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TipRanks
3 Monster Growth Stocks That Are Still Undervalued
Let’s talk about growth. With the crown retreating, politics less and less exciting, and a new year ahead, investors are getting bullish – and that means there’s a hunt for stocks that will bring solid returns. In other words, growth stocks. In a recent interview, Jan Hatzius, chief economist at investment giant Goldman Sachs, said he sees 2Q21 GDP growth reaching 10%. In an environment like this, most stocks will show an upward trend. Now, we all know that past performance will not guarantee future results. Still, the best place to start looking for the high growth stocks of tomorrow is among yesterday’s winners. With this in mind, we have worked to find stocks that qualify as growth stimulators on Wall Street. Using the TipRanks database, we picked out three names backed by analysts who have already posted impressive gains and who boast strong long-term growth stories. Kaleyra (KLR) We’ll start with Kaleyra, a cloud computing company providing communication solutions. The company’s SaaS platform supports SMS, voice calls and chatbots – a product with obvious applications and added value in today’s office climate, with a strong push towards telecommuting and remote work. Kaleyra has over 3,500 customers, who made 3 billion voice calls and sent 27 billion texts in 2019 (the latest year with full numbers available). Over the past 6 months, KLR shares have shown remarkable growth, appreciating 155%. Kaleyra’s earnings increased with the value of the share. The company’s 3Q20 results reached $ 38.3 million, the best since KLR’s IPO. While Kaleyra still suffers a loss in net income each quarter, third quarter EPS was the smallest such loss in the past four quarters. Maxim analyst Allen Klee is bullish on KLR, seeing recent growth and product offerings as an indicator of future performance. “Over the past few years, Kaleyra has achieved double-digit revenue growth and positive Adjusted EBITDA. We forecast revenue growth of 9%, 22% and 28% for 2020-2022. We expect adjusted EBITDA declines in 2020 to reflect public company costs and COVID-19, but more than double the revenue rate growth for the next two years. We expect the benefits of operating leverage, low cost technical employees, cost volume discounts as the business grows, and improved margins from new offerings and geographies. . Longer term, we believe the company can increase revenue by almost 30% with even faster earnings growth, ”said Klee. With such growth, it’s no wonder Klee is taking an upbeat stance on KLR. To kick off its cover, the analyst released a buy note and set a price target of $ 22. This figure implies a rate of 45% for the coming year. (To see Klee’s history, click here) Overall, based on the 3 buy vs. no hold or sell ratings awarded in the past three months, Wall Street analysts agree that this “buy strong ”is a solid bet. It also doesn’t detract from the fact that its average price target of $ 19 implies upside potential of around 26%. (See KLR stock market analysis on TipRanks) Vista Outdoor (VSTO) Next up, Vista Outdoor, is a venerable company that has seen its niche become more attractive in recent times. Vista is a sporting goods company, with 40 brands in two main divisions: Outdoor Products and Shooting Sports. Vista brands include well known names like Bushnell Golf, CamelBak and Remington. The company has found a success in the “corona year” as people have increasingly turned to outdoor activities that can be enjoyed solo or in small groups – thus expanding the customer base. VSTO shares have thus risen by 214% over the past 12 months. Vista’s profits reflect growing consumer interest in outdoor sports. The company’s EPS increased in 2020 from a net loss to earnings per share of $ 1.34 in the second quarter tax report (released in November). The third quarter tax report, released earlier this month, showed lower earnings, at $ 1.31 per share, but was still viewed as strong by the company, as it covered the winter months when the company normally sees a drop in income. Both quarters showed strong gains in earnings per share year over year. Covering Vista for B. Riley, 5-star analyst Eric Wold sees several avenues for continued Vista growth. He is impressed with the growth in sales of firearms and ammunition, as well as the increase in product prices in both the outdoor articles and the shooting sports divisions. “As we anticipate that the increase in the number of industry participation for outdoor products and shooting sports during the pandemic will represent additional tailwind for VSTO in the years to come beyond the impressive production visibility that has been created by the depletion of channel inventory levels, we continue to set an attractive setup for benchmark growth, ”commented Wold. Overall, Wold is bullish on the stock and rates it as a buy, with a price target of $ 41. This figure indicates a margin of increase of 27% in the coming year. (To see Wold’s track record, click here) Vista is another company with a unanimous Strong Buy consensus rating. This rating is based on 9 recent reviews, all available for purchase. VSTO shares have an average price target of $ 36.78, which is a 14% rise from the trade price of $ 32.15. (See VSTO’s inventory analysis on TipRanks) Textainer Group Holdings (TGH) You might not think of the ubiquitous freight container, but these deceptively simple metal boxes have changed the face of bulk shipping ever since. their proliferation in the 1960s. These containers facilitate the organization, loading, shipping and tracking of large quantities of goods and are particularly valuable for their ease of change; containers can be quickly loaded or switched between ships, trains and trucks. Textainer is a billion dollar company that buys, owns and leases shipping containers for the freight industry. The company has more than 250 customers and has a fleet of 3 million twenty foot equivalents (TEU). Textainer is also a major reseller of used containers, and operates from 500 depots around the world. Even during the corona pandemic, when international routes and business models were severely disrupted and quarterly revenues declined year over year, Textainer saw share gains. The company’s shares have climbed 110% in the past 12 months. Most of those gains have come in the past six months, as economies – and business models – have started to reopen. Looking at Textainer for B. Riley, analyst Daniel Day is deeply impressed. He considers this company to be the cheapest of its peer group, with a strong market share in a competitive industry. Day values TGH at Buy, and his price target of $ 31 suggests he has a 57% growth margin ahead of him. In support of this bullish stance, Day writes, in part, “We believe TGH is an under-followed and misunderstood name, ideal for the portfolio of a high-value investor looking for cash-flow-generating securities to be. trading at a steep discount to intrinsic value. . With the prices of new containers hitting record highs for several years in a context of resurgent container transport, we expect the next results to be positive catalytic events for TGH… ”Some stocks are going under the radar, and TGH is one of them. Day’s is the company’s only recent analyst review, and it’s decidedly positive. (See TGH Stock Analysis on TipRanks) To find great ideas for growth stocks that trade at attractive valuations, visit TipRanks Best Stocks To Buy, a newly launched tool that brings together all the information about shares of TipRanks. 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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