TipRanks
3 shares Goldman Sachs says ready to tear higher
Is the bull market about to blow long? Not according to Goldman Sachs. The firm believes that the bull market still has a long way to go; Peter Oppenheimer, global equity strategist, recently noted that the market is moving from a ” Hope ‘phase to a longer’ Growth Phase ‘. ‘The company’s economists expect the economy to grow by 6.8% in 2021 and believe that the unemployment rate could fall to 4.1% by the end of the year. And there is enough evidence to indicate that the economy is recovering. Although unemployment remains high, demand has fallen since early January and retail sales have fallen sharply. The decline in Covid-19 cases and a growing vaccinated population is an added boost. The big federal stimulus, too. “We are likely to achieve a very high growth rate,” Goldman chief economist Jan Hatzius added. “Whether it’s a boom or not, I think it’s a V-shaped recovery.” To that end, the firm’s analysts have identified three stocks that they say are ahead of the curve. Using the TipRanks database, we can see what the rest of the street makes of Goldman’s choices. If this happens, these names are also bought by the consensus of the analysts. Patria Investments (PAX) The first Goldman choice is Patria Investments. This Brazilian asset manager is one of the leading investment firms in Latin America and has raised more than $ 8.7 billion in investment capital since 2015. By the end of 3Q20, the last date for which data was available, the company had invested a total of $ 12.7 billion in assets under management in $ 16.7 billion. The direct investment portfolio included more than 55 companies. Last month, Patria made its debut in the U.S. stock markets and was listed on the NASDAQ as PAX on January 22nd. The plan was to raise $ 400 million in new capital; in that case, the company raised nearly $ 512 million. The 30.1 million shares brought to market were 3.4 million more than asked for, and as a contribution to the success, it sold at $ 17, in the expected range of $ 14 to $ 16. After the IPO, Patria was valued at $ 2.3 billion and the market capitalization has now reached $ 2.77 billion. The company drew the attention of Goldman analyst Tito Labarta, who wrote: ‘We think Patria is well positioned to take advantage of the continuing trends for’ equalization ‘in Brazil, given the historically low interest rates as investors move to higher levels. looking for returns … We think Patria is well positioned to grow its AUM over the next three years at a healthy rate of around 20% per annum … while distributable earnings (DE) could grow by 42% per annum , as the company realizes the performance fees of closed funds next year several years. Consistent with the optimistic outlook, Labarta is considering a buyout, and its $ 28 price target indicates its confidence in the 35% rise for next year. (To see Labarta’s record, click here.) In its short time as a listed company, Patria has attracted 5 reviews, breaking them down 3 to 2 in favor of Buy versus Hold. The stock is priced at $ 20.74 and their average price target of $ 26.60 implies an upward twelve months of ~ 23%. (See PAX stock analysis on TipRanks) Constellation Brands (STZ) Some companies need an extensive launch, some of which we are familiar with. Constellation Brands is in the latter category. The company is the largest beer importer in the US, measured by sales, and is consistently among the top three, measured by market share. Constellation’s portfolio includes more than 100 brands of beer, wine and spirits, and is best known as the US owner of Mexico’s beer Corona and Modelo. In its last reported quarter, 3Q20, STZ showed good profits per year. Specifically, the company posted $ 2.44 billion on the top line, with a 22% year-on-year profit. Non-GAAP earnings per share were also higher at $ 3.09 per share, surpassing the $ 2.39 consensus estimates. It was the fourth consecutive quarter that STZ beat expectations. However, the company got into trouble around Corona (the beer, not the virus). The case was filed by Grupo Modelo, the Mexican branch of international liquor giant AB InBev, against Constellation, alleging that it violated an agreement on the use of the Corona brand. Constellation bought the US rights to the name in 2013, when AB InBev acquired Grupo Modelo, producer of Corona beer. In 2020, STZ introduced Corona Hard Seltzer and ABI now claims that STZ’s ownership of the name only applies to beer. Constellation struck back with documentation claiming to own all exclusive rights to the Corona trademark in the US. Bonnie Herzog, Goldman’s expert on the beverage industry, notes that Constellation has already won an arbitration session on the Corona issue (Corona Hard Seltzer was finally launched in February 2020). “While we do not consider the outcome of this lawsuit, we believe that the sale of STZ’s shares is exaggerated and that it is a good entry point, especially considering how small Corona Hard Seltzer is today for STZ’s total portfolio, “said Herzog. “We continue to expect the stock to rise higher in the long run, driven by faster and more profitable growth.” Herzog still views STZ as a solid portfolio growth, maintaining its Buy rating and $ 275 price target. At current levels, this implies ~ 23% upside down over a period of one year. (To see Herzog’s record, click here.) Wall Street generally likes STZ, as evidenced by the 10 reviews on the buy side compared to only 5 Holds. This gives the stock a consensus rating from the moderate buy analyst. Shares cost $ 223.93, and their average price target of $ 253.20 indicates room for growth of 13%. (See STZ stock analysis on TipRanks) Kornit Digital (KRNT) Kornit Digital is an interesting niche in the technology and manufacturing world that manufactures high-speed inkjet printers, along with pigmented inks and chemical products. The business’s customer base comes from the clothing, apparel and textile industries. Textiles make up a large part of the world economy, are used in a wide range of sectors and appear everywhere we go – so Kornit does not have a shortage of customers, and even the corona crisis can not derail its business for long. This is evident from the company’s share performance and quarterly finances over the past year. The share price has risen 180% over the past twelve months, while earnings after the first quarter drop of 20 in each quarter have shown consecutive gains since and a year-on-year gain in Q3 and Q4. The results for the fourth quarter included $ 72.3 million on the top line, an annual profit of 45%. The company eventually achieved the estimates, with a Non-GAAP EPS of $ 0.24 that is $ 0.02 higher than Street’s forecast. Goldman’s Rod Hall attributes Kornit’s power to ‘broad performance on demand as the company continues to see winds of digital printing and e-commerce’. The analyst further notes the unexpected effects of the COVID pandemic on Kornit’s business: ‘Although we originally believed that current growth may be unsustainable as we leave COVID, we are increasingly convinced that COVID made possible the use of personalized fashion technology. has. We also believe that COVID companies may have been driven to use this technology to reduce physical inventory. Everything KRNT does has convinced Hall to upgrade its stake from Neutral to Buy. In addition to the call, the analyst has raised its price target from $ 83 to $ 135, indicating that the upside potential is 17%. (To view Hall’s record, click here) Kornit has a unanimous strong buy rating from the consensus analyst, after recently receiving 6 Buy reviews. This stock has risen sharply over the past few weeks, pushing the share price almost to the average price target of $ 124. This leaves room for ~ 8% upside down from the current trading price of $ 115. (See KRNT stock analysis on TipRanks.) To find great ideas for stocks that trade at attractive valuations, visit TipRanks ‘best stocks to buy,’ a newly introduced tool that unites all the TipRanks shares of the shares. 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.