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TipRanks
3 monster growth stocks that are still in the buy zone
With markets generally rising for now (the S&P is up more than 9% in the past 30 days), investors are keeping a close eye on growing stocks. These are the stocks that show long-term appreciation, with returns for investors based primarily on stock price gains. It’s an obvious move, when the mood on the street is upbeat. The body of professional analysts understands this, and they have been searching the market for stocks that show signs of strong growth in the future. These aren’t necessarily the big names, but they are likely to bring the returns that make the investment profitable. By entering the TipRanks database, we have obtained the statistics of three of those actions. All have doubled or more so far this year, have Buy ratings and show double-digit upside potential, according to Wall Street analysts.Open Lending Corporation (LPRO) Americans love their cars, but the financial sector It is the real engine of car sales. increase. Loan financing makes it possible for most people to maximize their buying potential, and Texas-based Open Lending has occupied that lending niche for the past 20 years. The company offers loan analysis, automated decision-making, risk modeling, and risk-based pricing for auto lenders. Open Lending went public on NASDAQ last summer, through a deal with Nebula Acquisition Corporation. Since LPRO went public on the markets, the stock’s value has risen by an impressive 156%. The increase comes as revenue increased from $ 22 million in the second quarter to $ 29 million in the third quarter, a gain of 31%. Open Lending boosts its revenue gains by targeting a new group of clients in the auto loan industry: near-prime clients, who are relatively low risk based on data analysis, but do not qualify for prime-rate loan products. Open Lending helps finance companies locate these customers and offer them better rates than they have historically received. It’s a bold move in the auto loan industry, and judging from the revenue gains, it appears to be paying off. Canaccord’s five-star analyst Joseph Vafi is impressed by Open Lending’s debut in the market and its business model. “In this analyst’s experience, it is rare to see a new entrant to the FinTech market capable of capture only a few new customers and potentially accelerate their business model so much and so fast, “Vafi said.” The real story here is the look to the future and the potential for ‘exceptional’ acceleration of profit and loss heading into 2021/2022 This view is supported by material progress with customers from the automotive OEM financial arm. ”Looking at the model, Vafi goes on to say,“ The Open Lending value proposition expands well beyond the mitigation of underwriting risk to expand balance sheet capacity for lenders Given our view that the company’s product launch is still in its infancy relative to a fairly large TAM e large, we believe LPRO is capable of delivering EBITDA growth and profitability at the upper end of the FinTech peer group over the medium term. ” In his bullish comment, Vafi rates LPRO shares by buy and sets a price target of $ 35. This implies a potential upside of 28% for the next 12 months. (To view Vafi’s history, click here) Overall, Wall Street agrees with Vafi on this case. The stock has 9 recent reviews, divided into 8 buys and 1 hold, making the analyst consensus here a strong buy. The average price target is $ 33.11, which is a 21% increase in one year. (See LPRO’s Stock Analysis on TipRanks) AdaptHealth (AHCO) Advancement in technology has enabled many chronic care patients to stay at home, using medical devices and equipment to maintain their normal lives, in their own homes. It is one of the best characteristics that the medical system has developed in recent decades and has possibly had one of the most positive impacts on people’s quality of life. AdaptHealth is a medical equipment provider that offers patients a variety of home equipment through a nationwide network of providers. Adaptive equipment includes mobility, nutrition, ventilation, wound care, and more, all designed to keep patients living at home. While the approach is billed as patient empowerment, home care also reduces costs for medical providers. AdaptHealth has seen an increase in revenue throughout 2020. The top line grew from $ 191 million in the first quarter to $ 232 million in the second quarter to $ 284 million in the third quarter – in total, an increase in revenue. 48% in the first nine months of the calendar year. Along with revenue gains, stocks have performed admirably. AHCO’s shares are up 210% this year. AdaptHealth grows by expanding its provider network, and in recent months the company has made four acquisitions. The company closed deals with AeroCare, Solara Medical Supplies, ActivStyle and Pinnacle Medical Solutions, all providers of home health care equipment. Deutsche Bank analyst Pito Chickering likes AHCO, describing the company’s growth so far this year as “a massive outperformance relative to most healthcare stocks.” The analyst believes that “despite the superior performance to date, there is still a lot of potential for AHCO.” Go on, Chickering writes, “[We] We believe core organic growth of 8-10% will accumulate throughout the year, as well as a good balance sheet and free cash flows that would allow for additional deals. Ultimately, we think the multiples could expand into the home health range. “Overall, Chickering is rated Buy on AHCO stock, and its $ 47 price target is nearly 39% higher from current levels. (To view Chickering’s history, click here) Strong Buy analyst consensus on AHCO is unanimous, based on 7 recent Buy reviews. Shares are selling at $ 33.79, and the average price target of $ 40.93 suggests room for 21% growth in 2021. (See AHCO stock analysis on TipRanks) (CWH) The last stock on our list is a camping supply company, specifically, a RV and related equipment retailer. Camping World Holdings owns the largest stake in that niche and has seen its business grow during the coronavirus crisis: RVing is a viable and socially distant and coherent mode of leisure in these times. The company network , more than 200 retail outlets, is distributed in 36 states. CWH has seen consistent growth in both revenue and results during this pandemic year. ere $ 1.03 billion in the first quarter; reached $ 1.68 billion in the third quarter. Earnings, which showed a loss of 11 cents in the first quarter, soared to an impressive $ 1.44 a share in the third. The value of the shares has reflected the gains. While the company saw a dip in the first quarter, during the mid-winter market crash when the coronavirus triggered economic shutdowns, stocks have recovered more than fully. CWH’s shares are trading up 111% so far this year. Covering these stocks for JPMorgan, analyst Ryan Brinkman says: “[S]The tailwinds of structural demand relative to consumers seeking to travel in such a way as to avoid the contraction of COVID-19 appear to continue to far outpace the cyclical headwinds that impact demand in many other end markets. This growing demand, coupled with the improved execution of the company that resulted in an extraordinary EBITDA performance in 2Q, appeases previous concerns regarding execution and leverage. Brinkman’s $ 45 price target for CWH suggests 50% growth in the coming year, and supports his) rating. (To view Brinkman’s history, click here) Overall, the analyst reviews split almost evenly (2 Buy and 3 Hold) make the consensus view here a Moderate Buy. CWH shares are priced at $ 30.10 and have an average target price of $ 38.40, which implies a potential upside of 28% for the next 12 months. (See CWH’s stock analysis on TipRanks) To find good ideas for trading growth stocks with attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool that brings together all TipRanks stock insights. only 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.
