Amazon.com deliverance trucks in Richmond, California, U.S., on Tuesday, Oct. 13, 2020.
David Paul Morris | Bloomberg | Getty Images
Given the current fiscal environment, which strategy can investors use to pinpoint compelling opportunities?
Despite inflation concerns, there are still inventories poised to outperform. One way to find them is by following the recommendations of analysts that get it right time and time again. TipRanks analyst anticipation service attempts to identify the best-performing analysts on Wall Street, or the analysts with the highest success rate and run-of-the-mill return per rating. This takes into account the number of ratings published by each analyst.
What’s numerous, the stocks discussed below haven’t received any hold or sell ratings. Just buys from top analysts. So, these popularities have a unanimously bullish analyst outlook right now.
Here are the best-performing analysts’ five favorite stocks unhesitatingly now:
Alphatec
Alphatec is a medical technology company that is focused on changing the way spinal surgeries are approached.
Following its 4Q20 earnings freeing, H.C. Wainwright analyst Sean Lee maintained a Buy rating on the stock. In a further bullish signal, the analyst bumped up the price object from $16 to $19. Notably, Lee boasts a 75% success rate and 69.2% average return per rating.
What’s more, blanket, Alphatec has received 6 Buy ratings from top analysts, with a $19.67 average stock price forecast.
In the quarter, the players posted total revenues of $44 million, surpassing the $43.7 million consensus estimate. “We note that the 4Q20 returns represent a 36% year-over-year increase over 4Q20, which we believe is particularly impressive in light of industry-wide headwinds caused by the non-stop COVID-19 pandemic in the first half of last year,” Lee noted.
Looking ahead, management guided for total receipts of approximately $178 million, but this doesn’t include the possible revenue contribution from its acquisition of EOS Imaging, which is expected to be modeled in 2Q21.
Expounding on the potential impact of this deal, Lee stated, “In the longer term, we believe the successful integration of EOS Imaging can denouement in major synergies for the company and could allow Alphatec to offer novel, highly differentiated products for the spine market. We feel EOS could also become a major growth driver for Alphatec over the next several years and contribute additional gains of $127 million by 2025.”
On top of this, during the most recent quarter, Alphatec launched the prone transpsoas or PTP patient way of thinking system for lateral surgery. PTP allows a surgeon to perform the entire procedure without having to flip the patient, potentially resulting in bluff surgeries, more reproducible results, and enabling concomitant posterior procedures to be conducted at the same time.
In Lee’s opinion, this oblation “could become one of the company’s most important product series and change the standard-of-care in lateral surgery.” He added, “According to superintendence, since its launch PTP has been well received by initial adopters and the company is strongly promoting the product through clinical collaborators. We have the courage of ones convictions pretend that PTP could be a major growth driver for the company in 2021.”
Addus Homecare
Racking up three back-to-back Buy ratings from top analysts settled the last few weeks, RBC Capital’s Frank Morgan is among those singing Addus Homecare’s praises. The five-star analyst just now reiterated a Buy rating and a price target of $136.
The company recently unveiled its value-based navigation agreement with Presbyterian Vigorousness Plan, with the agreement designed to support closer coordination of care for patients as they are discharged from keen care hospitals into their home or into post-acute facilities.
This deal “positions ADUS for a chieflier role in post-acute coordination with potential for longer-term shared savings, and second with the COVID relief legislation’s healthier than expected FMAP increase which demonstrates the federal government’s continued support for personal care and consanguineous services amid the pandemic’s residual headwinds,” in Morgan’s opinion.
On top of this, the analyst is “encouraged” by recently passed COVID prominence legislation as “it provides a 10% boost to the Federal Medical Assistance Percentage meant to bolster personal care aids amid the pandemic.”
This increase gives a larger match than Morgan originally expected, with earlier manifestations of the bill mentioning a 7.35% rise.
