Let’s not talk about the bush. In a world characterized by uncertainty, there will always be truth; Investors want to know where they can best invest their money. The hard part is looking through the thousands of stocks on offer looking for the golden tickets – the names that can maximize an investment in the long run.
Although there are numerous ways to do this, a proven way is to follow the experts’ example. After all, the professionals and the casual investor have the same goal in mind – strong returns.
With that in mind, we used TipRanks’ stock screener tool to bring up three tickers that connoisseurs see to offer a lot of upside potential in the coming months – over 25%. In addition, all three currently have a strong purchase consensus rating from the street.
Sequans Communications (SQNS)
Micro-Cap Sequans Communications is a developer and supplier of 5G and 4G chips and modules for IoT devices and maintains a partnership with the telecommunications giant Verizon. The network operator has recently launched the Sequans products Monarch Go and Monarch GPS, which enable IoT devices to connect to Verizon’s LTE network much faster than previous modules. Verizon is the first provider to certify the all-in-one modem components.
The company also delivered its fourth quarter results earlier this week and Needham’s Rajvindra Gill is impressed by the pressure. The 5-star analyst notes that the chipmaker has taken important steps to improve its ability to bring its devices to market. In addition, with new contracts with two major distributors, Avnet and RFPD, Gill expects the sales channels to be critical to targeting a massive but fragmented IoT market.
The 5-star analyst said: “SQNS delivered stronger fourth-quarter sales than expected and grew 25% quarter-on-quarter as services revenues increased significantly due to the $ 35 million strategic contract signed in the fourth quarter. The company anticipates sales of $ 8 million from this deal in 2020 and ~ $ 10 million / year in the next 2 years. In addition, SQNS continued to have strong traction at Cat M / NB and benefited from Monarch SiP’s ongoing ramp combined with a win at a large measurement company. We continue to expect SQNS to benefit from the ramp at Cat M / NB, broadband stabilization, and strong long-term growth in vertical markets. “
Gill therefore maintains its buy recommendation. The positive pressure has prompted him to raise his price target from $ 6 to $ 7. The new number implies a potential rousing 27.5%. (To see Gill’s track record, Click here)
What is the rest of the street thinking? It turns out that they fully agree with Gill. With 4 buy ratings and no holds or sells, the message is clear: SQNS is a strong buy. If that’s not enough, the upside potential is 60% with an average price target of $ 8.81. (See Sequans stock analysis on TipRanks)
Callaway Golf Company (ELY)
Callaway Golf Company had a healthy 2019, but saw a slight drop in its share price since the turn of the year. While the share outperformed the overall market in 2019 with a strong plus of 33%, it has so far fallen by 11% in 2020. Wall Street analysts see the stock decline as a buying opportunity.
The sporting goods company uses a very 21st Century approach in the design of his golf equipment. Callaway has used artificial intelligence and machine learning in the new designs of its golf clubs, a strategy that has paid off. In the industry-standard benchmark publication Golf Digest, the company held the top position in every category of clubs until 2020.
While the company’s recent earnings report was mixed, B.Riley FBR’s Susan Anderson remains a staunch fan. The analyst notes that the golf specialist outperformed in all segments and saw strong growth in all regions. Sales growth increased by 72.7% compared to the previous year and thus exceeded the growth rate of 69.1% required by the estimate.
Anderson said, “ELY continues to outperform its core golf equipment segment, which grew + 35.6% in the fourth quarter and + 7.1% in fiscal 19, reflecting innovative new products such as Epic Forged Irons, MDS Jaws Wedges and Stroke Lab Putter is due. We believe that the transformation of ELY’s business through recent acquisitions in the apparel / outdoor sector, synergies between business units and the expansion of new markets will lead to growth in the next few years that will outweigh the entire golf business. “
As a result, Anderson reiterates a buy rating for Callaway stocks and a target price of $ 30. If the goal is achieved, investors will make a 55% profit next year. (To see Anderson’s track record, Click here)
The street is with the B.Riley analyst. 7 purchase ratings merge to form a strong purchase consensus rating. The analysts’ average price target of $ 26 implies an upward trend of 34% for the golf club designer over the next 12 months. (See Callaway Golf stock analysis on TipRanks)
Lyft Inc (LYFT)
Part of the concern for investors in the disruptive carpool category is on the path of new players to profitability. Lyft has focused on an alternative approach for its rival competitor Uber. While Uber has diversified in several directions – Uber eats, Uber cargo, international expansion – Lyft has focused solely on its ridesharing business in the United States.
The company recently released its fourth quarter 19 earnings report. Sales of $ 1.02 billion exceeded the estimated $ 984.1 million. An estimated loss of $ 0.53 per share was recorded, while Lyft recorded a loss of $ 0.41 per share. Active drivers of 22.9 million (plus 23% over the previous year) slightly exceeded the road estimate of 22.8 million. Revenue per active driver was $ 44.40 (up 23% year over year) from the expected $ 43.19 on the road.
However, investors were disappointed with rising costs and expenses for 2019, which more than doubled from $ 3.1 billion to $ 6.3 billion. Unlike Uber, which forecasts profitability by the end of the year, Lyft also expects to make a profit by the end of 2021.
Still, Wedbush analyst Daniel Ives remarked, “Lyft delivered another strong quarter with all the metrics that were above consensus.” The 5-star analyst said, “Despite the stocks that were in print before the conference call, we see this as a continuation of Lyft’s performance, which has been broadly achieved every quarter since it became a public company. This quarter is another step in the right direction. We believe that Lyft and carpooling in general should support continuous equity performance, appreciate the upward trend and expand results multiple times. “
So the bottom line? Ives maintains an outperform rating for Lyft, along with a price target of $ 75. If this number is reached, investors can expect an increase of 67% in the coming year. (To see Ives’ track record, Click here)
The rest of the street agrees. A strong buy consensus rating is divided into 21 purchases and 5 holds. The average price target at $ 68.45 indicates a potential gain of 52%. (See LYFT stock research on TipRanks)