Amazon.com delivery truck in Richmond, Calif., The United States on Tuesday, October 13, 2020.
David Paul Morris | Bloomberg | Getty Images
Given the current financial environment, what strategy can investors use to identify compelling opportunities?
Despite inflation concerns, there are still stocks that could outperform. One way to find them is to follow recommendations from analysts who get them right time and time again. The TipRanks Analyst Forecasting Service seeks to identify the best performing analysts on Wall Street or the analysts with the highest success rate and average return per rating. This takes into account the number of ratings published by each analyst.
Additionally, the stocks discussed below did not receive hold or sell ratings. Only buys from top analysts. Hence, these names currently have a unanimously bullish analyst outlook.
Here are the five most popular stocks of analysts right now:
Alphatec is a medical technology company focused on changing the way we approach spine surgery.
After the release of the results for the fourth quarter of 20, the HC Wainwright analyst Sean Lee maintained a buy rating for the stock. In another bullish signal, the analyst raised the target price from $ 16 to $ 19. Lee has a 75% success rate and an average return of 69.2% per rating.
In total, Alphatec received 6 buy ratings from top analysts with an average share price forecast of USD 19.67.
For the quarter, the company had total revenue of $ 44 million, beating the consensus estimate of $ 43.7 million. “We see fourth quarter 20 sales up 36% year over year compared to fourth quarter 20, which we think is particularly impressive given the industry headwinds from the ongoing COVID-19 pandemic in the first half of the year last year. ” Lee noticed.
Looking ahead, management anticipated total sales of around $ 178 million. However, this does not include the possible sales contribution from the acquisition of EOS Imaging, which is expected to be completed in the second quarter of 21.
Lee explained the potential impact of this deal and stated: “In the long term, we believe that the successful integration of EOS Imaging could result in significant synergies for the company and enable Alphatec to offer novel, highly differentiated products for the spine market. We believe that EOS will also become a key growth driver for Alphatec over the next few years and could generate additional revenues of $ 127 million by 2025. “
In addition, Alphatec introduced the system for positioning susceptible transpsoas or PTP patients for lateral surgery in the last quarter. With PTP, a surgeon can perform the entire procedure without turning the patient over. This possibly leads to shorter operations, more reproducible results and the simultaneous implementation of accompanying posterior interventions.
In Lee’s opinion, this offering “could become one of the company’s key lines and change the standard of care in lateral surgery.” He added, “According to management, PTP has been well received by first-time adopters since its inception and the company is strongly promoting the product through clinical staff. We believe PTP could be a major growth driver for the company in 2021.”
RBC Capital’s Frank Morgan, who has received three consecutive buy reviews from top analysts in the past few weeks, is one of those who sing the praises of Addus Homecare. The five-star analyst just repeated a buy recommendation and a price target of USD 136.
The company recently unveiled its value-based navigation agreement with the Presbyterian Health Plan. This agreement is intended to support closer coordination of the care of patients when they are discharged from acute hospitals to their homes or to post-acute facilities.
This deal “positions ADUS for a greater role in post-acute coordination with the potential for longer term joint savings and second, for the better than expected increase in FMAP from COVID relief laws, showing that the federal government continues to support personal hygiene and related services The remaining headwinds from the pandemic, “Morgan said.
Additionally, the analyst is “encouraged” by the recently passed COVID Relief Act as “it increases the percentage of federal medical aid by 10% to bolster personal care services amid the pandemic.”
This increase gives a greater match than Morgan originally expected, with earlier versions of the bill mentioning a 7.35% increase.
“While the FMAP increase shows strong federal support for continued funding for home care services, we note that the ultimate allocation of funds is a state-to-state decision. Fortunately, management has strong commitment under the Medicaid programs stated that it will serve continued funding for personal care providers and patients, “explained Morgan.
Morgan ranked first on the TipRanks list, achieving a 71% success rate and an average return of 22.1% per review.
HC Wainwright analyst Amit Dayal explains his optimistic case for AMRS in a report titled “Multiple Catalysts to Support Increased Growth Rates”. The analyst gave the price target a significant boost, with the number hovering from $ 11 to $ 35, and repeated a buy rating.
Dayal is not alone in his opinion, as the stock has been endorsed by three other top analysts in the past two months. Additionally, the average price target for analysts is $ 25.50.
