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Analysts say these 3 stocks are their top picks for 2021
The year is drawing to a close, and it’s time for Wall Street analysts to start flagging their top picks for the year ahead. It’s a centuries-old tradition, in most fields, to take a sometimes ironic look at what lies ahead and begin to give advice on the slogan of a metaphorical crystal ball. carefully, examining its past and current performance, its trends over a variety of time frames, management’s plans – analysts take it all into account. Their recommendations provide valuable direction for building a resilient portfolio in the New Year. As usual, TipRanks has collected and collated the data on the best choices, and made it available to investors. Stock choices and their data make interesting choices. Let’s take a closer look. UTZ Brands (UTZ) UTZ Brands is a familiar brand in the eastern United States. The company is known for its range of snack foods, which are more salty than sweet. The company’s line of foods, including pretzels, chips, snack mixes and popcorn, are a frequent choice at vending machines. In August, UTZ (then known as Utz Quality Foods) entered into a business combination agreement with Collier Creek, a special purpose acquisition company. This combination brought the venerable snack company into the realm of public commerce. More recently, UTZ posted strong third quarter results and announced that it had entered into an agreement to purchase competing snack company Truco. Quarterly results were first released on November 5, showing net sales of $ 248 million, a 24% year-over-year gain, as well as a 23% gain. year-on-year gross margin. A week later, UTZ and Truco announced a $ 480 million acquisition agreement, which will introduce the “ On the Border ” brand of tortilla chips and salsas into the UTZ product line. Oppenheimer is 5-star analyst Rupesh Parikh, who sees a clear path for the company. “[Following] the company’s announcement on 12/11 to acquire Truco Enterprises, [we] overall, we view the economics of the transaction very favorably, the synergy opportunity, the influence of the attractive tortilla category including ancillary products (salsa and queso), and the compelling growth prospects for the brand, ”Parikh said. at least 3-4% organic sales growth and 6-8% EBITDA growth with an option to upward strategic acquisitions “, concluded the analyst. To this end, UTZ remains Parikh’s first choice for small-cap foods. Analyst rates the stock as an outperformance Buy) with a price target of $ 24. That figure implies a 28% rise from current levels. (To look at Parikh’s track record, click here) Overall, Wall Street loves this stock, earning it an excellent consensus analyst rating – Strong Buy.of 7 analysts followed by TipRanks in the past 3 months, 6 are bullish on UTZ, while only one remains on the sidelines.With a potential return of around 16%, the stock’s consensus target price stands at $ 21.71 (see UTZ stock analysis on TipRanks) RingCentr al , Inc. (RNG) From savory snacks, we’re moving to telecommunications technology RingCentral e is a cloud-based business communications company. The company’s products are software platform packages that combine telephone and computer systems. The flagship product platform, RingCentral Office, enables the communication system to be compatible with other popular business applications, including DropBox, Google Docs, Outlook, and Salesforce. RNG also offers unique features needed by communications systems: call forwarding, phone extensions, video calls and screen sharing. Much of the modern business world is about problem solving, and RingCentral does it for its customers – and the results are clear around the world. income and stock market performance. Revenue increased through 2020, with third-quarter revenue of $ 303 million for a sequential gain of 9.3%. Stocks have easily recovered from the midwinter COVID faint, and the stock is trading up to 76% so far this year. On the negative side, RingCentral is operating at a net loss, and this net loss was accentuated even as revenues increased and the stock appreciated. The third quarter EPS loss was 24 cents. James Fish, 5-star analyst at Piper Sandler, wrote the review on RNG, and he’s optimistic about the company’s future. “RingCentral is gaining new customers and growing with the existing one given its ability to converge across the communications software stack, including with the contact center… we continue to recommend RingCentral as one of our core 4 ”in our cover and a name to own for the next few years,” Fish commented. As a result, Fish reiterates RNG as his first choice. The analyst assigns the stock an overweight (i.e. buy) with a price target of $ 362. At current levels, this indicates a possible increase of 21% for the coming year. (To look at Fish’s track record, click here) Overall, RingCentral has 10 recent reviews, including 9 buy and 1 hold, making the analyst consensus opinion a strong buy. The average price target is $ 337.22, which suggests a 13% rise from the current price of $ 297.79. (See RNG stock market analysis on TipRanks) DraftKings, Inc. (DKNG) The world of fantasy sports is helping bring fans into gaming, and now that the professional leagues have taken over the game – albeit for shortened seasons, for example respect for the coronavirus – DraftKings, who use the fantastic leagues online, have made some gains. In addition to the creation of the fantasy league, DraftKings offers sports betting, and the company’s online model fits well with the social distancing restrictions put in place to combat the current virus health crisis. quarter, the results of which were reported earlier this month, DraftKings had a lot of good news. Revenue, at $ 133 million, beat forecast by $ 1 million, and the net loss per share was not as deep as analysts had feared. The company reported a key metric – monthly unique players – surpassing 1 million, a milestone. Going forward, DraftKings revised its forecast for fiscal 2020 upward from 5.7% in the middle of the range to $ 540 million to $ 560 million. The midpoint of the revenue forecast for 2021 is even more bullish, at $ 800 million. As noted, those gains come as the major sports leagues have returned to the game. But that’s not the only key here. DraftKings operates in 19 states plus DC – the jurisdictions that allow legal online sports betting. But eight other states are in various stages of legalizing DraftKings’ niche, and the company is eager to expand its operations. Summarizing the outlook for DraftKings, Bernie McTernan, analyst at Rosenblatt, writes: “[DKNG] remains a top choice in our Consumer Tech coverage. The third quarter results will continue the positive revisions to the revenue estimates given the better than expected for the “20E and” 21E guide. We are in the high end of the 21E range, which we believe is achievable given our expectations for bringing at least MI and VA online. The analyst added, “New state launches will put pressure on the WO in the short term. EBITDA, but encouragingly the company indicates that NJ, their most mature market, is in a similar place where they had previously hoped it would be for its increased profitability. McTernan values DKNG a Buy, and his price target of $ 65 implies a solid 41% -year upside. (To look at McTernan’s track record, click here) In total, there are 19 reviews recorded for DraftKings, including 13 buys and 6 takes, giving the stock a moderate buy rating by analyst consensus. The shares are currently priced at $ 46.24 and have an average price target of $ 59, which represents upside potential for the coming year of 38%. (See DKNG Stock Analysis on TipRanks) To get great ideas for stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. 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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