TipRanks
3 “Strong Buy” Shares of the Best Analysts on Wall Street
Finally, the annus horribilus 2020 ends and it’s time to get our portfolios ready for the new year ahead. There is good news to encourage investors for 2021. As proof that the government can sometimes move quickly and decisively, the FDA has granted emergency approval for both the Pfizer and Modern COVID vaccines, and the shots are coming in the distribution networks. The election was concluded, except for the expiration of the Georgia Senate, but however it turns out, the overall results are well known: a narrowly divided government, without a clear mandate for comprehensive legislation. This is an important sign of regulatory stasis, meaning predictability, which is good for markets. These are the facts behind the rising sentiment of investors, which has driven the Dow Jones, the S&P 500 and the NASDAQ to record levels. And that’s optimistic sentiment prompting Wall Street’s leading analysts to select equities as potential winners for the coming year. And when we say that Wall Street’s top analysts are making these calls, we mean it. These are stock picks from analysts among the top 5 in the TipRanks database. These are the stock 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) Tech 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 head tracking. ZoomInfo provides AI cloud software designed to make these background tasks more efficient, allowing salespeople to focus on sales. ZI shares have been trading volatile since it was announced in June 2020, but overall the stock is 34% higher than the previous year. .The third quarter, ZoomInfo’s first full quarter as a public company, showed strong results to encourage investors. Revenue at the highest line reached $ 123.4 million, 11.8% and 56% higher year-over-year, respectively. The profit, which was negative in Q2, became positive in Q3 with a profit of 2 cents per share. The company ended the quarter with $ 59.8 million in free cash flow. ZoomInfo reports that it has 720 customers with an annual contract value of $ 100,000 or more. In his review of ZoomInfo, Brent Bracelin of Piper Sandler, who gave TipRanks the first analyst on Wall Street, gave a straight bullish case. ‘We are increasing revenue estimates by $ 13.6 M for this year and $ 19.6 million for next year to take into account with broad power and small contributions from Everstring and Clickagy acquisitions. We are buyers of ZI based on its ambitions to build a modern GTM operating system with a unique business model that balances high growth and high margins … Based on strong Q3 results and favorable Q4 prospects, we will be aggressive . ‘buyers of ZI given the unique profile of a model with high growth and a high margin with limited downward risk,’ ‘Bracelin believes. Brazil sets a price target of $ 59 with this overweight (ie buy) rating, which indicates that ZI has room for ~ 25% growth next year. (Click here to see Bracelin’s performance history.) In total, there have been 9 recent reviews for ZoomInfo and all are Buys, making the analyst’s consensus rating a unanimous strong buy. Shares are priced at $ 47.03 and the average price target of $ 55.89 indicates an upward potential of 19% from that level. (See ZI stock analysis on TipRanks) Ichor Holdings (ICHR) Next is a holding company whose subsidiaries make design, engineering and manufacturing systems for gas and chemical fluids that are essential in a variety of industries. Ichor is best known for its contributions to the capital equipment of the semiconductor industry, where the gas module and subsystems for chemical processes make up a significant part of the cost of each chip. Ichor’s systems are also used to manufacture LED screens, biomedical equipment and alternative energy sources. Specialized manufacturing can be a solid profitable niche, especially if a business builds parts and tools needed for leading industries. Semiconductor chips are essential in the digital world and cannot be manufactured without importing Ichor tools. This offers Ichor a competitive advantage as it offers a product that its customers cannot do without. This can be seen in the quarterly income which rose slowly but steadily in 2020. reported $ 228 million in the third quarter. The third quarter rose 47% year-on-year and was the sixth consecutive quarter with successive gains. The EPS, at 45 cents a share, rose 28% a year. Among the fans is Quinn Bolton from Needham, who according to TipRanks takes second place on Wall Street.[We] I believe that the fundamental principles of Ichor remain strong … we expect that the offer will enable ICHR to pursue meaningful acoustic M&A that will strengthen its market position, accelerate revenue growth and provide for vertical integration and higher gross margin over time. If we look further, the company would achieve its LT operating model over the next ~ 3 years, we see the NG earnings of $ 4.85 per share, ”said Bolton. To that end, Bolton is considering a buyout, and its $ 40 price target implies an upward one of 32 years. (To see Bolton’s record, click here.) Like Bolton, Wall Street chooses ICHR as a long-term winner. With 4 unanimous buy ratings granted over the past three months, the stock deserves a strong buy consensus. The good news is that the average price target of $ 40 puts the upside potential at ~ 32%. (See ICHR stock analysis on TipRanks) DocuSign (DOCU) Last but not least is DocuSign, San Francisco’s cloud-based electronic signature service. DocuSign provides customers with a verified and secure electronic signature option for online documents. Customers achieve savings through efficiency, in the form of faster turnaround, less ink and paper used for printing, and less time printing and distributing hard copies for signature. DocuSign shares saw a strong appreciation in 2020 as the move to remote work virtual offices puts a premium on digital services and online authentication. DOCU is up 205%, more than tripling its value this year. The stock rose as the company’s revenue rose. The top line rose 29% between the first quarter and the third quarter, with the third quarter of $ 382.9 million. Earnings in the third quarter increased by 53% year-on-year. The yoy increase in free cash flow was even more impressive, turning from a negative $ 14 million to a surplus of $ 38 million. All this leads to Alex Zukin, the three analysts in RBC’s TipRanks database, rating DOCU a better performance (ie buy). with a price target of $ 325. Investors will get a 44% profit in their pocket if the analyst’s dissertation were to play. (Click here to see Zukin’s record.) Zukin supports his position and writes: ‘[The] Beats continues while DOCU still delivers a very strong quarter of acceleration on every beat … What’s even more impressive in our minds is that it’s driven almost entirely by an acceleration of the core business for e-signature, with the company confident that in its TAM (which has expanded significantly) it is still very modestly intruded that they can maintain growth above pre-pandemic levels in a post-pandemic world … ‘Similarly, other Wall Street- analysts of what they see. With 10 Buy ratings versus 3 Holdings received over the past three months, the stock deserves a strong Buy consensus rating. At an average price target of $ 276.46, analysts see DocuSign having an upward potential of ~ 22%. (See DOCU stock analysis on TipRanks) Visit TipRanks ‘best-selling stocks, a newly launched tool that combines all of TipRanks’ equity insights. those of the popular analysts. The content is for informational purposes only. 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