Prime Wall Avenue analysts are betting on these shares in December
Frank Calderoni, CEO of Anaplan.
Adam Jeffery | CNBC
In the final leg of 2020, stocks rallied all over the world. The Dow Jones Industrial Average recently closed above 30,000 for the first time while the other major US stock indices hovered near record highs.
Encouraging updates on the advancement of a coronavirus vaccine resulted in a rotation of investors into cyclical stocks, which tend to outperform during times of economic recovery.
"While 30,000 isn't much different than 29,999, there is something special about these big milestone numbers … This is another reminder of how far stocks and economies have come since the lows of March," said LPL Financial's chief market strategist, Commenting Ryan Detrick.
However, in the short term it is fraught with uncertainty as the distribution of a vaccine is a significant challenge that requires global coordination. At the same time, coronavirus cases in the US are on the rise, with the highest one-day death reported since early May this week.
With this in mind, one way to get compelling results is by following the activities of analysts with demonstrated stock selection skills. TipRanks' analyst forecast service seeks to identify the top performing analysts on Wall Street. This is determined by the success rate and the average rate of return per review, taking into account the number of reviews given by each analyst.
Here are the five most popular stocks of analysts right now:
Pay back holdings
Payment processing company Repay Holdings has just received the seal of approval from Northland Capital analyst Mike Grondahl. After a call to members of the management team, the five-star analyst repeated a buy rating on Nov. 24, with the analyst forecasting an upside potential of 16% as the price target is at $ 28.
Grondahl admits that the coronavirus is creating significant headwinds across the room, but argues that "RPAY has found ways to handle this". This includes expanding the "TAM from its primary core areas of personal and auto loans to B2B, which matters now, to mortgages and receivables".
"We are pleased with RPAY's ability to continue its expansion into new key industries and generate strong financial results," added the analyst.
Taking a closer look at these industries, the car loan business was also able to expand against the backdrop of the pandemic. There is positive macroeconomic tailwind for this segment, according to Grondahl, as people start moving out of urban areas and buying their first or second car. With the decline in the use of public transportation, there is a strong demand for used car sales.
In mortgage lending, RPAY made its foray into the space with the acquisition of Ventanex in February. Thanks to low interest rates and increased refinancing activities, Grondahl sees several positive tailwinds.
However, personal loans have been "soft" lately as the excess cash in the system from stimulus checks resulted in a decrease in originations in Q2 2020, creeping into Q3 2020 repayment volume. However, Grondahl points out that the company has not lost any customers and management believes this is only a temporary setback.
The 147th ranked analyst's outstanding track record is backed by a success rate of 63% and an average return of 21.7% per rating.
Software company Autodesk's shares rose nearly 5% on November 25 after it released third-quarter results that it had announced several weeks earlier were above the upper end of management's guidance. For Oppenheimer's five-star analyst Koji Ikeda, this performance confirms his bullish thesis. To this end, he repeated a buy recommendation and a price target of USD 300 (11% upside potential).
Total revenue for the quarter was $ 952.4 million, up 13% year over year and exceeding consensus estimate by $ 9.8 million. Pro forma EPS beat the street reputation by $ 0.08.
Going forward, management has projected total revenue of $ 999 to $ 1,014 million for the fourth quarter, with the midpoint beating analysts' forecast of $ 1,003 million.
There have been several positive takeaways for Ikeda. This included signing a nine-digit multi-year renewal contract and entering into eight non-compliant user contracts for $ 500,000 for an operating margin of 30.1%, the highest level since fiscal 2015, and using APAC above pre-year levels Pandemic was.
Although fiscal 2012 revenue and FCF projections were below consensus, and management cut the high-end billing for fiscal 2021 and FCF projections by around $ 40 million each, Ikeda remains on the long-term outlook from ADSK optimistic.
"We believe Autodesk will be well positioned during and after the pandemic to disrupt future digitization opportunities in the construction and manufacturing industries that should enable the company to meet its financial targets for fiscal 2013," said the analyst.
Based on its impressive 93% success rate and an average return of 44.7% per review, Ikeda ranks 48th in TipRanks' ranking.
Needham's Scott Berg assists Anaplan on top picks for 22nd Highest Performing Analyst. In a bullish signal, the top analyst raised the Anaplan price target from USD 70 to USD 85 and repeated a buy rating on November 25th. With this new target, the upside potential is 21%.
For the third quarter, the company reported revenue and a non-GAAP operating margin of $ 114.8 million, or -5.3%, beating Berg's estimates of $ 109.6 million and -13%, respectively. Total revenue increased 28.5% year over year and subscription revenue increased 31.4%, accounting for 91.1% of total revenue.
In addition, management was targeting total initial revenue of $ 550 million for FY22, which is slightly above consensus.
That being said, the cRPO growth rate slowed from 28% to 20% compared to the previous quarter. Based on the "brief history of this metric," Berg believes the decline "may be indicative of slower sales in the third quarter or simply reflect the timing of several large upcoming renewals."
"On the positive side, we believe that both Anaplan and its partners' partner investments remain on track with our pre-COVID expectations, which should lead to improved sales as the pandemic subsides. Note that Anaplan has historically been a pretty heavy personal sale Returning to travel / face-to-face meetings could benefit the company significantly, "explained the analyst.
According to TipRanks, Berg currently has a 72% success rate and an average return of 27.2% per review.
Top health analyst Edward White from H.C. Wainwright is optimistic about Karyopharm Therapeutics, which is focused on developing therapies for patients with cancer and other serious diseases. He reiterated a buy rating and a price target of $ 41 on Nov. 25, indicating an upside of 178%.
The call came in response to KPTI's announcement that the ongoing SIENDO Phase 3 study has passed its preliminary futility analysis, and the Data and Safety Monitoring Board (DSMB) proposed that the study continue as planned without changes.
SIENDO is a phase 3 study to evaluate the efficacy and safety of Xpovio (the Company's oral selective inhibitor to bind and inhibit XPO1, a nuclear export protein) as a frontline maintenance therapy in patients with advanced or recurrent endometrial cancer. The key data from the study is expected to be published in 2H21.
White notes that the FDA has already approved the therapy for the treatment of relapsed or refractory (r / r) multiple myeloma (MM) and r / r diffuse large B-cell lymphoma (DLBCL).
The drug's potential extends beyond these indications, with the analyst highlighting that "positive Phase 3 SEAL data were presented at the Connective Tissue Oncology Society 2020 (CTOS 2020) annual meeting last week. The SEAL Study Evaluating a Single Agent Xpovio met its primary endpoint of a statistically significant increase in median progression-free survival in patients with advanced unresectable dedifferentiated liposarcoma. "
With that in mind, White estimates that Xpovio sales of dedifferentiated liposarcoma could reach $ 3 million in 2022 and could increase to $ 26 million by 2026. Given the potential of the therapy for solid tumors other than dedifferentiated liposarcoma, the analyst expects a launch in 2023 with sales of $ 39.9 million this year and growing to $ 20.5 million in 2026.
With an average return of 34.2% per rating, white ranks 113th on TipRanks' list of top performing analysts.