How to find attractive stocks with superior performance during the volatile second half of the year? Here are some of the names that top-performing Wall Street analysts are betting on right now.
As fears of a coronavirus resurgence sweep the world, it could make sense to follow the choices of analysts with a proven track record of success. Here, we use the TipRanks analyst prediction service to identify the top-performing analysts on Wall Street. These are the analysts with the highest success rate and average return measured in a year – and considering the number of ratings made by each analyst.
With that in mind, here are the five favorite stocks of the top performers:
GW Pharma’s medical marijuana stock has just received approval from JP Morgan’s five-star analyst Cory Kasimov. He reiterated his GWPH purchase rating with a price target of $ 187 on June 23. Despite a 20% increase in the accumulated result for the year, Kasimov’s price target translates into a considerable potential of 50%.
After hosting GWPH during the company’s series of biotechnology conference calls in 2020, Kasimov praised the favorable configuration of the action, writing: “Our conversation with management highlighted several bullish levers in the short and medium and long terms”.
For example, GWPH’s flagship product, the cannabinoid Epidiolex, had a very successful launch. However, it is still only less than 50% penetrated into Dravet and Lennox-Gastaut Syndrome, leaving ample opportunity for growth. That’s how GWPH is gearing up for a potentially very profitable expansion of the Epidiolex label in Tuberous Sclerosis (TSC), with a US regulatory decision set for July 31.
“The opportunities for expanding labels in the short term and the potential for off-label use in the broader population of patients with epilepsy in general can contribute significantly to the upper line,” writes Kasimov.
He also recommends keeping a close eye on the company’s second drug, Sativex, a “potentially underestimated factor in revenue” due to stiffness related to multiple sclerosis. In terms of analyst performance, Kasimov ranks 123rd out of more than 6,700 analysts covered by TipRanks.
“Addressing a recurring revenue stream,” exclaimed John Pitzer of Credit Suisse after Nvidia’s new partnership agreement with Mercedes-Benz. The two companies intend to launch a fleet of autonomous vehicles (AV) by 2024 using a vertically integrated solution with silicon / NVDA hardware and, mainly, software, based on the Nvidia Drive AV software stack.
According to Pitzer, the contract provides a “traditional” silicon / hardware revenue stream and a recurring revenue stream based on “non-traditional” software (50/50 division with Mercedes) that “during the life of the vehicle could generate MORE Rev than the initial silicon / hardware sale. “
In addition, NVDA continued to expand its platform strategy to other verticals, including medical genomics, robotics, telecommunications and conversational AI, implying the potential for even more recurring revenue streams over time. With that in mind, the analyst reiterated his purchase rating on Nvidia on June 23 with a stock price forecast of $ 425 (upward potential of 12%).
Net-net, “We continue to see NVDA as the best stock of secular growth at Semis, with an almost addressable TAM market (total addressable market) protected by the advantage of the first operators and a wide / deep gap in silicon and software,” he said. the analyst.
Pitzer is ranked # 44 by TipRanks among more than 6,700 analysts, with an impressive average return of 21% per rating.
On June 24, Opojiheimer’s Koji Ikeda started covering the DocuSign electronic signature stock with a $ 200 stock purchase rating and predicted stock price. Although the stock has exploded over 125% year-to-date, this Top 100 analyst still believes that 19% additional potential is yet to come.
As a result, he sees DOCU as a “major investment stake”, with an attractive value proposition. Organizations that adopt DocuSign will never go back to old workflows, says Ikeda, creating a long opportunity for future monetization of the installed base through expansion and additional sales.
In addition, returning to work will require efficient and accurate office re-entry documentation processes, exactly what DocuSign does. “We anticipate that this may lead to the adoption, use and valuation of estimates, which can be neglected on the street,” writes the analyst.
With such a significant demonstration since March, Ikeda recognizes that investors may face unrest in the short term, but, in the end, “DocuSign is a proven success story, managed by a visionary management team, and is participating successfully the big, but sub-penetrating ~ $ 50 billion digital contract management opportunity. “
Ikeda has an excellent 91% success rate, according to TipRanks, with 84 out of 91 profitable ratings over a one-year period.
Daniel Perlin, from RBC Capital, has just reiterated its giant purchase and payment Mastercard, with a rising stock price forecast of $ 370. With shares stable for the year, their high price target suggests that the potential for a 24% increase is in investor cards.
“Mastercard remains one of our best ideas in the space, considering our opinion that investors should seek to focus on long-term stories, of a secular nature, that provide solid organic growth with opportunities for margin expansion”, explained the analyst on June 24th.
He notes that MA has now released three additional weeks of operational metrics for the second quarter of 20, through the week of June 21. Recent trends are generally encouraging, says Perlin, with steady improvements in the first three weeks of June. In fact, switched volumes fell (1%) y / y, compared to the May 28 update, where volumes fell (8%) y / y.
And while international borders remain depressed, he believes that this latest update may allow investors to update their baseline scenarios and gain confidence to set a floor on international revenues.
Perlin is ranked # 129 by TipRanks out of more than 6,700 analysts, providing an average return of 17% per rating and 71% success rate in one year.