7 Stocks to Buy for Over 20% Upside Potential
If you’re looking for a quick boost to your portfolio, look no further. Here are 7 stellar stock to buy — and I’ll explain why. First, each of these stocks has over 20% upside potential. This is from the current share price to the average analyst price target. (And some of these stocks have far more than 20% upside potential.) Secondly, all these are ‘Strong Buy’ stocks according to Street consensus — or all the stock’s ratings for the last three months. And last but not least, when you see the analyst investor reports on these stocks, it’s clear that these are very promising companies with serious growth to come.
I found these stocks to buy using TipRanks’ . This nifty screener enables you to find stocks to buy with a bullish rating from the Street’s best analysts. Plus you can screen for only stocks with 20% upside potential and above. True, the market may look choppy thanks to trade tensions but there are still gems out there. As Thorne Perkin, president of Papamarkou Wellner Asset Management told CNBC: “When you put it all together, this is a healthy time to come into the market for the long term… We always look at these pullbacks as buying opportunities for the long term.”
So see what you think of the following stocks to buy now:
World Wrestling Entertainment (WWE)
No doubt you have heard of World Wrestling Entertainment (NYSE:). But have you ever thought about WWE as a savvy investment play? Now’s the time to jump into the ring. This is a stock with a ‘Strong Buy’ analyst consensus and an average analyst price target of $108. This indicates 35% upside potential from current levels.
Bear in mind, the company already posted a jaw-dropping 150% gain in 2018. However, the stock dropped 17% in the last month after second-quarter guidance was below expectations, even though this includes another highly profitable event in Saudi Arabia.
Don’t let this deter you. In fact the pullback seems like a perfect buying opportunity. Notably, top-rated analyst of Loop Capital Markets has just upgraded WWE from Hold to Buy. He explains: “WWE is uniquely positioned with live event programming, which has become the most valuable form of video content, in our view.”
“Management is balancing short-term profits driven by the impressive increase in television rights with long-term growth by investing back in the franchise, particularly internationally” says Gould. He believes the current softness in key metrics is temporary due to talent injuries. And looking forward the company is on track for double digit top-line growth and 30% compounded EPS growth. Gould also ramps up his price target from $85 to $100. Want to learn more about World Wrestling stock?
“We have been impressed as TPR has built out a set of core capabilities and an operating playbook that can be leveraged across the platform,” KeyBanc analyst wrote following the company’s recent earnings report. “Despite promotional concerns, TPR continues to make progress in its Kate Spade reboot and reiterated positive comp guidance for 4Q19.”
Yruma is particularly optimistic about new creative director Nicola Glass. Her first Kate Spade collection launched in September 2018 to rave reviews — and stores will soon be replenished with the new products. “Increased penetration of Nicola Glass’s product is a key part of the expected positive 4Q comp as all product in the full-price channel should be new by the end of 4Q (while three-quarters was new in 3Q) and outlet penetration will ramp over coming quarters,” Yruma told investors.
Sarepta Therapeutics (SRPT)
And now the FDA has granted priority review for SRPT’s second treatment. Golodirsen is for DMD patients with a different genetic mutation. That’s alongside over 20 therapies in various stages of development and research focused on RNA, gene therapy and gene editing. In short, you can see why SRPT represents a very intriguing investing opportunity.
Nineteen out of 20 analysts currently rate Sarepta a ‘Buy.’ The best part is that the average analyst price target translates into 69% upside potential from current levels. “With solid sales and regulatory progress for the exon skipping portfolio providing a continued foundation, SRPT remains fully immersed on the path towards establishing themselves as a gene therapy leader” writes RBC Capital’s .
“Though upcoming mid-year competitive data from PFE may keep some on the sidelines temporarily, with the [earnings] call highlighting what we believe could be substantial opportunities for long term revenue growth, we see a buying opportunity” concludes the analyst.
Given the trade war tensions right now, you may not immediately think of Microchip Technology (NASDAQ:) as a stock to buy now. The company is a leading provider of microcontroller and analog semiconductor. Shares are currently down 17% for May — but still up 16% year-to-date.
Interestingly five-star Mizuho Securities analyst has just ramped up his MCHP price target. The new price target of $100, up from $95 previously suggests upside potential of 20%. And the average analyst price target for this ‘Strong Buy’ stock is even higher at $110 (32% upside potential).
