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TipRanks
3 Monster Growth stocks that are still in the buy zone
With markets generally on the rise for now – the S&P has risen over 9% in the past 30 days – investors are taking a close look at growth stocks. These are stocks that show long-term appreciation, with returns to investors based primarily on stock price gains. It’s an obvious decision to make when the mood on the street is bullish. The body of professional analysts understands this and has scoured the market for stocks that are showing signs of strong growth ahead. They are not necessarily the big names, but they are likely to bring the returns that make the investment worthwhile. By diving into the TipRanks database, we pulled up statistics for three of these stocks. Wall Street analysts have all doubled or more so far this year, have buy ratings and show double-digit upside potential.Open Lending Corporation (LPRO) Americans love their cars – but the The financing industry is the real engine of auto sales. growth. Loan financing allows most people to maximize their buying potential, and Texas-based Open Lending has been in this lending niche for 20 years. The company offers loan analytics, automated decision-making, risk modeling and risk-based pricing for auto lenders. Open Lending went public on the NASDAQ last summer, thanks to an agreement with Nebula Acquisition Corporation. Since LPRO went public on the markets, the stock’s value has increased by 156%. This increase is due to the fact that revenues went from $ 22 million in Q2 to $ 29 million in Q3, a gain of 31%. Open Lending is maximizing revenue gains by targeting a new cohort of customers in the auto lending industry – near-privileged customers, who are relatively low risk according to the data analysis, but who are not eligible for lending products. prime rate loan. Open Lending helps finance companies locate these customers – and offer them better rates than they’ve always received. It’s a bold move in the auto loan business and, judging by the earnings gains, it seems to be paying off. Joseph Vafi, 5-Star Analyst at Canaccord, is impressed with Open Lending’s debut in the market and its business model. In this analyst’s experience, it is rare to see a new entrant in the FinTech market being able to gain only a few new clients and potentially accelerate their business model so much and so quickly, ”said Vafi. “The real story here is the forward-looking vision and the“ exceptional ”acceleration potential of the P&L by 2021/2022. This view is supported by significant progress with customers in the OEM auto finance industry. Examining the model, Vafi goes on to say, “The value proposition of Open Lending goes far beyond simply mitigating underwriting risk to expanding the balance sheet capacity of lenders themselves. Given that we believe the company’s product rollout is still in its early stages relative to a fairly large TAM, we consider LPRO capable of delivering high-end EBITDA growth and profitability in the market. medium-term FinTech peer group. His bullish commentary, Vafi rates LPRO shares at a buy and sets a price target of $ 35. This implies an upside potential of 28% for the next 12 months. (To see Vafi’s track record, click here) Overall, Wall Street agrees with Vafi on this one. The stock has 9 recent reviews, breaking down to 8 buy and 1 take, making the analyst consensus here a strong buy. The average price target is $ 33.11, which implies a 21% increase over one year. (See LPRO stock analysis on TipRanks) AdaptHealth (AHCO) Advances in technology have made it possible for many chronically ill patients to stay at home, using medical devices and equipment to support their regular lives – in their homes. clean house. This is one of the best features that the medical system has developed over the past decades, and has arguably had one of the most positive impacts on people’s quality of life. AdaptHealth is a provider of medical equipment, providing patients with a range of home equipment through a nationwide network of providers. Adaptive equipment includes mobility, nutrition, ventilation, wound care, and more, all designed to keep patients at home. While this approach is seen as empowering patients, home care also lowers costs for healthcare providers. AdaptHealth saw its revenue increase throughout 2020. Revenue increased by $ 191 million. from $ 232 million in Q1 to $ 232 million in Q2 to $ 284 million in Q3 – all in all, a 48% increase in revenue in the first nine months of the calendar year. Along with the earnings gains, the stock has performed admirably. Shares in AHCO are up 210% this year. AdaptHealth is growing by expanding its supplier network, and in recent months the company has made four acquisitions. The company has agreements on AeroCare, Solara Medical Supplies, ActivStyle, and Pinnacle Medical Solutions – all providers of home health care equipment. Deutsche Bank analyst Pito Chickering appreciates AHCO, describing the company’s growth since the start of the year as “a massive outperformance against most stocks in the healthcare sector.” The analyst believes that “despite the outperformance since the start of the year, there are still a lot of advantages for AHCO”. Chickering writes, “[We] believe that a basic 8-10% organic growth will consist throughout the year, along with a good balance sheet and free cash flow that would allow for additional transactions. Ultimately, we believe the multiples could expand into the home health product line. Overall, Chickering has a buy rating on AHCO shares, and its price target of $ 47 implies an increase of almost 39% from current levels. (To see Chickering’s history, click here). Strong Buy analyst consensus on AHCO is unanimous, based on 7 recent Buy reviews. Shares are selling for $ 33.79, and the average price target of $ 40.93 suggests a growth margin of 21% in 2021. (See AHCO Stock Analysis on TipRanks) Camping World Holdings (CWH) The last stock on our list is a camping supplies company, specifically a retailer of RVs and related equipment. Camping World Holdings holds the largest share of this niche and has seen its business expand during the coronavirus crisis – motorhome is a viable and socially coherent mode of leisure at that time. The company’s network, which includes more than 200 points sales force, is spread across 36 states. The CFS has grown steadily. consistent at both the top and bottom levels during this pandemic year. ere $ 1.03 billion in the first quarter; they reached $ 1.68 billion in the third quarter. Profits, which were down 11 cents in the first quarter, hit an impressive $ 1.44 per share in the third. The stock’s value reflected the earnings. While the company saw a decline in the first quarter, during the mid-winter stock market crash when the coronavirus caused economic shutdowns, the stock has more than fully recovered. CWH shares are now trading at 111% since the start of the year. Covering this action for JPMorgan, analyst Ryan Brinkman says: “[S]Favorable winds in structural demand relative to consumers looking to travel in a way that avoids the contraction of COVID-19 look set to continue to far outpace the cyclical headwinds that are affecting demand in many other end markets. This growing demand, coupled with the improvement in the company’s execution that resulted in a second quarter EBITDA performance, allays earlier concerns about execution and leverage. Brinkman’s $ 45 price target for CWH suggests 50% growth in the coming year and supports his overweighting) valuation. (To look at Brinkman’s track record, click here) Overall, the almost equally split analyst reviews – 2 Buy and 3 Hold – make the consensus view here a moderate buy. CWH shares are priced at $ 30.10 and have an average price target of $ 38.40, which implies a potential upside of 28% for the next 12 months. (See CWH Stock Market Analysis on TipRanks) For great ideas for growth stocks that trade at attractive valuations, check out the Best Stocks to Buy from TipRanks, a newly launched tool that brings together all the information about stocks from TipRanks. only those of 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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