market crash. Concerning SIVB for Maxim, analyst Michael Diana writes: “SIVB remains our first banking choice thanks to: 1) its unique, non-replicable franchise; and 2) the growth implications of that franchise … The environment for companies backed by VC has improved, in our view, especially for the technology and life sciences companies that are at the heart of SIVB … we expect SIVB’s deposits, loan volumes and investments / warrants to earn they should all benefit from it in 2021 “. Diana values SIVB as a buy and its $ 335 price target implies a further 10% increase for the year ahead. (To see Diana’s track record, click here) Overall, SVB Holdings has an analyst consensus-moderate buy rating, based on 13 recent reviews, including 10 buys, 2 takes and 1 sell. (See SIVB share analysis on TipRanks) Danaher Corporation (DHR) The second stock on the list is a conglomerate, a globally diversified company headquartered in Washington, DC. Danaher works in science and technology, bringing together a number of companies through acquisitions and partnerships. Danaher operates in three business segments, Life Sciences, Diagnostics, and Environmental & Applied Solutions. Danaher performed well through 2020, repeating its normal pattern of earnings growth from the first quarter, but on steroids. The first quarter EPS was low, at $ 1.05, but quickly rose to $ 1.44 in the second quarter and then to $ 1.72 in the third quarter. The third quarter result was 25% higher than expected. Revenues followed a similar path, from $ 4.3 billion in the first quarter to $ 5.9 billion in the third quarter. the current pandemic situation and, consequently, move the title to one of the best choices. “We believe DHR has one of the best product portfolios in the Tools group to address the current COVID-19 (bioprocessing, Dx) challenges. Over the next few quarters, a double-digit pro forma revenue growth rate appears achievable, driven in part by these COVID-19 solutions. Looking beyond the current pandemic, we believe management’s comments on the company’s portfolio evolution, strategy to extract durable revenue from short-term demand driven by COVID-19, and M&A capacity (we estimate ~ $ 15 billion + over the next 12 months) should help build confidence that DHR is now plausibly built to generate sustainable growth in HSD core revenue. This would be an impressive growth profile for an instruments company with a market capitalization of nearly ~ $ 200 billion and is well above current consensus estimates. ”Schenkel said. Schenkel, who has a score of 56 out of over 7,000 analysts in TipRanks database, rates DHR shares as Outperform (i.e. Buy). Its price target of $ 275 indicates a 12% rise over the next 12 months. (To see Schenkel’s track record, click here) Overall , Danaher boasts an analyst consensus rating of Strong Buy, and it’s unanimous – the stock has received 6 purchases in the past few weeks. (See DHR stock analysis on TipRanks) Boston Beer (SAM) Latest action on the list today is one you may be familiar with. Boston Beer is the owner of Sam Adams, the famous beer named after the colonial era patriot. Boston Beer is the fourth largest brewery in the United States, with sales of 1.33 billion of dollars for 2019. 2020 has been a good year for Boston Beer so far. To put it bluntly, social lockdown policies that keep people at home have led many of them to turn to beer for convenience, and Boston Beer has a highly regarded flagship brand. The company’s earnings have steadily increased this year, from $ 1.32 in the first quarter to $ 6.10 in the third quarter. At the top, revenues went from $ 330 million in the first quarter to $ 492 million in the third. Among the stocks on this list, Boston Beer showed the strongest appreciation of stocks since the beginning of the year. The stock nearly tripled, gaining 183% despite all the ups and downs of 2020.Cowen analyst Vivien Azer, who holds 5 stars with TipRanks, reviewed the company’s latest third quarter results and was duly impressed. As a result, Azer reiterated SAM as its first choice. “SAM easily beat our estimate above consensus for Q3 (historically the largest EPS quarter, at 40% in 2019) … the company expects * all * of their brands to grow in 2021 .. Despite the reality of COVID uncertainty, some nuances inform the company’s outlook ahead of expectations: 1) delayed shelves … 2) line of sight in terms of internal and outsourced capacity, and 3) prospects for a doubling of hard seltzer, “wrote Azer. In keeping with its optimistic outlook, Azer rates the stock as a Buy along with a price target of $ 1,250. Its target suggests a 17% rise in the next year. (To see Azer’s track record, click here) Overall, SAM shares get a moderate buy rating by consensus from Wall Street analysts. The title has 9 recent revisions, divided into 6 purchases and 3 taken. (See SAM 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. 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 investments.
