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These three “strong buy” stocks are the best choice for 2021, analysts say
Some traditions are too outdated to escape, and on Wall Street the annual ‘top picks’ are one. The analysts of the street are usually published at the very end or at the very beginning of a year about the stocks that they think will show the best performance in the coming months – their best choice. The analysts carefully analyzed each stock, looking at past and present performance, trends in different time frames, management plans – they all take into account. Their recommendations offer valuable directions for setting up a resilient portfolio in the new year. To this end, we used the TipRanks database to identify three stocks that analysts describe as their ‘top picks’ for 2021. Talos Energy (TALO) The Gulf of Mexico has long been known as one of the world’s largest regions for hydrocarbon production, and Talos Energy, which produces approximately 48,000 barrels of oil equivalent per day from offshore operations in the Gulf, is a major player in the region. Talos ended the third quarter of 2020 with a net loss, but revenue of $ 135 million rose 53%, respectively. The company reported more than $ 353 million in available liquidity at the end of the quarter, including $ 32 million in cash on hand and $ 321 million in available credit. In December last year, and continuing into January, Talos strengthened its liquidity situation through issues of senior security letters. The December issue, of $ 500 million at 12%, will be used primarily to pay off a previous issue payable next year. The January issue, an additional $ 100 million, will be used to cover the outstanding debt on the reserve-based lending fund. Both issues are due in 2026. Northland analyst Subash Chandra highlighted TALO as its best E&P choice for 2021, writing: ‘TALO is one of the few companies we know we are trading PDP values without a good reason’ a good reason. . The company addressed the strain and credit stress with a stock offering and refi in December. They are entering 2021 with breathing space to cross the finish line with Zama and looking for scale opportunities in GoM. For this purpose, Chandra rates TALO as a better performer (ie buy) and sets a price target of $ 19, indicating the potential for 91% growth in the coming months. (To view Chandra’s record, click here. Overall, with five analyst reviews, including 4 Buys and a single Hold, Talos gets a strong buy rating from the analyst’s consensus. Shares are priced at $ 9.96, and their average target of $ 14.33 gives ~ 44% upside on the one-year horizon. (See TALO stock analysis on TipRanks) Twilio (TWLO) Next is Twilio, a cloud communications company in Silicon Valley. Twilio’s software services introduce customers able to operate their telecommunications service through their office computer servers and not only make phone calls available but also chats, texts and video calls.The service includes security features like user authentication.The COVID pandemic and the shift to remote work that economy was a blessing in disguise for Twilio, the move brought a premium on stable and reliable telecommunications connections and telecommunications, and the company’s revenue, which was already strong and in every quarter rtal successive gains rose to $ 447 million in 3Q20. After that, Twilio’s shares have risen by 225% over the past 52 weeks. Oppenheimer analyst Ittai Kiddron sees the company on a good footing for continued growth, writing: ‘While there are a number of tasks and tasks in the first quarter, Twilio’s long-term opportunity remains unappreciated by investors. We believe that the company’s differentiated product portfolio (communications / data) and the evolving GTM approach (leasing / GSI) can bring about the adoption / expansion of G2K / overall driving force and> 30% rev. growth on scale (> $ 4B / $ 6B) up to CY23 / 24. ”The 5-star analyst chooses TWLO as a ‘top choice’ based on his optimistic analysis of Twilio. It comes with a better performance (ie buy) and a price target of $ 550 which implies one annual growth of 41%. (Click here to see Kiddron’s record.) How does Kiddron’s strong bet weigh against the street? Overall, Wall Street likes Twilio, which is clear from the 21 analysts’ ratings. No less than 18 of them are Buys, at just 3 Holds. However, the stock’s recent share gains have raised the price to $ 388.65, leaving room for just 2% upside down before reaching the average price target of $ 396.88. (See TWLO stock analysis on TipRanks) SI-Bone (SIBN) Medical technology is an area of almost endless possibility, and SI-Bone has found a niche. The company specializes in the diagnosis of sand treatment of pain and dysfunction in the joint between the lower back and pelvis. The company’s revenue declined between 4Q19 and 2Q20 as the corona crisis put a damper on elective medical procedures. It turned around in Q3 when the economy started to open up; many industries, including the medical field, have seen a successive demand that has not yet disappeared. In raw numbers, SIBN reported a consecutive revenue increase of 42% for the third quarter, with the highest line at $ 20.3 million. Revenue increased by 26% year-on-year. During the quarter, the company passed 50,000 iFuse procedures, which are handled by 2,200 surgeons around the world. The company had $ 132 million in liquid assets available at the end of the quarter, against $ 39.4 million in long-term debt. If we look forward to it, the company leads to an annual profit of 8% to 10% for the annual revenue for 2020, with the expectation that the top line will be from $ 73 million to $ 74 million. Analyst David Saxon, who covers the shares for Needham, says: ‘SIBN showed resilience during the pandemic, and we believe its growth problems could enable it to pass the consensus revenue through 2021. Furthermore, we expect that the expansion of SIBN’s 2021 sales staff will grow, surgeon training, upcoming product launches and direct-to-patient marketing will all contribute to strong revenue over the next few years. Saxon uses these points to support its ‘top-choice’ status for SIBN. Its average price target is $ 35, indicating a 23% increase, which fits well with its Buy rating. (Click here to see Saxon’s record.) All in all, SI-Bone gets a strong buy from Wall Street, and it’s unanimous – based on 5 positive reviews. The stocks are selling for $ 28.48, and their average target of $ 33.80 implies room for ~ 19% growth over the course of 2021. (See SIBN stock analysis on TipRanks) To find great ideas for stocks that are at trading attractive valuations, visit TipRanks ‘best stocks for Buy, a new tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.