EBay Inc. signage is displayed at the entrance to the company’s headquarters in San Jose, California.
David Paul Morris | Bloomberg | Getty Images
Preparing the market for withdrawal? A correction of stocks may be on the horizon, say strategists from Bank of America, but this is not necessarily a bad thing.
“We expect a buyable 5-10% Q1 correction as the big ‘unknowns’ coincide with exuberant positioning, record supply and ‘as good as it gets’ earnings revisions,” commented the team of Bank of America strategists.
Meanwhile, Jefferies’ Desh Peramunetilleke reiterates this sentiment, writing in a recent research note that while stocks are not due for a “long-term settlement”, investors should take advantage of any weakness if the market experiences a retreat.
With this in mind, how should investors find compelling investment opportunities? By paying close attention to the activity of the analysts who consistently get it right. TipRank’s analyst forecasting service is trying to identify best-performing analysts on Wall Street, or the professionals with the highest success rate and average return per. rating.
Here are the best stock analysts’ best stock choices right now:
Shares of the network solution provider Cisco Systems has experienced some weakness since the company announced its financial results in Q2 2021. That said, Oppenheimer’s analyst Ittai Kidron’s bullish thesis remains very intact. To this end, the five-star analyst repeated a Buy target and $ 50 price target.
Kidron calls Wall Street’s expectations “subdued” and tells investors that the printout contained more positives than negatives. First and foremost, the security segment increased by 9.9% compared to the previous year, when the cloud security business increased double-digit growth. In addition, quarterly-over-quarter order trends improved “in all regions and customer segments, indicating gradually declining COVID-19 headwinds.”
That said, Cisco revenue guidance for fiscal 3rd quarter 2021 missed the target thanks to supply chain problems, “lumpy” cloud revenues and negative business orders. Despite these obstacles, Kidron remains optimistic about the long-term growth narrative.
“While the angle of recovery is difficult to determine, we remain positive and see headwinds as temporary and considering Cisco‘s software / subscription traction, strong BS, robust capital allocation program, cost-saving initiatives and compelling valuation, “commented Kidron
The analyst added: “We will take advantage of any withdrawals to add positions.”
With a success rate of 78% and an average return of 44.7% per. Rating, Kidron is ranked No. 17 on TipRanks’ list of best-performing analysts.
Highlight Lift as the best player in his coverage universe, Wells Fargo analyst Brian Fitzgerald argues that “the setup for additional gains is constructive.” In line with his optimistic stance, the analyst bumped his price target from $ 56 to $ 70 and repeated a Buy rating.
Following the turnaround company Q4 2020 earnings call, Fitzgerald believes the narrative is centered around the idea that the stock is “easy to own.” Looking specifically at the management team, who are shareholders themselves, they are “analyst opinion” owner-friendly and focus attentively on shareholder value creation, free cash flow / share and cost discipline.
In particular, profitability could come in the third quarter of 2021, a quarter earlier than previously expected. “Management reiterated EBITDA profitability at Q4, which also suggests Q3 as an option if volumes measure through (and leverage) ’20 cost-cutting initiatives,” Fitzgerald noted.
The analyst added: “For these reasons, we expect LIFT to appeal to both fundamental and momentum-driven investors who make the Q4 2020 results call a catalyst for the stock. “
That said, Fitzgerald has some concerns going forward. Citing Lyft’s “touch on B2B delivery”, he sees it as a potential “distraction” and as “poorly timed in terms of declining demand when the economy reopens.” What’s more, the analyst sees the $ 10 to $ 20 million investment in acquiring drivers to meet the growing demand as a “small negative”.
The positives, however, outweigh the negatives of Fitzgerald. “The stock has momentum and looks good for a financial recovery after COVID in CY21. In our opinion, LYFT is relatively cheap with an EV of ~ 5x FY21 Consensus revenue and seems to be faster at accelerating earnings among On-Demand stocks , because it is the only pure game TaaS company, ”he explained.
As Fitzgerald boasts a success rate of 83% and an average return of 46.5% per. Rating, the analyst is 6th the best-performing analyst on the street.
For top Roth Capital analyst Darren Aftahi, Carparts.com is a top choice in 2021. As such, he held a buy rating on the stock in addition to raising the price target from $ 18 to $ 25.
