As we are entering the final quarter for 2017, we wanted to look ahead and see which top stocks are set to spike this quarter and beyond. To do this we used a number of TipRanks tools to find fresh stock ideas that met the following two criteria: a ‘Strong Buy’ consensus from analysts and impressive upside potential for share prices. We found that one of the best tools to find new stock ideas is the popular Trending Stocks tool.
The tool reveals stocks that have been rated by three or more analysts in the last few days. Here we looked for best-rated stocks, but you can filter it to most-rated or even worst-rated stocks across different time periods. The best part is that the tool also displays the analyst consensus and upside potential so you can quickly pinpoint exciting investment opportunities.
So, bearing that in mind, let’s dig down into these five top stock ideas now:
1. Micron (NASDAQ:MU)
This exploding semiconductor stock has just reported another very robust quarter of earnings. As a result Micron still has plenty of upside left to go even though it is trading at near-record prices. Indeed, if we look at its profile page on TipRanks it has one of the best stock ratings out of all the 5,000 plus stocks we cover. In the last three months, 20 out of 22 analysts have rated MU a ‘buy’. These analysts are predicting that in the next 12 months, Micron will reach $49, a 33% upside from the current share price.
Note too that the stock’s highest price target of $76 works out at a whopping 106% upside from the current share price. The target comes from five-star Needham analyst Rajvindra Gill who is ranked 28 out of 4,660 analysts on TipRanks. He raised his price target from just $50 on September 27.
“We believe this multiple is reasonable as we are simply applying a median historical multiple on a discounted earnings run-rate of $2.16 EPS /q (Nov. guidance). Currently, the stock is trading at a trough multiple on the perception of a “peak earnings cycle”. We assert it should be trading at a market multiple on ongoing earnings growth. We don’t believe we are at the peak of the cycle as end markets for DRAM are significantly more diverse than in years past; stabilizing the volatility of the pricing and perhaps lengthening the contracts” says Gill.
2. CBS Corp (NYSE:CBS)
This American mass media company could be the next Netflix. So says top Needham analyst Laura Martin. She recently reiterated her buy rating on CBS with an $80 price target (38% upside). According to Martin, CBS’s All Access streaming service and Showtime’s over-the-top channel will reach over 8 million subscribers by 2020. And as a result, All Access and Showtime alone could generate revenue of $1.2 billion for CBS in 2020.
Martin believes that All Access will make five original TV series by 2020, of about 10 to 13 episodes each. She says: “We expect that CBS will release one episode per week on its OTT services and start a new original series one to three weeks before another series ends. This maximizes the likelihood that consumers pay the bill every month for a year”.
TipRanks reveals that Martin has a strong track record with a 65% success rate and 15% average return across her stock recommendations. Overall CBS has received 11 recent buy ratings and 3 hold ratings. Meanwhile, the average analyst price target on CBS is just under $75. This translates into impressive upside potential of 29% in the next 12 months.
3. Heron Therapeutics (NASDAQ:HRTX)
This commercial-stage biotech company focuses on addressing unmet medical needs, with a focus on developing treatments for cancer and pain. Crucially, we can see that the stock has received six back-to-back buy ratings from analysts in the last three months. These analysts are predicting huge upside for the stock of over 86% in the next 12 months.
For example, on September 26 Mizuho Securities analyst Difei Yang initiated coverage of the stock with a $28 price target (71% upside from the current share price). Yang has a 4.5 star rating and is ranked 439 out of 4,660 tracked analysts. The market is bullish on Heron’s HTX-011 product which has the advantage of targeting both pain and inflammation post-surgery, as well as its innovative Biochronomer® drug delivery technology. Biochronomer can deliver therapeutic levels of otherwise short-acting drugs over a period of days to weeks with a single injection.
4. Aerie Pharma (NASDAQ:AERI)
The second healthcare stock on this list is soaring pharmaceutical company Aerie Pharma. AERI is busy developing treatments for eye-diseases including glaucoma which can cause vision loss and potentially blindness. Its key product candidates (Rhopressa and Roclatan) are eye drops that reduce pressure on the optic nerve. The Street is very optimistic on AERI’s outlook with 8 straight buy ratings in the last three months. Even better is the fact that these analysts believe the stock has over 37% upside potential from its current share price to the average price target of $71.
Shares are experiencing volatility ahead of a panel review by the US Food and Drug Administration which is set for October 13. The review, which is not required for every drug, will measure the health benefits against the safety risks for Rhopressa. It will conclude in a non-binding recommendation to the FDA on whether the drug should be approved. However, JMP Securities analyst Donald Ellis says any pullback is a buying opportunity. He points out that the company has expected a review since day one and is highly confident that the meeting will result in a positive outcome.
5. HubSpot (NYSE:HUBS)
HubSpot is a key ‘Strong Buy’ stock to track right now. The inbound marketing and sales platform has received a slew of recent buy ratings, with three buy ratings published on September 27 alone. Analysts are encouraged by the announcements made by the company at its 21,000-attendee INBOUND customer conference in Boston. HUBS has revealed a number of product updates at the conference including Facebook ad integrations, Shopify (ecommerce) and a new chatbot “Conversations” tool that collects customer messages in a single inbox.
Brent Bracelin, a five-star analyst at KeyBanc, is feeling bullish. He has now raised his price target from $80 to $86, an 8% upside from the current share price due to strong product potential and healthy demand fundamentals from small to medium businesses, Meanwhile top Canaccord Genuity analyst Richard Davis says any weakness in HubSpot shares represents a buying opportunity. Davis adds that the conference has confirmed his favourable take on HUBS’ near and long-term outlook.