3 “Strong Buy” stocks from top Wall Street analysts
Finally, the horribilus year 2020 is drawing to a close and it’s time to put our wallets in order for the new year ahead. There is good news set to encourage investors for 2021. Proof that the government can sometimes act with speed and decision, the FDA has granted emergency clearance for Pfizer and Moderna COVID vaccines, and injections are coming in distribution networks. The election is settled, except for the second round of the Georgia Senate, but no matter how it goes, the overall results are in: a tightly divided government with no clear mandate for sweeping legislation. This is a sign of regulatory stasis, which means predictability, which is good for the markets. These are the facts behind the surge in investor sentiment, which has pushed the Dow Jones, S&P 500 and NASDAQ to rock bottom. record levels. And it is this optimistic sentiment that prompts top Wall Street analysts to pick stocks as potential winners for the coming year. And when we say the best Wall Street analysts are making these calls, we mean it. These are top 5 analyst stock picks from the TipRanks database. They are the stock market experts with the most recommendations on file, the best success rate and the highest average return. So let’s see what they have to say about these three Strong Buy stocks. ZoomInfo Technologies (ZI) technology companies, especially in the cloud, communications and marketing segments, have clear opportunities during the COVID pandemic. ZoomInfo is part of this group; the company’s services include digital marketing intelligence, account and data management, demand generation, and prospect development. ZoomInfo offers cloud AI software designed to make these background tasks more efficient, so sellers can focus on selling. ZI stocks have seen volatile trading since their IPO in June 2020, but in overall, the stock is up 34% year-to-date. The third quarter, ZoomInfo’s first full quarter as a public company, showed strong results to encourage investors. Premium-end revenue reached $ 123.4 million, up 11.8% sequentially and 56% year-over-year. EPS, which had been negative in Q2, turned positive in Q3 with earnings per share of 2 cents. The company ended the quarter with $ 59.8 million in free cash flow. ZoomInfo reported having 720 clients with an annual contract value of $ 100,000 or more. In his ZoomInfo review, Piper Sandler’s Brent Bracelin, rated 1 Wall Street analyst by TipRanks, presents a simple, bullish case. “We are increasing the revenue estimates by $ 13.6. M for this year and $ 19.6 million for next year taking into account the overall strength and minor contributions from the Everstring and Clickagy acquisitions. We are buyers of ZI based on its ambitions to build a modern operating system to market (GTM) with a unique business model balancing high growth and high margins… Based on strong third year results quarter and a favorable outlook in the fourth quarter, we would be aggressive buyers of ZI given its unique profile as a high growth, high margin model with limited downside risk, ”Bracelin said. Bracelin sets a price target of $ 59 to accompany this overweight rating (i.e. buy), suggesting that ZI has room for ~ 25% growth next year. (To see Bracelin’s track record, click here) Overall, there are 9 recent reviews recorded for ZoomInfo and all of them are buys – making the analyst consensus rating a strong unanimous buy. The shares are priced at $ 47.03 and the average price target of $ 55.89 indicates upside potential of around 19% from this level. (See ZI Stock Market Analysis on TipRanks) Ichor Holdings (ICHR) Next up is a holding company, whose subsidiaries design, design and manufacture essential gas and chemical fluid distribution systems in a variety of industries. Ichor is best known for his contributions to the capital goods of the semiconductor industry, where its gas module and chemical processing subsystems represent a substantial portion of the cost of each chip. Ichor systems are also used in the manufacturing of LED displays, biomedical equipment, and alternative energy sources. Specialty manufacturing can be a solidly profitable niche, especially when a company makes parts and tools necessary for high-tech industries. Semiconductor chips are essential in the digital world, and they cannot be manufactured without input from Ichor’s tools. This gives Ichor a competitive edge, as it offers a product that its customers cannot live without, as shown by quarterly revenues, which grew slowly but steadily through 2020. The company saw $ 220 million at the top. in the first quarter, and grossed $ 228 million in the third quarter. The third quarter was up 47% year-over-year and was the sixth consecutive quarter to post sequential gains. EPS, at 45 cents per share, rose 28% year-on-year. Among the fans is Needham’s Quinn Bolton, who is ranked 2 on Wall Street, according to TipRanks.[We] believe Ichor’s fundamentals remain strong … we expect the offering will enable ICHR to pursue meaningful profitable mergers and acquisitions which should strengthen its market position, accelerate revenue growth and enable vertical integration and gross margin higher over time. Looking further, if the company reaches its LT operating model in the next ~ 3 years, we see NG earnings power of $ 4.85 per share, ”commented Bolton. To that end, Bolton rates the stock as a buy, and his price target of $ 40 implies a one-year rise of 32%. (To see Bolton’s track record, click here) Like Bolton, Wall Street chooses ICHR as its long-term winner. With 4 unanimous buy ratings awarded in the past three months, the stock is getting consensus from Strong Buy analysts. Adding to the good news, his average price target of $ 40 places the upside potential at ~ 32%. (See ICHR stock market analysis on TipRanks) DocuSign (DOCU) Last but not least, DocuSign, San Francisco’s cloud-based electronic signature service. DocuSign offers its customers a verified and secure electronic signature option for online documents. Customers realize savings through efficiency in the form of faster turnaround time, less ink and paper used in printing, and less time spent printing and distributing documents. hard copies for signing. DocuSign enjoyed strong appreciation in 2020, as the movement towards remote working and virtual offices emphasizes digital services and online verification. DOCU is up 205%, more than tripling its value this year. The stock gained as the income of the company increased. The top line rose 29% between the first and third quarters, with the third quarter figure reaching $ 382.9 million. Third-quarter profits were up 53% year-on-year. Even more impressive was the year-over-year increase in free cash flow, from $ 14 million to a surplus of $ 38 million, which leads RBC’s Alex Zukin, the 3rd TipRanks database analyst, evaluate DOCU as outperforming (i.e. with a price target of $ 325. Investors should pocket a 44% gain if the analyst’s thesis comes to fruition. (To see Zukin’s balance sheet, click here) Supporting his position, Zukin writes: “[The] The beats continue as DOCU achieved another really strong quarter-boost on every metric … What’s even more impressive to our mind is that this is driven almost entirely by an acceleration in core business signature, the company being convinced that it is still very modestly penetrated into its TAM (which has grown considerably) that they can maintain growth above pre-pandemic levels in a post-pandemic world… ”From even other Wall Street analysts like what they see. With 10 buy ratings versus 3 takes received in the past three months, the stock is earning a Strong Buy consensus rating. With an average price target of $ 276.46, analysts see roughly 22% in-store upside potential for DocuSign. (See DOCU Stock Market Analysis on TipRanks) To get great ideas for stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the stock information from TipRanks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.