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Analysts say ‘buy the dip’ in these 3 stocks
Smart stock investing shouldn’t be emotional, but investors are only human, making it difficult to follow a rational trading strategy. Investors should remember Warren Buffett’s advice: “We just try to be afraid when others are greedy and only be greedy when others are afraid.” What Buffett is advocating is the oldest market advice: buy low and sell high. With that in mind, we set out on our own search for attractive investment opportunities by negotiating at a discount. Using the TipRanks database, we were able to find 3 stocks that are below their recent spikes, while some Wall Street analysts are recommending ‘buy the dip’. Let’s take a closer look. Teladoc Health (TDOC) We will start with Teladoc, a remote healthcare service that uses an online network to connect patients to doctors for non-emergency issues, including ear, nose, throat problems, lab referrals, basic medical advice and diagnostics and prescription refills for non-addictive drugs. In the company’s words, they are “remote home visits by primary care doctors”, using digital technology to offer an old-fashioned service. Teladoc’s service is in high demand and the Corona year saw the company prosper – its business model was perfect for the pandemic conditions of COVID-19. Annual revenue in 2020 grew 98% year-over-year, to 1.09 billion, and total patient consultations increased 156%, to 10.6 million. In addition, the company concluded in October its merger with competitor Livongo, in a deal worth US $ 18.5 billion. Teladoc shareholders now control 58% of the combined company. While the move increases Teladoc’s capabilities and potential patient base, it also meant that the company incurred large costs during the fourth quarter. Teladoc had to pay cash for the merger, and as a result, the fourth quarter’s results showed a large EPS loss of $ 3.07 per share. In addition to the net loss in the fourth quarter, investors are also concerned with the adhesion orientation for 2021. Specifically, the number should be between 52 million and 54 million, which implies an increase of + 3.4-7.4% per year a year. That’s a + 40% drop in 2020 and + 61% in 2019. Shares have fallen 37% since their recent peak in mid-February, but Canaccord 5-star analyst Richard Close says to ‘buy this drop’. “Bright spots, such as sales of various products, increasing use, strength of new registrations and increased visits to non-infectious areas, surpass the metric of association when everything is said and done. Opportunities have arisen in the past to join (or accumulate shares in) Teladoc – we believe this is one of the opportunities, ”said Close confidently. It closes those comments with a Buy rating and target price of $ 330, which implies a 78% increase in the next 12 months. (To view Close’s history, click here) Overall, Teladoc has generated a lot of interest in Wall Street. There are 21 stock reviews, 13 of which are for Buy and 8 are for Keeping, giving TDOC a Moderate Purchase consensus rating. The stock is selling for $ 185.43, while its average target price of $ 255.05 suggests an increase of approximately 38% in one year. (See TDOC stock analysis at TipRanks) Agnico Eagle Mines (AEM) From medical care, we move on to the mining industry, because sometimes owning a gold mine is the second best thing after owning gold. Agnico Eagle has been a Canadian gold miner in the business for over 60 years. The company has active mining operations in Canada, Mexico and Finland, and showed strong production in 2020. The company’s fourth quarter report detailed more than 501,000 ounces of gold produced, at a production cost of $ 771 per ounce – against a total support cost ‘of $ 985 per ounce. This quarterly performance was doubled for the whole of 2020. Total gold production reached over 1.73 million ounces, the upper limit of the previously published annual guidance, and the cost of production per ounce, $ 838, was well below the year’s all-in support cost of $ 1,051 per ounce. High production – the fourth quarter figure was a company record – led to high revenue. Agnico reported fourth quarter net revenue of $ 205.2 million, which reached 85 cents per share. For the full year, revenue was $ 511.6 million, or $ 2.12 per share. This figure included a loss of 9 percent per share in the first quarter, and was still 6% higher than the figure for 2019. Despite the strong figures for the year 2020, AEM’s shares have fallen since the results were released, falling about 21% of its value. Although the company is profitable and production meets expectations, fourth quarter profits fell 7.6% sequentially and 38% year-over-year. Covering these shares for the CIBC, analyst Anita Soni writes: “In our opinion, the market reaction behind the quarterly earnings was exaggerated and we would recommend investors to add positions in the fall … We continue to favor Agnico for its prudent history capital allocation, broadly organic growth strategy, experience in exploration (evident in the strong replacement of reserves and increases in resources in a year impacted by COVID), project pipeline and strong management. ”In light of these comments, Soni has set a $ 104 price target to track an Outperform rating (ie Purchase). Its target implies a potential increase of 73% in one year in relation to the current levels. (To view Soni’s history, click here) Overall, Agnico Eagle achieves a strong buy analyst consensus rating, based on 12 recent reviews that include 9 purchases against 3 holds. The shares are quoted at $ 60.12 and their average price target of $ 85.62 implies a 42% upside potential for the next year. (See AEM stock analysis at TipRanks) Redfin (RDFN) Last, but not least, is Redfin, a Seattle-based online real estate broker with a modest fee-based business model (in the range of 1% to 3%) for sellers to list their homes and to close the sale. The company’s objective is to streamline and streamline the home tour, listing the debut and warranty processes. Redfin reported a revenue gain of 4.7% year-on-year in the fourth quarter, with sales reaching $ 244 million. Earnings per share, at 11 cents, was well above the net loss of 8 cents recorded in the previous year’s quarter. Both numbers surpassed Wall Street’s estimates by substantial margins. For the entire year 2020, the net loss was $ 18.5 million, or less than a quarter of the figure for 2019. Since the results were released, RDFN’s shares have fallen 25%. Investors are somewhat frightened by the company’s guidance for the first quarter, from a quarterly loss in the range of $ 36 million to $ 39 million. This is greater than the total loss of 2020, and there is some concern that Redfin is losing its profitability. The company faces headwinds of growth due to two factors, the lack of agents and the lack of properties to list. The first factor can be met by a hiring campaign, but the second is out of the company’s control – and only partially offset by higher property values. Ygal Arounian, 5-star analyst at Wedbush, wrote a note on Redfin entitled, ‘Buy the dive, there’s a lot to like here.’ “The strength of the real estate market continues to generate material benefits for Redfin, where it is having trouble keeping up with demand. Customers seeking agent service were +54 years old, even after Redfin made changes to its website that discouraged customers from requesting tours when an agent was unlikely to be available, “wrote Arounian. The analyst added:” Redfin is still it doesn’t have nearly as many agents as it needs for the level of demand it’s seeing and is aggressively hiring to get there. Agent recruitment increased by about 80% for leading agents in December / January compared to September / October. Redfin is also seeing an increase in repeat and referral rates, which may support growth for longer. ”To that end, Arounian has set a target price of $ 109 for the stock, indicating its confidence in a 57% increase in one year and supporting its Outperform rating (ie Buy). (To view Arounian’s history, click here) Redfin shares have 10 recent reviews on file, with a split of 4 purchases and 6 suspensions, for a moderate Purchase analyst consensus rating. The average target price is $ 87.71, which implies a 27% increase over the $ 69.22 trading price. (See TipFanks RDFN stock analysis) To find good ideas for stock trading with compelling 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 exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investments.