A sign is posted in front of the NVIDIA headquarters on May 10, 2018 in Santa Clara, California.
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With COVID-19 cases surging again around the world as well as growing concerns about the economic reopening, navigating the current financial landscape can be challenging.
In this case, the key is to look for stocks that not only appear undervalued but are also poised for gains going forward.
The names mentioned below fit the bill and have the backing of analysts with impressive stock picking abilities. TipRanks’ analyst forecasting service identifies the best-performing Wall Street analysts, or the analysts with the highest success rate and average return per rating. These metrics factor in the number of ratings each analyst has published.
Here are the best-performing analysts’ top stock picks right now:
The Lovesac Company
Following “decidedly upbeat” 4Q results, Oppenheimer analyst Brian Nagel’s bullish thesis on The Lovesac Company remains very much intact. As such, he reiterated a Buy rating on the furniture maker. In a further display of optimism, the analyst bumped up the price target from $60 to $85 (18% upside potential).
Looking at the print, the company posted adjusted EBITDA of $25.9 million, easily beating the $12.6 million consensus estimate. On top of this, gross margin expanded by 900 basis points to 57.9%, versus 49% in the prior-year quarter.
“For a while we have highlighted Lovesac as a compelling and still largely over-looked, digitally-driven small cap growth opportunity, within home furnishings and consumer, broadly. Shares have rallied and recently crossed through our prior objective,” Nagel commented.
Management didn’t offer any formal guidance for FY21 due to continued uncertainty, but estimates were provided for unaided brand awareness for the company and its products. At only 2%, Nagel tells investors that there’s “still significant near and longer-term sales and market share opportunities for Lovesac, particularly as leadership improves further marketing reach and effectiveness.”
Expounding on the opportunity ahead, Nagel stated, “In our view, a restart of key investments in coming quarters, combined with now improved operational controls and still healthy sector tailwinds position LOVE well for continued outsized top and bottom-line expansion in 2022 and beyond.”
With this in mind, LOVE shares “underappreciate meaningfully near- and longer-term prospects,” in Nagel’s opinion.
A 79% success rate and 38.4% average return per rating more than support Nagel’s #6 ranking on TipRanks’ list.
RingCentral
Bank of America Securities analyst Daniel Bartus just reinstated coverage of RingCentral given that it has the “right partners at the right time.” In addition to assigning a Buy rating, he also set a $450 price target, which puts the upside potential at 38%.
Although Bartus’ price target is based on 23x…
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