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2 shares flanking a bottom; Analysts say ‘buy’
The stock market closed the first week of 2021 on a positive note, with all three major indices reaching a new record high. The profits come because investors feel confident. The COVID vaccines are available and according to US President Joe Biden there is a greater stimulation of coronavirus on the way. But even in a rising market, it is still possible to find stocks that have not yet joined in general. profits. These stocks, whose prices are the bottom point, offer investors a choice and an opportunity. The choice is whether to take the risk or not; The opportunity is to buy low if the chance of profit is the best. Wall Street analysts know this and they do not hesitate to recommend stocks that could possibly reach the bottom. Using the TipRanks database, we identified two such stocks. Each is significantly lower, but each also has enough upward potential to justify a buy rating. BlueCity Holdings (BLCT) We will start an online platform and community service business, focused on the LGBTQ (lesbian, gay, bisexual and transgender) audience. . The company offers a range of online services including online appointments, entertainment, health advice, online pharmacy and family planning. BlueCity provides a connecting path for users to connect with service providers and platforms. The company has more than 50 million registered users in China and other Asian countries and boasts 6.3 million average users per month. Having a niche audience can be profitable, and BlueCity has found its progress. In the third quarter, the company reported 43.8% year-on-year growth in paying users, and 47.3% growth in the best revenue. Total revenue was $ 43.8 million. BlueCity reported a total of 494,000 paying users in its Blued dating app. In July last year, BlueCity held its IPO. The event was successful as the company debuted its stake in the middle of the expected price range and raised more than $ 85 million in new capital. At the end of the first day’s trading, BLCT closed at $ 23.43; since then, however, the share has fallen by ~ 60%. With the overall share for Oppenheimer, analyst Bo Pei sees a clear path forward to bigger profits, and believes the current low price is a buying opportunity. “BLCT generates 85% of the revenue from live streaming, and 6% from membership services. The current ratio for membership is significantly lower than that of peers. We expect membership to contribute a 21% revenue in 22E, which could increase valuation as the model has better retention, margins and visibility, “Pei noted. The analyst added:” Despite about 50% of its users outside China, they accounted for only ~ 10% of BLCT’s total revenue, as overseas monetization features were only recently introduced. BLCT sees positive feedback as it increases monetization efforts, and we expect the foreign revenue contribution to rise to 21% in 22E. “It is therefore not surprising why Pei gives BLCT a better performance (ie buy). Its price target of $ 20 supports its positive stance and proposes a solid increase of 97% for 2021. (See BLCT stock analysis on TipRanks) Some stocks are flying under the radar and BLCT is one of them. Pei’s is the only recent review by the analysts of this company, and it is is definitely positive. (See BLCT stock analysis on TipRanks) Strategic Education (STRA) Next is a private, for-profit education company, Strategic Education owns two online universities, Capella and Strayer, as well as several coding schools, including DevMountain, Generation Code and Hackbright Academy, and recently closed down on acquiring colleges in Australia and New Zealand. Zealand – Corona disruptions have been STRA severe and the share has fallen by 42% over the past 52 weeks, with earnings and earnings falling below expectations, falling year-on-year l. The summit was $ 239 million, with a profit of 47 cents, but in the third quarter, STRA began reopening persons to students in selected cities, including Augusta, Georgia and Arlington, Virginia, and that the Minneapolis business offices Jeffrey Silber, a 5-star analyst with BMO, sees positive and negative aspects in STRA at this point. He writes about the current situation of the company: “STRA reported mixed results of 3Q20, with Strayer entries underperforming, compensating for the improvement in Capella entries and cost management … Although the ‘outlook’ was disappointing, we are cautious optimistic that the trend will ‘get worse’ by 2021. ”Looking to the future, Silber believes that STRA’s diverse schools provide some buffer for the current economy – an overall positive effect for the company. Strayer U. still sees that declining new enrollments are being unduly hurt given the student demographics (for example, undergraduate, first-time university students) during the pandemic. Under contract, Capella U.’s enrollment was better than expected, as the demographics of students may be less affected (e.g., graduates, more able to work from home). Silver wrote: Silver rates STRA as a better performer (ie buy), and its $ 126 price target implies a 39% increase over the next 12 months. (To see Silber’s record, click here.) Over the past three months, only two other analysts have thrown in the hat with a view to STRA. The two additional buy ratings give the consensus rating for the stock. With an average price target of $ 121, investors can take a 33% profit home if the target is met over the next 12 months. (See STRA stock analysis on TipRanks) Visit TipRanks’ best stocks to buy, a newly launched tool that combines all of TipRanks’ equity insights, visit TipRanks’ best stocks to buy. article is only that of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.