TipRanks
3 monster growth actions that can advance in 2021
With the end of 2020, there is a growing belief that 2021 will be a year of growth for the stock markets. The US elections returned a divided government, a government unlikely to have the broad majority – or broad support – needed to enact a broad reform of legislation on both the right and the left, and that bodes well for the economy in general. COVID vaccines are entering the distribution, and while new anti-virus blocks are also being implemented, there is a feeling that the end of the pandemic may be near. According to the analyst community, some names reflect serious growth games. These are actions that have already achieved impressive gains in the year and are prepared to see growth continue to occur even after the end of 2020. With this in mind, we use the TipRanks database to scan Street for tickers that are fall into this category. Looking at three in particular, analysts believe that each name, which also has a consensus rating of “strong buy”, may maintain its high in 2021. SunOpta (STKL) The first action on this growth list is a healthy snack company, SunOpta. The company’s product line includes vegetable drinks, fruit-based snacks, broths and broths, sunflower and roasted teas and snacks. The company trades through private label distribution and co-manufacture, as well as through food service institutions. SunOpta has a market capitalization of $ 962 million, after a year of impressive stock price growth. The stock rose an impressive 328% this year, far surpassing the markets in general. The company’s third quarter revenues reached $ 314.9 million, a 6.4% gain year on year. EPS, with a net loss of 1 cent, was better than the expected 2 cent loss – and much better than the 11 cent loss reported in the quarter last year. The company’s solid performance attracted the attention of Craig-Hallum analyst Alex Fuhrman. The analyst assesses STKL as a purchase along with a target price of $ 15. This figure implies a 40% increase from current levels. (To see Fuhrman’s track record, click here) Supporting his position, Fuhrman wrote: “We believe that the company’s focus on high-value plant foods and beverages should command a premium valuation with opportunities to increase estimates as the economy recovers from COVID. ”Fuhrman’s optimism is largely based on the SunOpta niche. The analyst noted: “We expect inventories of plant-based foods to obtain a premium rating for other food companies in the foreseeable future, given the fastest growing trends and attractive environmental benefits. With only $ 4.5 billion in sales today, herbal products represent less than 1% of the $ 695 billion food market, but it’s easy to imagine them representing a double-digit share of food sales over over time. ”Wall Street does not always meet unanimously, but in this case, yes. SunOpta’s strong buying analyst consensus rating is unanimous, based on 3 purchase reviews. The shares are selling for $ 10.70 and, with an average target price of $ 15, SunOpta has a 40% potential for future growth. (See STKL stock analysis at TipRanks) Green Brick Partners (GRBK) A bright spot in the economy last year was the residential construction industry. As people left cities to avoid COVID, they headed for the suburbs and surrounding areas – and this increased the demand for single-family homes. Green Brick is a Texas-based real estate development and home acquisition company. The company invests in real estate, mainly land, and then provides building plots and financing for development projects. Suburban expansion – not just this year for COVID, but as a general trend, has been good for Green Brick. The company’s third quarter revenue was $ 275.8 million, the best in more than a year, exceeding the forecast by 20% and growing 31% year on year. EPS was also strong; the value of the third quarter, 68 cents, was 54% above expectations and more than double the value of the previous year. Green Brick’s stock price has been rising along with the company’s financial outlook. For the year, GRBK gained 111%. In his coverage of this action, JMP analyst Aaron Hecht noted: “[We] We expect GRBK to capitalize on the trend of apartment renters moving to single-family homes for security and changing the dynamics brought on by more distance workers. The most important group change within the buyer pool is the generation of the millennium, who left the market to buy houses, a trend that we believe has had several years of parade. The trend of millennium demand is amplified in the case of GRBK, given its exaggerated exposure to markets such as Texas and Atlanta, which are the net beneficiaries of migration from high-cost coastal regions. ”To this end, Hecht classifies GRBK as Outperform (ie Buy), and its target price of $ 30 implies an increase of approximately 23% in the next 12 months. (To see Hecht’s history, click here) Although not unanimous, the rating of the strong buying consensus on Green Brick is decisive, with a 3 to 1 split of purchases versus waiting. The average target price of $ 27.5 gives a potential increase of 12.5% compared to the current share price of $ 24.45. (See GRBK stock analysis at TipRanks) Brightcove, Inc. (BCOV) Changing direction for the software industry, we came to Brightcove, a Boston-based software company. Brightcove offers a range of video platform products, including cloud-based hosting and social and interactive add-ons. The company is a leader in the delivery and monetization of cloud-based online video solutions. The strength of this business model, during these pandemic days, with its large shift from white-collar workers to remote offices, telecommuting and video conferencing, is obvious. Brightcove’s profit reached 11 cents per share in the third quarter, almost double the quarter of the previous year. At the top line, revenues have remained stable, maintaining between $ 46 million and $ 48 million per quarter in 2020, with no discernible COVID impact. Shares in Brightcove have been rising gradually all year, after a small spike last winter. The pace has accelerated since the end of July, after the second quarter results were released, and stocks are now up 103% for 2020. Adverse macro winds are turning into favorable winds for the video niche , as noted by Northland Capital analyst Michael Latimore. “We believe that the favorable market wind, BCOV’s leading technology platform and strong sales execution are generating strong reserves. We believe that the sales force is at full productivity. The BCOV will add more channel managers this year. Management is focused on process improvements to achieve consistency in revenue retention rates, ”noted the 5-star analyst. Latimore classifies the shares as Outperform (ie, Buy), and its $ 24 price target indicates confidence in a 36% rise for the following year. (To see Latimore’s history, click here) In the past 3 months, two other analysts have launched their hat with a view of the video technology company. The two additional Purchase ratings provide Brightcove with a Strong Buy consensus rating. With an average price target of $ 20.17, investors are expected to take home a 14% gain if the target is reached in the coming months. (See the BCOV stock analysis at TipRanks) To find good ideas for trading growth stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all TipRanks stock insights. Disclaimer: The opinions expressed in this article are only those of the analysts presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.