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3 “Strong Buy” Stocks That Could Reach New Highs
The markets have been on a tear of late despite the headwinds presented by the novel coronavirus pandemic. The question is how long this will last?Writing from Goldman Sachs, the firm’s chief US equity strategist David Kostin says that the markets will outperform both other investments and analyst expectations over the next two years. He sees the S&P 500 hitting 4,600 by the end of 2022, which would represent a 25% gain.Backing his stance, Kostin gives four reasons for his bullishness. The first three reasons are the obvious ones: the economy is improving, earnings are rising, and interest rates are low – these all draw investors into stocks. But under them all is ‘Tina’ (there is no alternative). The stock market is the only place right now where investors can find big returns and, according to Kostin, “equities become the default opportunity.”With investors moving into stocks, they’re going to look for data to back their choices. After all, even without an alternative, investors want to find the right moves.With this in mind, we used TipRanks database to pinpoint three stocks with a Strong Buy consensus rating, and a Perfect 10 Smart Score. The Smart Score is a data analysis tool, which uses the real-time information collected in the database. The stock data is collated according to 8 separate factors, each of which is known to predict growth and share appreciation. The factors are averaged together, and given as a single-digit score, on a scale from 1 to 10, letting investors know at a glance the likely way forward for a stock.The Strong Buy rating and the Perfect 10 don’t have to go together, but it’s a strong positive sign for investors when they do. Let’s take a closer look. Turning Point Brands (TPB)Turning Point may not be a household name – but there’s a good chance that you’ve heard of some of its brands. The company owns both Zig Zag, the well-known maker of rolling papers and branded gear, and Stoker’s chewing tobacco. Turning Point has a range of ‘consumer products with active ingredients,’ including chewing tobacco, as well as snuff and vapes. The company registered an earnings increase from 4Q19 to 1Q20, bucking the corona trend, and has seen quarterly revenues level out at $104 million in Q3, up 15% from the first quarter. Earnings have been rising consistently for the past three quarters, with Q3 EPS at 75 cents.The company’s stock has been rising, too. Shares in TPB are up an impressive 50% year-to-date, wiping out all losses sustained during the shutdown policies last winter.Covering this stock for Craig-Hallum is 5-star analyst Eric Des Lauriers. He rates TPB shares a Buy, and his $60 price target suggests room for 41% growth in the coming year. (To watch Des Lauriers’ track record, click here)Backing his bullish stance, the analyst…
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