These 3 stocks have the backing of TipRanks’ No. 1 Analyst in each sector
How to find fresh investing inspiration in these choppy times? Right now political uncertainty in Italy has sent global markets into a tailspin. However even in these conditions there are still compelling opportunities to be found. But first you need to know where to look and who to trust. That’s where TipRanks comes in. By tracking the latest ratings from over 4,700 Wall Street analysts we can specifically seek out recommendations from the best-performing analysts who get it right time and time again.
Here we turned to TipRanks’ Expert Center which reveals the Top 25 analysts overall, and in each market sector.
The ranking is based on their 1) success rate 2) average return per recommendation and 3) the statistical significance of these ratings. So using these insights, let’s take a closer look at the latest recommendations of these top-ranked analysts now:
Analog Devices (NASDAQ:ADI)
TipRanks No.1 tech analyst is B.Riley FBR’s Craig Ellis. We can immediately see his extremely impressive track record of 83% success rate and 39% average return per rating. So which are Ellis’ favorite stock picks? Clicking on his profile, we can see that Ellis has just reissued his buy rating on ADI, a ‘high-quality’ semiconductor manufacturer:
Indeed, his bullish $122 price target indicates upside potential of 29%. So far shares are up 6% since the start of the year, and 13% on a 1-year basis. “We believe high quality and secularly advantaged sales growth, well above peer margins, strong operating execution, and rapid debt pay-down progress warrants and above-peer multiple” cheers Ellis. So far this investment thesis seems to be working- note his 100% success rate on ADI stock specifically.
Today the company is releasing its fiscal Q218 earnings report. And the outlook is very positive. As Ellis says: “We expect strong operating execution and we believe fundamentals point to Street estimate upside in the quarter and outlook.” Most encouragingly, ADI peers have already reported beats and raises suggesting ‘healthy Auto and Industrial demand which is 65% of ADI sales.’
Plus if we take a step back, we can see that in the last three months, ADI has scored 10 consecutive buy ratings from top analysts. You can take a closer look at these ratings here. The conclusion: ADI is a stock that’s definitely worth keeping an eye on over the coming months.
Blueprint Medicine (NASDAQ:BPMC)
Selecting the ‘Healthcare’ filter on the Top Analysts page enables us to pinpoint Eric Schmidt from Cowen & Co as the No. 1 healthcare analyst right now. He is betting on the success of Blueprint Medicine, an intriguing oncology stock. The company develops highly selective kinase inhibitors for patients with genomically defined cancers.
He has just attended a meeting with BPMC management to discuss the company’s growing clinical portfolio. This includes the recent Phase I data release on BLU-667 in RET-driven tumors and the outlook for avapritinib in Systemic Mastocytosis (SM) and GIST. Post-meeting, Schmidt confirms that “we continue to view BPMC shares as a top smid cap holding and remain at Outperform.”
He believes that Blueprint Medicines has an ‘impressive pipeline’ of targeted kinase therapies. “With large opportunities in SM and GIST and a robust development engine, we continue to view shares as undervalued” writes Schmidt. He doesn’t give a price target for the stock, but we can get some idea of the stock’s growth potential from its TipRanks profile page.
As you can see below, based on 5 recent buy ratings, the $107 average analyst price target indicates big upside potential of 30%. Bear in mind that this is a stock on the rise: over the last year share prices have more than doubled from under $40 to over $80.
Leading the pack of industrial goods analysts is Cowen & Co’s Cai Rumohr. He is currently tracking a 76% success rate and a 17.3% average return per rating. One of his top picks right now is airline giant Boeing, ‘the gift that keeps on giving’ according to Rumhor. Although Boeing will no longer be able to export planes to Iran under the new US sanctions, the company’s very strong backlog means it can withstand the hit says Rumohr.
“Super Q1 supports our thesis of BA’s extended “production sweet spot”, leading to additional hike in cash flow per share estimates, which we see reaching $28 by 2020. Selling for a 7.5% 2019 cash flow yield, BA remains our #1 pick” writes Rumohr.
“Despite the tougher equity market backdrop, we’re raising our PT to $430/share, a 6% 2019 cash flow yield.” These returns should carry through into dividend raises. Specifically, this top analyst is now predicting a hefty annual payout of $9.30/share by 2020 up from $6.84 currently.
Given that Boeing is trading at $352, his $430 price target translates into 22% upside potential. So far BA shares have made steady gains since the start of the year and are now up almost 20% year-to-date. Meanwhile the Street has a cautiously optimistic ‘Moderate Buy’ consensus on BA.
Discover the Street’s hottest stock recommendations now
Top recommended stocks factor in ratings made by the best-performing analysts with the highest average return and success rate. The upshot: you can feel confident in your investment decisions. Select the best filters that match your personal investing strategy to find your own Strong Buy stocks: