Wall Avenue prime analysts say they’re shopping for these shares amid the market turmoil
Ben Silbermann, co-founder and CEO of Pinterest
Tomohiro Ohsumi | Bloomberg | Getty Images
The US presidential election is only days away and Wall Street is preparing for market turmoil. However, given the ongoing uncertainty, it is unclear whether market volatility could continue after the elections.
“Time will tell whether expected volatility will turn into realized market volatility,” said Charley Ripley, senior investment strategist at Allianz Investment Management.
In such an unpredictable economic environment, one approach to producing compelling results is to follow the recommendations of analysts who have a proven track record of success. TipRanks’ analyst forecast service uses detailed market data to find the analysts with the highest success rate and average return per rating, measured on an annual basis. These metrics take into account the number of reviews published by each analyst.
Here are the five most popular stocks of analysts with the best performance at the moment:
modern micro devices
Chipmaker Advanced Micro Devices just released strong third quarter results and announced that it will acquire Xilinx for $ 35 billion worth of shares. For Rosenblatt Securities analyst Hans Mosesmann, these developments confirm his confidence in AMD’s long-term growth narrative.
Given the new EPYC3 product cycles from Ryzen 5000 and Milan, Mosesmann assumes that the momentum observed in the third quarter will most likely continue in 2021. Additionally, he believes the acquisition of Xilinx was the right step as the data center space is in flux and dumping dynamics become even more important.
“With Intel Corporation INTC continuing its troubles, we see no reason why AMD should not capture 50% of the total x86 CPU market with technology / product roadmaps, speeding up design pipelines, and increasing GPU connection rates in the years to come can to optimize EPYC server CPUs etc. “, commented Mosesmann.
In addition, strong roadmaps for x86 CPUs and GPUs give AMD an advantage over Intel and Nvidia, according to Mosesmann. With the deal pushing AMD’s total addressable market to $ 110 billion, the analyst believes the semiconductor company could double in size in the next few years.
All of this prompted Mosesmann to maintain his Buy recommendation and target price of $ 120 (54% upside potential) on October 28th.
Mosesmann lands among the top 100 in the ranking of the best analysts by TipRanks and currently has a success rate of 21.4%.
After an impressive Q3 update, O’Reilly Automotive received a thumbs up from Zachary Fadem of Wells Fargo. The five-star analyst repeated its buy recommendation on October 28th. Along with the bullish call, the analyst had a target price of $ 525 on the stock. Should this target be achieved in the coming year, stocks should gain 19%.
ORLY announced that Comps hit 16.9% plus, EBIT margin rose over 249 basis points, and EPS beat consensus estimate by 9.8% plus. Additionally, DIY exceeded expectations, DIFM exceeded expectations, and the fourth quarter so far has been good. In the first three weeks of October a positive LDD level was recorded.
“In our view, tonight’s results provide further evidence that industry trends remain robust despite mileage declines and the recent downturn (in August),” commented Fadem.
Although the gross margin, at -96 basis points, reflects “the only flaw of otherwise exceptional pressure”, Fadem argues that “ORLY is taking oversized stakes and anticipating another round of EPS revisions upward”.
The analyst then stated, “All in all, we continue to view auto parts dealers as underrated in today’s environment and are constructive about ORLY’s world-class execution, non-discretionary range, and NT upside potential due to stock gains and incremental incentives with ORLY stocks now below 19 times our CY21-EPS estimate (compared to an LT high / low of 27x / 15 times), we see an increasingly favorable risk / return and would be aggressive buyers in the event of weakness. “
With a success rate of 76% and an average return of 25.5% per rating, Fadem is one of the top 60 analysts rated by TipRanks.
Orbcomm from the Industrial Internet of Things (IoT) recently received unanimous praise from the analyst community. Among the cops is one of the top performing analysts, Michael Latimore of Northland Capital.
On October 29, the five-star analyst repeated a buy rating. Additionally, he continues to assign a stock price forecast of $ 6, which puts the upside potential at 50%.
Latimore argues that ORBC improves business efficiency. To prove this, 25 web portals were consolidated into two, the number of SKUs reduced by 75%, COGS reduced by 30%, inventory management improved and billing simplified.
