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Wells Fargo: these two stocks could climb at least 30%
Following the sell-off in January, the first week of trading in February made the stock market strong in bull mode again. All three major indices ended the week at or near-all-time highs as the market responded favorably to the latest postal data and the Democrats’ decision to continue with a $ 1.9 billion stimulus package. Where is the market heading then? Investment firm Wells Fargo foresees long-term appreciation for the stock markets. Scott Wren, senior international equity strategist at Wells Fargo, is trying to give a glimpse into the future, and that’s a factor we’ve discussed in the past, and we believe it will continue to drive the drivers this year. Positive vaccine news, easy monetary policy followed by the Federal Reserve, and additional expected stimulus from the government have helped the stock market … ”Against this backdrop, Wells Fargo analysts hit the table on two stocks, noting that each could rise at least 30 % in the coming year. After running the two through TipRanks’ database, we found out that the rest of the street is also square in the bull camp. Guild Holdings (GHLD) The stock market may be gaining momentum, but most Americans do own real estate. The two markets intersect when real estate ventures become public. Guild Holdings is a mortgage company that establishes, sells and serves home loans in the US residential mortgage sector. The company has a footprint in most states and operates through retail and word-of-mouth channels. The San Diego-based company held its IPO in the latter half of October last year. The opening was only moderately successful, with the stock being at or near $ 15, below $ 17. Guild Holdings sold 6.5 million shares, which was lower than the 8.5 million expected. The exchange raised $ 97.5 million, and the company boasts a current market value that repeats our overweight rating on GHLD. $ 972.6 million. Looking ahead, Donald Fandetti, analyst at Wells Fargo, thinks the company is well positioned to take advantage of the current climate. “Despite the rising interest rates, we believe that management has had a confident attitude that their business model should hold up relatively well, given their purchasing / retail orientation. There is also the opportunity to fill their branch track in areas such as North East. The rising “The return of the year has further negative investor sentiment for originals,” said the analyst. In this environment, Fandetti continues to “value and buy exposure to mkt”, and therefore its strong share in the Consistent with these comments, Fandetti rates GHLD as overweight (ie buy), and its $ 22 price target indicates a potential 36% upward growth in the coming year (To view Fandetti’s record, click here. The rest of the street is also on board. 4 Buys and 1 Hold awarded over the past three months yield a consensus from the Strong Buy analyst. The stock sells for $ 16.21, and the average price target of $ 19.30 implies an upward one of 19%. (See GHLD stock analysis at TipRanks) PDC Energy (PDCE) PDC Energy is a hydrocarbon producer based in Denver, Colorado. The company operates in the Wattenberg field of its homeland, as well as in the Delaware basin of the oil formation in Texas. PDC produces oil, natural gas and natural gas fluids through an aggressive horizontal drilling program. PDC saw revenue decline in the first quarter and continue to decline in the second quarter, but in the third quarter the top line moved in the right direction. The company raised $ 303 million that quarter and adjusted earnings of $ 1.04 per share on an adjusted basis. With a view to the fourth-quarter report, which appears at the end of February, the company is expected to show 92 cents per share in its earnings. In some additional positive measures, PDC produced a total of 192,000 barrels of oil equivalents per day in the third quarter, for a total of 17.7 million Boe. The company generated net cash from operations of $ 280 million and had a free cash flow of $ 225 million. During Q3, PDC was able to pay off $ 215 million in debt. Analyst Thomas Hughes, in his note on the stock for Wells Fargo, was impressed by the company’s free cash flow and potential for future production. ‘FCF generation will, according to our model, drive absolute debt to less than $ 1.5 billion by the end of the first quarter, which is an important figure because the returns of shareholders (repurchase first) are based on this performance … If debt falls below $ 1.5 billion, the company is likely to take a formal approach. in spreading FCF … While increased CO regulatory risk exists, PDCE has managed to build up a backlog of permits and DUCs for future development, ‘Hughes wrote. For this purpose, Hughes rates the stock overweight (ie buy), and its price target of $ 33 shows its confidence in a 30% lead for the next 12 months. (Click here to see Hughes’ record.) It’s not often that analysts all agree on a stock. So take note if this happens. The consensus rating of PDCE’s Strong Buy is based on unanimous ten purchases. The average price target of $ 27.90 indicates a 10% and a change in the current share price of $ 25.35. (See PDCE stock analysis on TipRanks) Visit TipRanks ‘best-selling stocks, a newly launched tool that combines all of TipRanks’ stock insights to find great ideas for stocks trading at attractive valuations. 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.