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TipRanks
3 “Strong Buy” Actions Established for Huge Growth in 2021
We’ve turned a new page on the calendar, Old Man ’20 is out of the gate, and there’s a feeling that ’21 will be a good year, and so far, all is well. Markets closed 2020 with modest session gains to top off higher annual gains. The S&P 500 rose 16% during the year of the crown crisis, while the NASDAQ, with its high-tech representation, showed an impressive annual gain of almost 43%. The advent of two viable COVID vaccines is fueling a surge in general optimism. Top Wall Street analysts have been taking a look at the stock markets, finding those gems that investors should seriously consider in this new year. These are 5-star analysts from the TipRanks database, and they are pointing to stocks with Strong Buy ratings; In short, this is where investors can expect to find equity growth in the next 12 months. We are talking about returns of at least 70% over the next 12 months, according to analysts. ElectraMeccanica Vehicles (SOLO) Electric vehicles, EVs, are becoming more popular as consumers seek alternatives to the traditional internal combustion gasoline engine. While EVs simply move the combustion source from under the hood to the electric power plant, they offer real benefits for drivers: They offer greater acceleration, more torque and are more energy efficient, converting up to 60% of the energy from your battery. moving forward. These advantages, as electric vehicle technology improves, are beginning to outweigh the disadvantages of costly, shorter-range battery packs. EV built for the urban passenger market. Technically, the Solo is classified as an electric motorcycle, but it is fully enclosed, with a door on each side, has a trunk, air conditioning, and a Bluetooth connection, and travels up to 100 miles on a single charge at speeds of up to 80 miles. per hour. The recharge time is low, less than 3 hours, and the vehicle is priced at less than $ 20,000. Beginning in the third quarter of 2020, the company delivered its first shipment of vehicles to the US and expanded to six additional US urban markets, including San Diego. , CA and Scottsdale and Glendale, AZ. ElectraMeccanica also opened four new storefronts in the US: 2 in Los Angeles, one in Scottsdale and one in Portland, Oregon. Additionally, the company has begun designing and marketing a fleet version of Solo, to target the commercial fleet and rental car markets beginning in the first half of this year. Craig Irwin, 5-Star Analyst at Roth Capital, is impressed by possible applications of SOLO to the fleet market. He writes of this opening, “We believe the pandemic is a tailwind for fast food chains exploring better delivery options. The chains seek to avoid third-party delivery costs and balance the brand identity implications of the operator’s vehicles versus those of the company. The 100-mile range, low operating cost, and standard telematics of the SOLO make the vehicle a good fit, in our opinion, particularly when location data can be integrated into a chain’s kitchen software. We wouldn’t be surprised if they ONLY made a couple of announcements with the major networks after customers validated the plans. ” Irwin places a Buy rating at SOLO, supported by its $ 12.25 price target implying 98% upside potential for the stock in 2021. (See Irwin’s History, click here) Speculative technology is popular on Wall Street , and ElectraMeccanica fits very well into that project. The company has 3 recent reviews, and they are all Buys, making the analyst consensus a unanimous Strong Buy. The stock is priced at $ 6.19 and has an average target of $ 9.58, making the one-year gain 55%. (See SOLO’s stock analysis on TipRanks) Nautilus Group (NLS) Headquartered in Washington state, this gym equipment maker has seen a massive stock gain in 2020 as its shares soared by more than 900 % over the course of the year, even representing recent declines in stock value. Nautilus won when social lockdown policies took hold and gyms closed in the name of stopping or slowing the spread of COVID-19. The company, which owns top home fitness brands such as Bowflex, Schwinn and the eponymous Nautilus, provided home fitness enthusiasts with the equipment they need to stay in shape. due to the ‘crown recession’. In the second quarter, the top line reached $ 114 million, up 22% sequentially; In the third quarter, revenue reached $ 155, for a sequential gain of 35% and a massive gain of 151% year-over-year. Earnings were just as strong, with the EPS gain of $ 1.04 from the third quarter topping the 30-cent loss from the prior-year quarter. Watching this action for Lake Street Capital is 5-star analyst Mark Smith, who is bullish on this action. Smith is especially aware of the recent drop in stock price, noting that the stocks are now off their peak, making them attractive to investors. “Nautilus reported extraordinary results for Q3: 20 with solidity across its portfolio … We believe the company has orders and backlog to drive high sales and earnings for the next few quarters and we believe we have seen a fundamental change in the fiscal year. consumers at home behavior. We would see the recent pullback as a buying opportunity, “Smith said. Smith’s $ 40 price target supports his Buy rating and indicates a solid one-year upside potential of 120%. (To view Smith’s track record, click here) Strong Buy’s unanimous consensus rating shows that Wall Street agrees with Smith on Nautilus’ potential. The stock has 4 recent reviews, and all are for Buy. The stock closed 2020 priced at $ 18.14, and the median target of $ 30.25 suggests that the shares have room for upside growth of ~ 67% in 2021 (see NLS stock analysis on TipRanks) KAR Auction Services (KAR) Last but not least, KAR Auction Services, an auto auction company that operates physical and online marketplaces to connect buyers and sellers. KAR sells to both commercial buyers and individual consumers, offering vehicles for a variety of uses: commercial fleets, private tours, and even the second-hand aftermarket. In 2019, the latest year for which full-year figures are available, KAR sold 3.7 million vehicles for $ 2.8 billion in total auction revenue. The current crisis of the crown, with its policies of social blockade, curbed car travel and reduced the demand for used vehicles. vehicles in all market segments. KAR shares fell 13% in 2020, in a year of volatile trading. In the recent 3Q20 report, the company posted revenues of $ 593.6 million, down 15% year-over-year. However, third-quarter earnings of 23 cents a share declined less, 11% year-over-year, and showed a strong sequential recovery from the second quarter EPS loss of 25 cents, as new vaccines promise the end of the COVID pandemic later this year. With the lifting of the lockdown and local travel restrictions, the medium and long-term outlook for the second-hand car market and for KAR auctions are encouraging, according to Truist analyst Stephanie Benjamin. The 5-star analyst noted: “Our estimates now assume that the volume recovery occurs in 2021 versus 4Q20 based on our previous estimates … Overall, we believe that the 3Q results reflect that KAR is executing well the initiatives under its control, specifically improving its cost structure and transforming itself to a pure digital auction model. Looking ahead, he adds, “… auto loan and lease delinquencies and defaults have increased and we believe they will serve as a significant tailwind in 2021 as repo activity resumes. Additionally, repo vehicles generally require ancillary services that should generate a higher RPU. This influx of supply should also help moderate the used pricing environment and drive dealers to fill their lots, which remain at three-year lows from an inventory standpoint. ” In line with these comments, Benjamin sets a price target of $ 32, implying a high 71% upside potential in one year for the stock and rates KAR as Buy. (To see Benjamin’s track record, click here) Wall Street is generally willing to speculate on the future of KAR, as indicated by recent reviews, which divide Buy to Hold 5 to 1, and make the analyst consensus consider a Buy strong. KAR is selling at $ 18.61 and its average price target of $ 24.60 suggests it has room to grow 32% from that level. (See KAR’s stock analysis on TipRanks) To find good ideas for trading stocks with attractive valuations, visit TipRanks’s Best Stocks to Buy, a recently launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of prominent 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.
