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TipRanks
3 “strong buy” stocks that are still undervalued
After a year that most of us want to forget, 2021 is shaping up to start with stability and stability. Elections are safe behind us, the new Biden Administration promises a ‘no drama’ approach, a tightly divided and hyperpartisan Congress is unlikely to enact radical legislation, reform or otherwise, and COVID vaccines are ready to go. its distribution. It’s a recipe for a quiet news cycle, making it a perfect time to buy the stock market. Investors can read the tea leaves or study the data, whatever their preferred mode of analyzing stocks, and use this lull to make rational decisions about stock movements. Using the TipRanks database, we have obtained three stocks that present a bullish case. All three fulfill a profile that should interest value investors. They have unanimous Strong Buy consensus ratings, along with a ‘perfect 10′ from the Smart Score. That score, a unique measure, assesses a stock based on 8 factors with a proven high correlation with future over performance. A score of ’10’ indicates a high probability that the stock will rise next year. And finally, these three stocks are coming with double digit bullish potentials, indicating that they are still undervalued.UMH Properties (UMH) We will start in the real estate investment trust (REIT) sector, with UMH Properties. This company, which started after World War II in the mobile home industry, later became the leading manufacturer of manufactured homes. Today, UMH owns and manages a portfolio of 124 manufactured home communities, spread across 8 Northeast and Midwest states, totaling more than 23,000 units. As a REIT, UMH has benefited from the nature of manufactured homes as affordable options in the housing market. UMH sells the manufactured homes to residents, rents the parcels on which the properties are located, and rents the homes to residents. The company’s same-property revenue, a key metric, showed an 8.6% year-on-year increase in the third quarter. Also in the third quarter, UMH reported a 16% year-on-year increase in top-line revenue, showing $ 43.1 million compared to $ 37.3 million. in the quarter of the previous year. Funds from operations, another key metric in the REIT sector, reached 11 cents per share, down from 14 cents in 3Q19. The decline came as the company redeemed $ 2.9 million in Series B preferred shares. REITs are required to return income to shareholders, and UMH achieves this with a reliable dividend and a high yield of 4.7%. The payment, at 18 cents per common share, is paid quarterly and has been stable for more than a decade. Pass Point analyst Merrill Ross believes the company is in a strong position to create value for both households and shareholders. “We believe UMH has shown that it can deliver attractive and affordable housing to renters or homeowners more efficient than has been possible with vertical rental housing. As UMH improves the cost of funds, it can compete more effectively with other MH community owners in the public and private spheres, and because it has a successful formula to reverse poorly managed communities, we believe that UMH can consolidate private property in the coming years to harness its value-creating potential, “said Ross. To this end, Ross rates UMH as a Buy, and its $ 20 price target implies a 25% increase in one year. (To view Ross’s track record, click here) Overall, the unanimous Strong Buy on UMH is based on 5 recent reviews. The stock is selling at $ 15.92 and the average target price of $ 18.40 suggests it has room for 15% growth from that level. (See UMH stock analysis on TipRanks) Laird Superfood (LSF) Laird Superfood is a newcomer to the equities markets, and it went public last September. The company manufactures and markets a range of nutrient-dense, plant-based food and snack additives, and is best known for its line of specialty non-dairy creamers for coffee. Laird targets clients looking to add nutrition and an energy boost to their diet. Since its September IPO, the company has reported third-quarter earnings. Revenues were strong, at $ 7.6 million, beating forecast by more than 26% and 118% above the prior year figure. The company also reported 115% year-on-year growth in online sales. E-commerce now accounts for 49% of the company’s net sales, which is not surprising during the ‘crown year’. The stock review comes from Robert Burleson, a 5-star analyst at Canaccord. Burleson reiterates his bullish stance, saying: “We continue to view LSF as an attractive platform that plays on strong demand trends for plant-based functional foods, highlighting LSF’s competitive differentiated omnichannel approach and ingredient ethics. Over time, we hope that LSF can leverage its brand and vertically integrated operation to achieve success in a wide range of plant-based categories, driving massive top-line growth and healthy margin expansion. ” Burleson rates LSF shares with a Buy along with a $ 70 price target. This figure indicates your confidence in ~ 63% growth over the one-year horizon. (To see Burleson’s track record, click here) Laird hasn’t attracted much attention from analysts, but those who have reviewed the stock agree with Burleson’s assessment. LSF has a Unanimous Analyst Consensus Rating from Strong Buy, based on 3 recent reviews. The stock’s $ 62.33 median price target suggests room for a ~ 39% upside in the next year. (See LSF’s stock analysis on TipRanks) TravelCenters of America (TA) Last but not least is TravelCenters of America, a major name in the transportation industry. TravelCenters owns, operates, and franchises full-service highway rest stops in the US, a major niche in a country that relies heavily on long-distance trucking and in which private car ownership has long fostered the mystique of the ‘road trip’. TA’s network of rest stops offers travelers convenience stores and fast food restaurants, as well as gasoline and diesel fuel and the expected amenities. The crown crisis has been a difficult time for TA, as lockdown regulations hamper travel. The company’s revenue bottomed out in the second quarter, falling to $ 986 million, but increased 28% sequentially to hit $ 1.27 billion in the third quarter. EPS, at 61 cents, was also strong, showing an impressive 165% YoY growth. These gains came as the economy began to reopen, and with air travel still restricted, cars became the default choice for long distances, a circumstance that benefits TravelCenters. Covering TravelCenters for BTIG is analyst James Sullivan, who rates the stock as a Buy, and his $ 40 price target suggests a 22% increase over the next year. (To view Sullivan’s track record, click here) Supporting his position, Sullivan noted: “TA is in the process of moving from a series of failed initiatives under the previous management team. The current new management team has strengthened the balance sheet and intends to improve operations through cost cuts and revenue-generating measures that should boost margins. […] While we expect spending in 2020 to focus on non-revenue maintenance and repair items, we expect that in 2021 and beyond, higher spending will yield a good return on investment … ”Overall, TravelCenters shares get the unanimous approval, backed by 3 purchases. the stock’s Strong Buy consensus rating. The shares are selling for $ 32.87 and the average price target of $ 38.33 suggests upside potential of ~ 17%. (See TA’s stock analysis on TipRanks) To find good ideas for trading stocks with attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool that brings together all of TipRanks stock insights. those of leading analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
