…Earnings for companies in the S&P 500 are expected to grow 17.3% in the first quarter, with sales up 10%. These rates represent the fastest pace of growth since the first quarter of 2011. [In this article we have identified only stocks]…that have a ?Strong Buy' and ?Moderate Buy' analyst consensus rating [and,] from the generated results, we scanned for stocks with notable upside from current prices.
The original articlehas been edited here for length (…) and clarity ([ ])
Now let's delve deeper into these five top stocks:
1. Zions Bancorp (ZION)
Vining Sparks' Marty Mosby is one of the Top 10 analysts on TipRanks for his stock picking ability.
In his first-quarter earnings preview, Mosby upgraded Zions bank from ?Buy' to ?Strong Buy' stating that?We believe that ZION should be able to generate stronger revenue per share growth than the market currently anticipates, as it should benefit from both rising interest rates and their respective strategic initiatives.? This rating comes with a $65 price target (24% upside potential).
2. T-Mobile US (TMUS)
T-Mobile US, Inc. is the third-largest wireless carrier in the US. The company is easily outpacing competitors down to: 1) a greatly improved network, and 2) targeted marketing for under-served urban and rural areas.
In 2017, for example, TMUS opened 1,500 T-Mobile-branded stores and 1,300 MetroPCS-branded stores so it's not surprising that top Oppenheimer analyst Timothy Horan is feeling confident ahead of earnings season. In his cloud 1Q18 earnings preview, he writes that TMUS is ?about the only company doing well [in adding subscribers], capturing 100% wireless subscriber flow share.? As a result, he concludes ?We expect TMUS to deliver upbeat financial results following its better balance of sub growth and margins.?
Our data shows that TMUS scores straight As from the Street with 7 recent buy ratings. Moreover, the $76 average analyst price target translates into over 20% upside potential.
3. Gilead Sciences (GILD)
Following a tough couple of years, Gilead is now looking much more promising. The company suffered on the rapid decline of its key hepatitis franchise - and share prices halved from 2015 to 2017…[but,] according to top RBC Capital analyst Brian Abrahams,Gilead is now set up for some of the biggest potential beats in the biotech sector.
Abrahams is betting on ?a strong 1Q for GILD, as the mix shift of HIV revenues continues to track more favorably for GILD's long-term life cycle and the HCV market looks to be steady to slightly up.? As a result, Abrahams has a bullish $94 price target on GILD (26% upside potential).
4. Raytheon (RTN)
Defense giant Raytheon is the world's largest producer of guided missiles. ?Raytheon is seeing strong demand in missiles, missile defense, and international markets, with strength in each of these niches likely continuing since last quarter,?writes RBC Capital's Matthew McConnell in his Q1 preview.
He sums up the stock's setup into earnings as follows: ?RTN is up +15.5% YTD, +660 bps vs peers as the defense environment remains solid and it is among the best-positioned of the defense primes for the Trump administration's new National Defense Strategy.? McConnell's $262 price target indicates 20% upside potential from current levels.
Encouragingly, TipRanks shows that Raytheon also scores a ?Strong Buy' analyst consensus rating. In the last three months, RTN has received 7 buy ratings vs only 1 hold rating. The average price target of these analysts works out at $235.
5. Amazon (AMZN)
Goldman Sachs has picked Amazon as one of its top 7 stocks for this earnings season…[stating] ?Consensus forecasts double-digit sales growth in energy, information technology, and materials. Strong top-line growth is consistent with solid economic activity in the first quarter.?
Overall the Street is very bullish on Amazon right now. In the last three months, 37 out of 39 analysts have published ?Buy' ratings on the stock. Moreover, analysts (on average) are predicting further upside from current share prices of 18%. This is despite the fact that the stock is already trading above $1460.
Five-star RBC Capital analyst Mark Mahaney explains: ?Even though AMZN has consistently traded at a premium valuation level (average forward P/E multiple of 35?40x+ since 2007), its sector-leading forward EPS growth outlook and its high EPS quality (very high FCF conversion) warrant, in our opinion, a considerable market multiple premium.?
The following 10 companies have demonstrated strong financial positions through passing the rigorous requirements of the ModernGraham Investor and show potential for capital growth based on their current price in relation to intrinsic value. As such, these Graham Number stocks may be a great investment if they prove to be suitable for your portfolio after your own additional research.
Earnings estimates embody analysts' opinions of factors such as sales growth, product demand, competitive industry environment, profit margins and cost control. Thus, earnings estimates serve as a valuable tool while taking investment decisions. Earnings estimates also help analysts assess the cash flow to determine the fair value of a firm.
As recreational legalization in Canada approaches this summer, the 4 marijuana stocks on our list today have plans to meet the upcoming demand. If the marijuana sector continues its rally, these stocks…are expected to generate significant EBITDA growth over the coming year.
Below we have selected five large-cap growth ETFs that provide exposure to the broad stock market instead of a particular sector. All these funds have a Zacks Rank #2 (Buy) with a lower expense ratio of under 10%, making them superior relative to other choices in the growth space.
Continued U.S. focused inflationary measures might put pressure on the U.S. dollar, which could send the U.S. dollar gold price higher. Today, we showcase our top 10 junior gold picks for the month of April.
Which are the key stocks out there right now to boost your portfolio's second quarter returns? All the 5 stocks below have a ?Strong Buy' analyst consensus rating. With that being said, let's dive in and take a closer look at why these stocks have such a bullish analyst rating right now:
To take advantage of another potential upswing in the market, we have selected 5 cannabis companies, which analysts believe are undervalued. The Canadian marijuana stocks on our list today currently have 100% upside on average according to analysts, indicating that these stocks could post strong returns in the near-term.
I evaluated a lot of different companies this week to determine whether they were suitable for Defensive Investors…or Enterprising Investors…[and] put each company through the ModernGraham valuation model based on Benjamin Graham's value investing formulas in order to determine an intrinsic value for each. I came up with the following 5 companies that warrant your attention.
Most of the big players in stock screeners, actually offer a service that is garbage and not worth your time. Stick with these 4 review winners and you will know you have the best.
Investors on the lookout for stocks with the potential for maximum growth and value investing may consider the growth at a reasonable price or GARP strategy. Using the GARP principle, we have run a screen to identify stocks that should offer solid returns in the near term and have come up with 16 of which 7 are highlighted in this article.
The 4 gold miners on our list today trade at a significant discount to the peer average of 2.7x. These producers could represent value plays for a future gold rally.
We want to invest in the most profitable companies in the market, and also want to consider companies with superior profitability in comparison with the industry average and the following quantitative ranking system does just that picking the 50 companies with highest quality ranking in the S&P 500 index.
An investor friend of mine, Howard Lindzon, keeps a list of…14 stocks which he has identified as having strong staying power over the next couple decades, based on the fact that nearly everyone ages 8 to 80 has heard of and/or uses these products consistently. He calls it the "8 to 80 Watch List".
InvestingHaven's research team screened 136 China stocks currently listed in the USA, and selected the top 5 China stocks which are worth considering in 2018.
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