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3 “Strong Buy” actions for Monster Growth in 2021
We’ve turned a new page on the calendar, Old Man 20 is upon the door, and there is a feeling that 21 will be a good year – and so far so good. Markets closed 2020 with modest session gains to cap larger annual gains. The S&P 500 rose 16% during the year of the corona crisis, while the NASDAQ, with its strong technological representation, posted an impressive annual gain of almost 43%. The advent of two viable COVID vaccines is fueling a surge of general optimism. Top Wall Street analysts have taken a peek at the stock markets, finding these gems investors should seriously consider in this new year. These are analysts with 5-star ratings from the TipRanks database, and they highlight stocks with Strong Buy ratings – in short, this is where investors can expect to find growth in stocks over the years. Next 12 months. We’re talking about returns of at least 70% over the next 12 months, analysts say. ElectraMeccanica Vehicles (SOLO) Electric vehicles, EVs, are increasingly 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 powerhouse, they offer real benefits for drivers: they offer greater acceleration, more torque, and they are more fuel efficient, converting up to 60 % of their battery power. moving forward. These advantages, as EV technology improves, begin to outweigh the disadvantages of shorter runtime and expensive battery packs. ElectraMeccanica, a small-cap manufacturer from British Columbia, is the designer. and the distributor of the Solo, a three-wheeled single-seater EV built for the urban commuter market. Technically, the Solo is classified as an electric motorcycle – but it’s fully enclosed, with a door on either side, has a trunk, air conditioning, and Bluetooth connection, and covers up to 100 miles in a single. charge at speeds of up to 80 miles per hour. Charging time is low, less than 3 hours, and the price of the vehicle is under $ 20,000. As of Q3 2020, the company has delivered its first delivery of vehicles to the United States and has expanded to six other US urban markets, including San Diego. , CA and Scottsdale and Glendale, AZ. ElectraMeccanica also opened four new storefronts in the United States – 2 in Los Angeles, one in Scottsdale and one in Portland, OR. In addition, the company has begun design and marketing work on a fleet version of the Solo, to target the commercial fleet and rental car markets from the first half of this year.Craig Irwin, Analyst 5 stars at Roth Capital, is impressed with SOLO’s possible applications in the fleet market. He writes of the opening: “We believe the pandemic is a positive wind for fast food chains exploring better delivery options. Chains seek to avoid third-party delivery costs and balance the brand identity implications of operator and company-owned vehicles. The SOLO’s 100 mile range, low cost of ownership, and standard telematics make the vehicle a good fit, in our opinion, especially when location data can be incorporated into a chain’s kitchen software. We wouldn’t be surprised if SOLO made some announcements with the big chains after customers had validated the plans. Irwin gives SOLO a buy rating, bolstered by its price target of $ 12.25, implying a 98% upside potential for the stock in 2021. (Watch out for Irwin’s track record, click here) Speculative technology is popular on Wall Street, and ElectraMeccanica fits that bill well. The company has 3 recent reviews, and all of them are buy, making analyst consensus a strong unanimous buy. The shares are priced at $ 6.19 and have an average target of $ 9.58, which is a one-year increase of 55%. (See SOLO market analysis on TipRanks) Nautilus Group (NLS) Based in Washington state, this fitness equipment maker saw a massive inventory gain in 2020, with its shares climbing more than 900% in during the year, even representing recent declines in stock values. Nautilus won as social lockdown policies took hold and gyms were closed in the name of stopping or slowing the spread of COVID-19. The company, which owns major home fitness brands such as Bowflex, Schwinn and the eponymous Nautilus, has provided home fitness enthusiasts with the equipment they need to stay in shape. due to the “corona recession”. In the second quarter, sales reached $ 114 million, up 22% sequentially; in Q3, revenues reached $ 155, for a sequential gain of 35% and a massive gain of 151% year over year. Profits were equally strong, with Q3 earnings of $ 1.04 EPS of $ 1.04 far exceeding the 30-cent loss in the prior year quarter. Watch this title for Lake Street Capital, 5-star analyst Mark Smith, who is bullish on the title. Smith is particularly aware of the recent drop in the share price, noting that the stock is now off its peak – making it attractive to investors. “Nautilus reported explosive third quarter results: 20 with strength across its portfolio… We believe the company has orders and a backlog to generate high sales and profits for the next few quarters and we believe we have found a fundamental change in the exercise of home consumers. behaviour. We would view the recent pullback as a buying opportunity, ”said Smith. Smith’s $ 40 target supports his buy rating and indicates strong upside potential of 120% year on year. (To see Smith’s record, click here) The unanimous Strong Buy consensus rating shows Wall Street agrees with Smith on Nautilus’ potential. The stock has 4 recent reviews, and all are for purchase. The shares closed 2020 with a price of $ 18.14, and the average target of $ 30.25 suggests the stock has room for upward growth of around 67% in 2021. (See (NLS Stock Analysis on TipRanks) KAR Auction Services (KAR) Last but not least is KAR Auction Services, a car auction company, which operates online and physical marketplaces to connect buyers and sellers. KAR sells to both professional buyers and individuals, offering vehicles for a variety of uses: commercial fleets, private travel, even the 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 ongoing corona crisis, with its lockdown policies social, reduced car travel and reduced demand for used vehicles. vehicles across market segments. KAR shares slipped 13% in 2020, in a volatile trading year. In the recent 3Q20 report, the company posted revenue of $ 593.6 million, down more than 15% year-over-year. However, third-quarter profit, at 23 cents per share, fell less than 11% year-on-year and showed a strong sequential recovery from the 25-cent loss in BPA in the second quarter, as newer vaccines promise the end of the COVID pandemic later this year, and the lifting of the lockout and local travel restrictions, the medium to long-term outlook for the used car market and KAR Auctions is improving, according to the ‘Truist analyst Stephanie Benjamin. The 5-star analyst noted, “Our estimates now assume that the volume recovery occurs in 2021 from 4Q20 based on our previous estimates … Overall, we believe the Q3 results reflect that KAR is performing. the initiatives under its control, in particular by improving its cost structure and transforming itself into a pure digital auction model. Looking further, she adds, “… delinquencies and defaults for auto loans and leases have increased and we believe they will be a significant tailwind in 2021 as the business continues. pension resumes. In addition, pension vehicles generally require ancillary services which should generate a higher SPS. This influx of supply should also help moderate the pricing environment used and encourage dealers to fill their lots, which remain at their lowest level for three years from an inventory point of view. Consistent with those comments, Benjamin sets a price target of $ 32, which implies a potential 71% year-on-year rise in the stock and rates KAR as a buy. (To look at 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 agree with the consensus of analysts a strong buy. KAR is selling for $ 18.61 and its average price target of $ 24.60 suggests it has room to grow 32% from this level. (See KAR Stock Analysis on TipRanks) To find great ideas for trading stocks at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks .Disclaimer: The opinions expressed in this article are solely those of the featured 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.
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