Analysts are Betting on These 5 Stocks to Thrive Right Now
Wall Street gurus are betting on these 6 companies for long-term gains, according to CNBC.
There is unprecedented uncertainty in the stock market and in the world right now. Surging coronavirus cases, hopeful vaccine progress, rising tensions with China, and unrest from social issues have all collided to produce a unique time for equities. It would be wise to listen to the analysts that have a strong track record of generous returns in similar situations. The analysts choosing the stocks below have the highest success rate and average return on a one-year basis according to TipRanks analyst forecasting service.
On July 16, Canaccord Genuity analyst Michael Walkley reiterated his Apple buy rating and raised his price target to $444 from $310, 14 percent upside. Walkley believes the transition to 5G services is a strong catalyst for Apple in 2021. Furthermore, the business is shifting towards high-margin services.
“Ahead of the Covid-19 shock to global economies, we were encouraged by the strong demand for the iPhone 11 lineup and believe Apple will maintain its market share leadership of premium-tier smartphones that should expand with its iPhone 12 lineup supporting 5G along with other strong features,” he said. Walker boasts a 17.1 percent average return per recommendation.
- Akebia Therapeutics
HC Wainwright analyst Ed Arce is long on Akebia even though shares have almost doubled year-to-date. On July 15, he reiterated his buy rating, citing a new study evaluating Vadadustat for coronavirus-related acute respiratory distress syndrome.
Arce believes that Vadadustat could be the key to preventing lung damage in patients that experience acute respiratory distress syndrome. His valuation for Akebia is based primarily on Vadadustat's potential. He has a $17 price forecast for the stock, signaling 38 percent upside. Acre boasts a 17.7 average return per rating.
Oppenheimer's Michael Wiederhorn reiterated his buy rating on UnitedHealth and raised his price target to $353 from $343. UnitedHealth had strong second-quarter earnings as medical costs declined amid the coronavirus crisis.
“Since management is factoring in elevated medical costs in its 2H:20 outlook and 2021 pricing, we believe there should be upside to numbers should costs remain depressed due to the environment,” Wiederhorn said on July 15, “we would continue to be long-term buyers.” Furthermore, he believes UnitedHealth is well positioned due to its diversification, strong track record, elite management team, and exposure to growth businesses. Wiederhorn boasts a 16.3 percent average return per rating.
Goldman Sachs analyst Brett Feldman just initiated a buy rating and a $137 stock price forecast for Disney. He believes that Disney+ has emerged as a global streaming leader and that the market is undervaluing Disney's direct-to-consumer segment by more than 50 percent.
He believes Disney+ will eventually reach Netflix's level and that the market is only valuing it at a 50 percent discount right now. “We believe such a material discount is unwarranted and expect this valuation gap to close as Disney+ ramps its customer base and achieves profitability,” Feldman said. Furthermore, he believes that Disney's Parks and Studios will fully recover once the pandemic subsides. Feldman boasts a 17.1 average return per rating.
- Service Now
RBC Capital analyst Alex Zukin believes Service Now is a prime stock to buy now, On July 14, he raised his price forecast to $500 from $372. “Our discussions with partners lead us to believe the 2Q report will be strong as NOW potentially becomes both a near and longer-term Remote Work beneficiary” the analyst said.
“Our research suggests ServiceNow has leveraged its strong IT incumbency, flexible product portfolio, and best-in-class sales leadership to capitalize on shifting immediate customer priorities and level-up its position as a strategic vendor to its customers” he said.
“Cloud momentum building for the ZS Freight Train into 2021” said Wedbush analyst Daniel Ives on July 16. He reiterated his buy rating and raised his stock price forecast to $150 from $100. “Across the board we are seeing an uptick in deal flow for ZS, as the company’s unique product suite in the sweets spot as more enterprises/governments shift workloads to the cloud,” Ives said.
He believes Zscaler is a leader in cloud cybersecurity and that the pandemic will only expedite its emergence as a strong stock. “In our opinion, ZS is the best pure play in the cloud security arena, which we believe is still in the very early innings of taking off,” he said.