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Analysts say ‘Buy the dip’ in these three stocks
Smart stock investing should not be emotional, but after all, investors are only human, which makes it difficult to follow a rational trading strategy. Investors should remember Warren Buffett’s advice: “We simply try to be scared when others are greedy and only be greedy when others are scared.” What Buffett advocates is the market’s oldest advice: buy low and sell high. If we take this into account, we are looking for compelling investment opportunities at a discount. Using the TipRanks database, we were able to find three stocks that are lower than their recent peaks, while some Wall Street analysts recommend ‘buying the dip’. Let’s take a closer look. Teladoc Health (TDOC) We start with Teladoc, a remote medical care service that uses online networks to connect patients with physicians for non-emergencies, including ear-nose-throat problems, laboratory referrals, basic medical advice and diagnoses, and prescriptions for non-addictive drugs. In the company’s words, these are ‘remote home calls by primary care physicians’, which use digital technology to provide an old-fashioned service. Teladoc’s service is very popular and the coronation year the company thrived – its business model was perfectly suited to COVID-19 pandemic conditions. Annual revenue increased by 98% year-on-year in 2020, to 1.09 billion, and total patient visits increased by 156% to 10.6 million. In addition, the company completed its merger with rival Livongo in October, in a $ 18.5 billion deal. Teladoc shareholders now own 58% of the combined company. Although the move contributes to Teladoc’s capabilities and potential patient base, it also meant that the company incurred large costs during the fourth quarter. Teladoc had to pay up cash for the merger, and as a result, the Q4 earnings results showed a heavy profit loss of $ 3.07 per share. In addition to the net loss of the fourth quarter, investors are also worried about the 2021 lead. Specifically, the figure is likely to be between 52 million and 54 million, implying an annual growth of + 3.4-7.4%. That is far from + 40% in 2020 and + 61% in 2019. The share has fallen by 37% since its recent high in mid-February, but 5-star analyst Richard Close of Canaccord says ‘buy this dip’. ‘Brightness points such as sales with more products, increasing utilization, new registration capacity and visitor growth in non-infectious areas trump the membership if it is all said. Opportunities have presented themselves in the past to jump into Teladoc (or collect it). We believe this is one of the opportunities, ‘Close remarked confidently. Close this comment with a buy rating and a price target of $ 330, which implies a 78% increase in the next 12 months. (To view this, click here.) Teladoc has generally built up a lot of interest in Wall Street. There are 21 reviews on the stock, 13 of which are for sale and 8 take possession, giving TDOC a moderate buy-consensus rating. The stock is selling for $ 185.43, while the average price target of $ 255.05 indicates an upward one-year of ~ 38%. Agnico Eagle Mines (AEM) From medical care we move to the mining industry because sometimes owning a gold mine is the best thing to own gold. Agnico Eagle has been a Canadian gold miner in the business for over 60 years. The company has active mining operations in Canada, Mexico and Finland and showed strong production in 2020. The company’s Q4 report produced more than 501,000 ounces of gold, at a production cost of $ 771 per ounce – at an overall sustainable cost of $ 985 per ounce. The quarterly performance was duplicated for the full year 2020. Total gold production exceeds 1.73 million ounces, the peak of previously published annual guidance, and production cost per ounce, $ 838, was well below the year’s all-in maintenance cost of $ 1,051 per ounce. High production – the fourth quarter was a company record – led to high revenue. Agnico reported a net income of $ 205.2 million in Q4, which was 85 cents per share. Full-year revenue was $ 511.6 million, or $ 2.12 per share. This figure included the loss of 9 cents per share in the first quarter and was still 6% higher than the 2019 figure. Despite the strong 2020 annual figures, AEM shares have slipped since the earnings release, falling about 21% of their value. Although the company is profitable and production meets expectations, earnings fell by 7.6% and 38% year-on-year in the fourth quarter, respectively. Analyst Anita Soni writes about this stock for CIBC: ‘We believe the market reaction is exaggerated due to quarterly earnings, and we would recommend that investors add their positions to the decline … We still hold on to Agnico for its record of prudent capital allocation, mainly organic growth strategy, exploration expertise (evident in the strong replenishment of reserves and addition of resources in a COVID year), project pipeline and strong management. In light of these comments, Soni has set a price target of $ 104 to go with a better performance (ie buy). Its target implies a one-year upward potential of 73% from current levels. (To view Soni’s record, click here. Agnico Eagle gets a consensus rating from the strong buy analyst, based on 12 recent reviews that include 9 Buys versus 3 Holds. The shares cost $ 60.12 and their average price target of $ 85.62 implies an upward potential of 42% for the coming year. (See AEM stock analysis on TipRanks) Redfin (RDFN) Last but not least is Redfin, an online real estate broker in Seattle, with a business model based on modest fees (in the 1% to 3%) for sellers to list their homes and to close the auction.The company aims to make the home tour, which speeds up the debut and sponsorship processes Redfin posted a year-on-year revenue gain of 4.7% in the fourth quarter, with the highest line reaching $ 244 million, and the EPS, at 11 cents, was well above the net loss of 8 cents recorded in the previous quarter, both figures beating Wall Street’s estimates by significant margins . For the full year 2020, the net loss is $ 18.5 million, or less than a quarter of the 2019 figure. Since the earnings were released, RDFN shares have fallen by 25%. Investors are somewhat wary of the Q1 guidance for the company for a quarterly loss in the range of $ 36 million to $ 39 million. This is higher than the total loss of 2020, and there is concern that Redfin is moving away from profitability. The company is faced with two factors with growth winds, a lack of agents and a lack of properties to list. The first factor can be leased, but the second is beyond the company’s control – and only partially compensated by higher property values. Ygal Arounian, 5-star analyst at Wedbush, wrote a note on Redfin entitled ‘Buy the Dip, There’s a lot to Like Here’. ‘The strength in the housing market continues to bring significant benefits to Redfin, where it is struggling to keep up with demand. “Clients requesting service from agents were +54 y / y, even after Redfin changed its website, discouraging customers from requesting tours when an agent would probably not be available,” Arounian wrote. said: “Redfin still does not have nearly the amount of agents it needs for the demand it sees, and hires aggressively to get there. Agency recruitment increased by ~ 80% for principal agents in December / Jan compared to Sep / Oct. Redfin also sees increasing recurrence rates and referrals, which may support longer growth. To this end, Arounian sets a price target of $ 109 on the stock, indicating its confidence in a 57% upward one-year, and supports its Outperform (ie Buy) rating. (To view Arounian’s record, click here.) Redfin’s shares have received ten recent reviews, with a split of 4 Buys and 6 Holds, for a consensus assessment of moderate analysts’ purchases. The average price target is $ 87.71, which is an increase of 27% compared to the trade price of $ 69.22. (See RDFN stock analysis on TipRanks.) To find great ideas for stocks trading at attractive valuations, visit TipRanks ‘best-selling stocks, a new tool that unites all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.