Dayal’s optimism is driven by major changes in the way Amyris’ business operates. This includes “running against the monetization of portions of its ingredient portfolio,” with the amount of monetization now increasing to $ 500 million from the originally expected $ 450 million. The outlook also supports annual sales growth expectations of between 30% and 50% over the next few years.
Additionally, the debt will land below $ 100 million by the end of Q3 21. That would be a decrease of $ 297 million at the beginning of 2020. Dayal also highlights the company’s potential shift towards consistently positive Adjusted EBITDA generation in the future, supported by gross margins at mid-60% levels.
“We believe the company’s growth trajectory should continue over the next few years, supported by: (1) 18 ingredients currently in development that could enable the company to have more than 30 commercialized ingredients by the end of 2025.” ; (2) four new brand launches in 2021: (3) focus on the use of exclusive formulations and ingredients to participate in niche segments (e.g. acne treatment products), (4) expansion of physical retail space for consumer goods and (5) contribution from acquisitions – and distribution agreements in international markets such as China and Brazil, “said Dayal.
Based on all of these points, the analyst expects sales to grow from 2021 to 2030 at a nine-year annual growth rate of 28.8% from the previous estimate of 20.4%.
Dayal is a top 10 analyst and has an impressive average return of 77% per rating.
The e-commerce giant Amazon has been classified as a “Fresh Pick” by Baird analyst Colin Sebastian. For this reason, the top analyst repeated a buy rating and a price target of USD 4,000. Wall Street fully agrees, and 30 other top analysts also rate the stock with a buy.
“With the market focused right now on value rotation, interest rates, reopenings and hard e-commerce rewards, we believe investors may be missing one of the most compelling subscription / quasi-subscription models in the internet and technology sector,” said Sebastian.
In particular, the analyst argues that one of the subscription service’s main strengths is “keeping customers with compelling services while adding new ones at low cost”. Additionally, Sebastian sees at least 75% of Amazon’s revenue as recurring revenue streams.
In terms of online stores, Sebastian estimates that Amazon is rapidly approaching 200 million paid Prime subscribers, which means 400 to 600 million people shop on Amazon regularly and control 80% of the company’s e-commerce volume, with that being the consumer -Ecosystem is supported by services.
Sebastian believes that third-party services should benefit from higher retention and usage rates. It also makes the case that AWS revenue is recurring. “In particular, the company’s market leadership in Infrastructure-as-a-Service tends to result in significant reuse, while the growing portfolio of software services (e.g. Aurora) provides additional revenue streams for quasi-subscriptions,” commented the analyst.
With all of this in mind, Sebastian views stocks as “significantly undervalued, with a medium-term path to $ 5,000 / share based on solid fundamental trends in e-commerce, market services and the cloud.”
With a success rate of 75% and an average return of 34.8% per rating, Sebastian ranks 28th among over 7,000 analysts recorded by TipRanks.
According to Wedbush analyst Daniel Ives, Microsoft’s cloud momentum is “the next growth spurt in Redmond”. To this end, he kept his Buy recommendation and target price of 300 USD unchanged.
As for the rest of Wall Street, sentiment is 100% bullish, with the stock boasting 23 buy ratings in total.
Ives estimates that global cloud spending will reach nearly $ 1 trillion over the next decade. “Next-generation platforms / infrastructures facilitate this IT transformation as the AWS / MSFT battle for that golden cloud cake.”
Based on the most recent field tests for the March quarter, Ives argues, “The tide is changing in the cloud arms race as Microsoft takes market share over AWS after its latest Azure growth figure of 50% (that’s 28% year-over-year growth) last quarter). “This led Ives to conclude that Azure’s cloud dynamics are still at an early stage in the large installed base. The Office 365 transition for consumers and businesses is “growth tailwind for the next few years”.
“With this front and the top IT priority center, we believe 85% to 90% of these cloud deployments have already received the go-ahead from CIOs and healthy cloud budgets that are in place for 2021. Redmond is firm positioned to gain more market share compared to AWS, however, in this cloud arms race, this will be key for the next 12 to 18 months as the road and industry compares to the success of AWS and its cloud ambitions Microsoft will concentrate, whereby the tech titan Bezos is no longer at the front center, “said Ives.
Against this background, since the cloud change is only just beginning to take shape worldwide, Ives tells investors: “The Redmond cloud benefits disproportionately from this, as Nadella & Co. are so well positioned in their core company backyard to continue to provide Azure. ” / Office 365 as a cloud backbone and artery. “
Ives is among the top 100 analysts with a success rate of 69% and an average return of 33.3% per rating.