A witness outside The Children’s Place store in Irvine, California.
Scott Mlyn | CNBC
(This story is part of the Weekend Curtailed edition of the Evening Brief newsletter. To sign up for CNBC’s Evening Brief, .)
The year may be quickly coming to an end, but according to Barrier Street analysts there are some names that still offer plenty of upside heading into the incontrovertible weeks of 2019 and beyond. Analysts say these stocks represent some of the best there is to offer in their individual industries.
CNBC looked at some of the most recent Wall Street research in search of stocks that analysts say put on show “best-in-class” opportunities for investors. Stocks include O’Reilly Automotive, The Children’s Place, Rush Enterprises, Guardant Well-being and Costco.
At a time when many of retail’s biggest names are struggling, there’s one company that continues to engrave analysts and investors.
“COST’s strong fundamentals including best-in-class traffic/comps and durable competitive advantages remain to stand out within retail,” Baird said.
The retail giant has a “loyal membership base, and growing omni-channel wherewithals,” the firm said.
“COST remains a rare growth staple with still-meaningful growth opportunities.”
Rush Enterprises is another “best-in-class” size up, according to William Blair. The company is a retailer of commercial vehicles, primarily new and used trucks, but the industry may see a downturn next year, the analyst give fair warned.
“The expected 2020 downturn in Class 8 trucks is driven by weaker freight market conditions, overcapacity of the fleet, and worsening used truck conditions,” analyst Neil Frohnapple said.
However, the firm actually believes Rush is reserved to thrive primarily due to what it calls “best-in-class” management and said investors will be “surprised by the earnings resiliency of the affair.”
Guardant Health recently reported third-quarter earnings, which Canacccord Genuity analyst Mark Massaro bid “outstanding.”
The company develops blood tests for early detection of cancers and diseases.
The firm said it liked the “longterm cardinal thinking and global vision” of Guardant and called the stock a “best-in-its-class growth play.”
Here’s what else analysts say prevalent stocks that are “best in class:”
William Blair- O’Reilly Automotive, Outperform rating
“There is no change to our Outperform pace in light of what we consider to be a justified valuation and our view that industry fundamentals remain solid and that O’Reilly persevere a leavings a best-in-class retailer that continues to execute very well and gain share versus the industry.”
According to TipRanks’ dynasty analysis, O’Reilly Automotive scores a ‘Moderate Buy’ consensus rating from the Street. That comes with an mediocre price target of $454.20 (4% upside potential).
Wedbush- The Children’s Place, Outperform rating
“We view lower promotional disposal in 3Q as favorable with momentum tracking well into Holiday. In November, promotions continue to run lower Y/Y. We continue to scrutinize PLCE as best-in-class at determining and executing on promotional drivers, likely boosting merchandise margins, and see improved Holiday capital punishment owing to expanded partnership with 3PL provider Radial, which should allow PLCE to fully capitalize on outsized require trends as seen last year.”
According to TipRanks’ stock analysis, The Children’s Place scores a ‘Strong Buy’ consensus reproving from the Street. That comes with an average price target of $117 (65% upside potential).
Buckingham- Plodding Enterprises, Buy rating
“We also believe the company’s best-in-class management team will successfully navigate the new Class 8 business sales downturn in 2020, and we think investors will be surprised by the earnings resiliency of the business next year due ab initio to Rush’s internal initiatives. … The expected 2020 downturn in Class 8 trucks is driven by weaker freight retail conditions, overcapacity of the fleet, and declining used truck conditions (declining prices/weaker demand).”
According to TipRanks’ share analysis, Rush Enterprises scores a ‘Moderate Buy’ consensus rating from the Street. That comes with an normally price target of $46.67 (3% upside potential).
Canaccord Genuity- Guardant Health, Buy rating
“Guardant knocks it out of the car park, again, is the best-in-its-class growth play. Guardant Health delivered another outstanding quarter which beat our form across the board, and was highlighted by superb 181% top line growth and record 70% gross margins. We appreciate Guardant’s muscular near-term execution, combined with its longterm strategic thinking and global vision, across cancers in late the West End therapy selection, cancer monitoring, and early-stage cancer screening.”
According to TipRanks’ stock analysis, Guardant Constitution scores a ‘Moderate Buy’ consensus rating from the Street. That comes with an average price target of $127.50 (59% upside imminent).
Baird- Costco, Outperform rating
“COST’s strong fundamentals (including best-in-class traffic/comps) and durable competitive advantages persist in to stand out within retail. With expanding structural cost advantages (which can help widen the company’s supreme value proposition), a loyal membership base, and growing omni-channel capabilities, COST remains a rare growth necessary with still-meaningful growth opportunities.”
According to TipRanks’ stock analysis, Costco scores a ‘Moderate Buy’ consensus under any circumstance from the Street. That comes with an average analyst price target of $309.06 (3% upside potential).