Additionally, ORBC recently announced a new service, OGx, which is part of a collaboration with Inmarsat. “The new service will be 40 times faster than the current IDP and will require less power at the terminal. Current customers will receive a wireless update. ORBC extended its contract with Inmarsat until 2035 and the new service will be available in 2022,” said Latimore.
In addition, the analyst sees the new dual-mode satellite add-ons and the video offering as “interesting incremental growth opportunities”. He added, “ORBC should launch its video service in a quarter or two. This could increase ARPU from $ 6 to $ 30 for connections. Video is primarily a greenfield opportunity, and ORBC is particularly focused on Video for cargo. Dual mode could represent 25% of sales, down from less than 5% today. “
To that end, ORBC expects fourth quarter revenue to be between $ 60 million and $ 64 million, compared to the consensus estimate of $ 63.3 million. “We believe the company expects to close about 30% of the pipeline, refrigeration customers will continue to operate at current rates, and upgrade of dry trucks to 4G (like Hub) will be improved,” commented Latimore.
Latimore ranks 175th on TipRanks’ top-rated analysts list and has an average return of 18.7% per rating.
For the five-star analyst Colin Rusch von Oppenheimer, Enphase Energy is one of his top picks in the energy sector. On October 28th, it reiterated both its buy recommendation and its price target of $ 116, indicating an upside of 12%.
In the third quarter, ENPH saw an uptrend on both the top and bottom as the company continues to see strong demand. The growth of the US market exceeded expectations and made significant strides in Europe.
Stable prices and the benefits of energy storage also contributed to the strong performance. Charging accounted for around 10% of sales in the third quarter, and management says the 50MWh capacity is mostly booked for the fourth quarter. Rusch added, “Management noted that the long-tail installers were encouraging reception and Tier 1 was taking action prior to the IQ8 rollout to support flexible independent network formation.”
“Given the online visibility of the battery supply and the strong demand for its Ensemble products, we believe the company can continue to exceed margin expectations through 2021,” commented the analyst.
In addition, at the beginning of the beta test, Rusch sees “potential for a growth driver that is above our current estimates” for its commercial 640 W roof solution. With increased OpEx spending supporting multi-year expansion, he believes there is “an opportunity for incremental leverage as commercial product ramps and energy storage pick up”.
In summary, Rusch stated: “We have noticed that the market has appreciated several times over the past few months and that confidence in a recovery has increased in connection with the inflationary effects of low interest rates.”
TipRanks shows that analyst number 58 has a 57% success rate and an average return of 33.2% per rating.
Wall Street’s 22nd Top Performing Analyst, Justin Post of Bank of America Securities, trusts Pinterest to share images and save. The analyst raised the target price from USD 58 to USD 72 on October 29. He kept a buy rating.
For the third quarter, the company had revenue of $ 443 million, up 58% year over year and significantly exceeding the Street’s $ 384 million claim. According to management, there has been strong growth in users and usage, a shift in spending from the advertiser boycott, a recovery in demand from advertisers (SMB, international and large CPG) and new initiatives such as conversion optimization, ad products, automated bidding and video Uploads lagging behind the outstanding achievement.
PINS shares rose 28% after the close of trading, meaning the impact of the coronavirus was more than a one-off event, according to Post. “We believe Street is making great strides on purchasing initiatives and has more confidence in ARPU’s long-term expansion,” he said.
Additionally, the total MAU increased 37% year over year to 441 million, with users under the age of 25 also continuing to grow faster than the total.
“Third quarter exposure (such as impressions, close-ups, and saves) and search volume have declined slightly from their highs in the second quarter, but remained well above the PreCOVID-19 level. We believe the increase from below 25 users and the increase in search usage suggest that Pinterest is becoming increasingly relevant to the shopping page, “said Post.
All of this led Post to conclude that PINS is on track to deliver 61% revenue growth in the fourth quarter compared to its original forecast of 46%. Regarding the rating, Post stated, “Given the faster user growth, expansion of use cases (shopping), and strong product pipeline, we feel a premium multiple for peers is warranted (Snap trades 14x 2022 P / S).”
Post’s track record is evident in its success rate of 75% and an average return of 28.4% per review.