Recently, the car parts and accessories retailer revealed that its Grand Prairie, Texas distribution center (DC), which came online in the 4th quarter, has shipped more than 100,000 packages. This has increased from approx. 10,000 in early November.
According to Aftahi, the facilities are expanding the company’s capacity by about 30%, seeing an increase in hiring to meet demand, “which could be good for FY21 results.” What’s more, management stated that DC will be used for traditional gas-powered car parts as well as hybrid and electric vehicle supplies. This is important as this space “could present itself as a new growth category.”
“We believe that comments about the early demand in the latest DC… could indicate that DC’s course was ahead of schedule and had a more meaningful impact on P&L earlier than expected. We believe that getting full sales going is still the next steps in getting DC are fully operational, but in general, the ramp up in hiring and fulfillment gives us optimism about the potential upward impact on our forecasts, ”commented Aftahi.
In addition, Aftahi believes that the next wave of government stimulus controls may reflect a “positive shock in demand in FY21 amid tougher compensations.”
Taking into account all this, the fact that Carparts.com trading at a significant discount to its peers, makes the analyst even more positive.
Achieving a huge 69.9% average return per. Rating, Aftahi is ranked No. 32 out of over 7,000 analysts tracked by TipRanks.
Asking clients to “look over here,” Stifel analyst Scott Devitt agreed eBay and thumbs up. In response to the Q4 earnings results and Q1 guidance, the five-star analyst not only repeated a Buy rating, but also raised the price target from $ 70 to $ 80.
Looking at the details in the printout, FX-adjusted gross goods volume increased by 18% over the year during the quarter, reaching DKK 26.6 billion. Dollars and beat Devitt’s 25 billion. Dollars. The total turnover came to 2.87 billion. $, Which reflects a growth of 28% and best the analyst’s estimate of 2.72 billion. This strong manufacturing came as a result of the integration of payments and promoted lists. In addition, the e-commerce giant added 2 million buyers in the 4th quarter, with the total now landing at 185 million.
Going forward in the first quarter, management managed a volume growth of as low as 20% and a growth in revenue of 35% -37% against the 19% consensus estimate. What’s more, non-GAAP EPS are expected to be between $ 1.03 – $ 1.08, easily surpassing Devitt’s previous $ 0.80 forecast.
All this made Devitt say: “In our opinion, the market for improvements in the core market business is underestimated with a focus on improvements of buyer / seller experience and development of new verticals, as investors remain cautious about approaching difficult competencies starting in 2. Although a slowdown is expected, equities are traded aftermarket with only 8.2x 2022E EV / EBITDA (adjusted for sales of warrants and classified ads) and 13.0x 2022E Non-GAAP EPS under marketplaces and traditional omni-channel retail. “
What else works in eBayis favor? Devitt highlights the fact that the company has a history of shareholder-friendly capital allocation.
Devitt earns more than his # 42 spot thanks to his 74% success rate and 38.1% average return per share. Assessment.
Fidelity National Information serves the financial sector and offers technology solutions, processing services as well as information-based services. As RBC Capital’s Daniel Perlin sees a possible recovery in pressure for 2H21, he sticks to his buy rating and $ 168 price target.
After the company released its fourth-quarter figures, Perlin told customers that the results, along with its forward-looking guidance, focused on the “short-term pressure from the pandemic, specifically given FIS‘lower return on merchant ship mix in current environment.’ That said, he argues that this trend is ready to reverse as challenging comps are released and the economy reopens.
It should be noted that the company’s trade mix “may create confusion and variability, which remained evident on the way into the press,” in Perlin’s view.
Explaining this, the analyst said, “Specifically, key verticals with strong growth during the pandemic (representing ~ 65% of the total FY20 volume) tend to come with lower revenue yields, while verticals with significant COVID headwinds (35% of volumes) generate higher It is for this reason that H2 / 21 needs to set up a rebound, as many of the discretionary categories return to growth (aided by lighter comp.) and non-discretionary categories may remain elevated. “
In addition, management noted that its backlog grew 8% organically, generating $ 3.5 billion. In new sales in 2020. “We believe that a combination of Banking’s revenue conversion conversion, pipeline strength and ability to drive product innovation, paves the way for Banking to accelerate reef growth in 2021,” Perlin said.
Among the top 50 analysts on TipRanks’ list, Perlin has achieved a success rate of 80% and an average return of 31.9% per share. Rating.
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