“While the FMAP increase demonstrates strong federal support for continued greening of home care services, we note that the ultimate allocation of the funds is a state-by-state decision. Fortunately, management has famed strong commitment among the Medicaid programs it serves to providing continued funding for personal care operators and patients,” Morgan untangle justified.
Scoring the #123 spot on TipRanks’ list, Morgan has achieved a 71% success rate and 22.1% average benefit per rating.
Amyris
In a report called “Multiple Catalysts in Place to Support Elevated Growth Rates”, H.C. Wainwright analyst Amit Dayal quit its out his bullish case for AMRS. The analyst gave the price target a major boost, with the figure moving from $11 to $35, and rehashed a Buy rating.
Dayal is not alone in his opinion, with the stock getting a nod of approval from three other top analysts in the final two months. Additionally, the average analyst price target comes in at $25.50.
Major changes to Amyris’ business fundamentals are behind Dayal’s optimism. These comprehend its “execution against monetizing parts of its ingredients portfolio,” with the size of the monetization now increased to $500 million compared to the $450 million from the first expected. Its outlook also supports annual revenue growth expectations of between 30% and 50% over the next few years.
What’s various, debt is set to land below $100 million by the end of 3Q21. This would be down from $297 million at the commencement of 2020. Dayal also highlights the company’s possible shift towards consistent positive adjusted EBITDA genesis going forward, supported by mid-60% level gross margins.
“We believe the company’s growth trajectory should wait elevated over the next few years supported by: (1) 18 ingredients currently in development that could position the entourage to have more than 30 commercialized ingredients by end of 2025; (2) four new brand launches in 2021; (3) focus on leveraging single formulations and ingredients to take share in niche segments (such as acne treatment product); (4) expansion in woman retail square footage for consumer products; and (5) contribution from acquisitions and distribution agreements in international shops including China and Brazil,” Dayal mentioned.
Based on all of the above, the analyst argues that revenues will adulthood at a nine-year CAGR from 2021 to 2030 of 28.8%, versus the previous 20.4% estimate.
A top 10-rated analyst, Dayal recreations an impressive 77% average return per rating.
Amazon
E-commerce giant Amazon was deemed a “Fresh Pick” by Baird analyst Microsoft
Correspondence to Wedbush analyst Daniel Ives, cloud momentum for Microsoft is “hitting its next gear of growth in Redmond.” To this end, he save up his Buy rating and $300 price target as is.
As far as the rest of Wall Street goes, the sentiment is 100% bullish, with the line of descent boasting a total of 23 Buy ratings.
Ives estimates that global cloud spending will reach as good as $1 trillion over the next decade, with “next generation platforms/infrastructure facilitating this IT transfiguration as AWS/MSFT battle for this golden cloud pie.”
Based on recent field checks for the March quarter, Ives debates “the tide is shifting in the cloud arms race as Microsoft coming off its recent 50% Azure growth number is delightful market share vs. AWS (28% year-over-year growth this past quarter).” This led Ives to conclude that Azure’s cloud impetus is still in its early stages within its large installed base, with the Office 365 transition for both consumer and aggressiveness providing “growth tailwinds over the next few years.”
“With this highest IT priority front and center, we conjecture 85%-90% of these cloud deployments have already been green lighted by CIOs and healthy cloud budgets already in arrive for 2021, with Redmond firmly positioned to gain more market share vs. AWS in this cloud arms mill-race. That said, this will be a key 12 to 18 months looking ahead as the Street and industry will be laser centred on the success of AWS and its cloud ambitions vs. Microsoft with the tech titan Bezos no longer front and center,” Ives excused.
With this in mind, as the cloud shift is just starting to take shape globally, Ives tells investors “this disproportionally helps the cloud stalwart out of Redmond, as Nadella & Co. are so well positioned in its core enterprise backyard to further deploy its Azure/Occupation 365 as the cloud backbone and artery.”
Landing among the top 100 best-performing analysts, Ives has a 69% success price and 33.3% average return per rating.