Top Wall Street firm Oppenheimer is out with a list of its Top 29 best equity ideas. Each of the firm’s analysts was asked to contribute one stock idea that they think could outperform over the next 12 months. This is based on both fundamentals and current market conditions.
From this list of 29 stock picks, we used TipRanks to select 10 stocks with a Strong Buy consensus from the Street. With the market so volatile right now this consensus rating provides reassurance that the Street as a whole has a bullish outlook on these stocks. At the same time, we take a deeper look into why the firm’s analysts- many of whom have a very high ranking on TipRanks– believe that these stocks represent the most compelling investment opportunities.
Here we look at the first five of these top stocks- for the second five (focusing on tech and industrial stocks) read our next blog post here.
1. UnitedHealthcare Group (NYSE:UNH)
UnitedHealth is best known as the U.S.’s largest health insurer, with over 45 million members. The company has also successfully expanded into the lucrative prescription market with its fast-growing Optum unit. Top 100 analyst Michael Wiederhorn singles out UNH as his favorite stock idea. He has a $276 price target (19% upside potential) on the stock. “UNH is well positioned by virtue of its diversification, strong track record, elite management team and exposure to certain higher growth businesses.”
So far, Wiederhorn has recorded an extremely impressive 95% success rate and 28.5% average return on his UNH ratings specifically. Bear in mind that the rest of the Street is equally as optimistic on UNH’s outlook. Indeed with 8 recent buy ratings and 19% upside potential, UNH is a top stock to track right now. You can click on the screenshot below for further insights into UNH.
2. Exelixis (NASDAQ:EXEL)
If you are looking for big upside potential, you are in the right place. The Street is predicting 59% upside for this up-and-coming biotech. EXEL specializes in small molecule therapeutics for the treatment of certain types of cancer. Top analyst Leah R Cann has a $40 price target on Exelixis (85% upside potential). She notes that EXEL just crushed Q1 2018 earnings results. For example, Cabometyx sales of $128.9 million came in over 20% higher than consensus. Cann concludes “based on Cabometyx demand increases and the strong start to the frontline RCC launch, we are increasing our sales estimate for 2018 by 16.8% to $510.5 million.”
3. Global Blood Therapeutics (NASDAQ:GBT)
Here we have a second very promising biotech stock. GBT specializes in sickle cell disease- an inherited blood disorder caused by a genetic mutation. “We rate GBT Outperform based on our optimism that the company’s Phase 3 asset, GBT440, could find regulatory and commercial success in sickle cell disease (SCD) and may substantially improve the standard of care in this indication” explains top analyst Mark Breidenbach. Most encouragingly, his $74 price target on shares translates into 52% upside potential.
4. Costco (NASDAQ:COST)
Turning from healthcare to consumer stocks we have member-only retail chain Costco. “Costco has for a long while represented one of the world’s best-run and most powerful retail chains” cheers top-rated Oppenheimer analyst Brian Nagel. As a result, he highlights COST as a top pick for the year (without a price target). Most notably, sales growth is improving, fundamentals are solidifying, and COST can invest proceeds from the lower tax rate ‘to further solidify its competitive positioning.’ So full steam ahead. Overall, 8 out of 9 analysts have a buy rating on COST right now. Their average price target of $209 indicates 8% upside potential.
5. Restaurant Brands International (NYSE:QSR)
To conclude Part I of our list we have fast-food mega chain QSR. Five-star analyst Brian Bittner sees 35% upside potential for the owner of Burger King, Tim Hortons (TH) and New Orleans style restaurant Popeyes (PLK). According to Bittner, the risk/reward of the stock is ‘very attractive’ right now. “We’d be aggressive buyers of QSR following 1Q18 results. The main fear-factor of TH weakness appears controlled in the near term, and mgmt unveiled bold plans to improve business trends moving forward.” As for the other chains, BK remains on strong footing, and PLK “appears set to shift into a much higher growth gear globally”.
His message matches that of the Street. Seven out of nine analysts are bullish on QSR right now. Their average price target of $69 suggests 24% upside potential.
Find the ‘Strong Buy’ stocks that match your investing strategy
Here we focused in on stock picks from just one firm. However, you can use the Analysts’ Top Stocks tool to find your own stocks. This is the perfect tool for investors who want to find fresh investment ideas based on top analyst buy ratings.
Top recommended stocks factor in ratings made by analysts with the highest average return and success rate to give you confidence in your investment decisions. Plus you can order the results by upside potential for immediate insights into stocks with a strong growth outlook.