Rakesh made his call following Microchip’s earnings results. The company reported EPA modestly above consensus, while guiding down to a flat JunQ, citing a China trade and tariff overhang. However the key point is that MCHP continues to see a 2H pickup with potential for stronger China stimuli. It also noted any trade resolution would be positive as it removes uncertainty even if it implies higher tariffs.
“We believe MCHP is well positioned with improving operating metrics and market share, lower channel inventories, a strong long-term 63% gross margin, and getting closer to integrating Microsemi on its path to $8 in EPS” summed up the analyst.
Anthem Inc (NYSE:) also deserves a closer inspection. It is the largest for-profit managed health care company in the Blue Cross and Blue Shield Association.
With 10 out of 11 analysts bullish on the stock, ANTM boasts an average price target of $341 (29% upside potential). One analyst backing the stock right now is top-ranked Cantor Fitzgerald analyst .
He reiterated his bullish call following solid 1Q19 results which also saw the company raises its 2019 guidance slightly. “We maintain our view that the shares are attractive especially when we consider the company’s redeployment of $3.2 billion in annualized cost savings from IngenioRx to drive long-term growth rates across its different businesses” cheers Halper. Encouragingly the company’s launch of its PBM, IngenioRx, appears to be on track for this quarter.
Plus Citigroup’s Ralph Giacobbe has just upgraded ANTM from Hold to Buy. Despite hesitations around the commercial risk market, he believes the company’s accelerated growth profile is just too hard to overlook at the current valuation.
Valero Energy (VLO)
Anthem isn’t the only stock getting upgraded right now. Valero Energy (NYSE:) is the world’s largest independent petroleum refiner and it’s also enjoying increasingly positive analyst sentiment. “We have upgraded VLO to Overweight from Neutral, as we believe that VLO is now uniquely positioned to outperform the refining sector and the broader XLE” writes top JP Morgan analyst Phil Gresh.
Following the upgrade, VLO now scores only Buy ratings from the Street. This is a great stock to buy as it also has an average analyst price target of $104 (24% upside potential). As Gresh explains, VLO now demonstrates the benefits of corporate structure simplicity, plus a compelling combination of solid FCF generation, a strong balance sheet and disciplined capital allocation (since Joe Gorder took over as CEO in 2015).
What’s more VLO boasts a unique position in Corpus Christi, Texas. According to the analyst the market isn’t appreciating several new crude pipelines in the region. These could direct up to 2mmbpd of light sweet crude in 2H19-2020, well in excess of local refining capacity (~700kbd). This could lead to a material crude price discount for Corpus area refineries, where VLO is best positioned.
“Bottom line, after a period of refining underperformance since the peak IMO 2020 hype, we like VLO as a way to play improving refining fundamentals and its unique call option on a potential widening of TX Gulf Coast differentials” sums up Gresh.
Last but not least on our list of stocks to buy comes Chinese e-commerce giant, Alibaba Group Holding Ltd (NYSE:). Even though shares have surged 24% year-to-date, the Street still anticipates 27% upside potential for BABA. Add to the picture 16 back-to-back buy ratings in just three months.
Despite Chinese tensions and macro concerns, BABA still managed to report stellar earnings results. This includes a 51% year-over-year increase in revenue to ¥93.5B ($13.93 billion). As Top 50 SunTrust analyst writes “We remain bullish on BABA as management once again executed well against a challenging macro economic/political backdrop in F4Q19, beating expectations and gaining share.”
Secular drivers of growth remain in place, says Squali. Namely we are looking at rising consumption in-and-around China of digital and physical goods (especially in lower tier cities), healthy household finances, and retail digitization.
And even low guidance for FY2020 failed to disturb analysts. “Macro uncertainty and the decision to postpone monetization of the recommendation feed have caused management to guide cautiously for FY20 in our view, but a very healthy 33%+ Y/Y revenue guide and a compelling valuation keep us positive” the analyst concludes.
offers exclusive insights for investors by focusing on the moves of experts: Analysts, Insiders, Bloggers, Hedge Fund Managers and more. See what the experts are saying about your stocks now at TipRanks.com. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.