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3 Monster Growth actions that can reach new highs
Investors have a clear task ahead of them: finding stocks that will rise as the bull market approaches. Past performance, of course, is no guarantee of future gains, but stocks that have achieved rapid growth in recent months are a logical place to start looking for tomorrow’s winners. There are concerns, of course, centered on the newly controlled Democratic-controlled United States Senate, which will give the next Biden government a chance to implement its tax increase plan, and the weak job numbers in December; Will they combine to prevent the strong upward trend in the market? Not so fast, according to Credit Golisse’s Jonathan Golub. The company’s chief stock strategist in the United States raised its outlook for the end of the year 2021 from 4,050 to 4,200. Golub points out, first, that Democratic candidates won both seats in the Senate of Georgia in the second round, a development which gives effective control of Democrats – albeit on the narrowest possible margin – from both Houses of Congress. The new Biden government has pledged to sign an expanded aid package for COVID and to reverse President Trump’s policies. Congressional control is a necessary precondition. Golub said: “This should result in additional stimulus, including expanding payments to individuals.” The second point that Golub notes as an important support event for the markets is the COVID vaccination program. Although he described the program’s slow progress as “not surprising,” he adds that as the population of vaccinated individuals grows, economic activity will expand. The main economic effect of the blocking policies, in Golub’s opinion, is “a probable avalanche of pent-up consumer demand [which] it cannot be ignored. “Describing this demand, Golub says:” We are going to have the biggest stimulating event in the history of the planet in the second half of this year … “The strategist now sees – before the launch of the second half – as the one to buy. And that brings us back to growth actions. We used the TipRanks database to find three exciting growth names, according to the analyst community. Each ticker backed by analysts represents more gains in addition to its already impressive growth. Innovative Industrial Properties (IIPR) The increasing normalization of the cannabis industry in the United States has opened up a series of opportunities for forward thinking businesses. Innovative Industrial Properties is one of them. This company is a real estate investment fund with a difference – it focuses on properties in the cannabis sector for medical use. Like most REITs, IIPR acquires, owns, manages and leases properties – but its target client base is comprised of experiences, state licensed medical cannabis operators. The company’s portfolio consists of industrial greenhouses, rented as cultivation facilities for medical cannabis suppliers. The value of this niche is evident from the performance of the shares. IIPR shares have risen 137% in the past 52 weeks. The financial performance corresponded to the performance of the shares; revenues have been increasing consistently, quarter by quarter, in the last two years, and in 3Q20, the last reported, reached US $ 34.33 million. This was a 197% gain year on year. There was a slight drop in profits in the first and second quarter of 2020, during the height of the corona panic, but the company’s EPS in the third quarter reversed that, and the impression of 86 cents rose 59% year-on-year. the cannabis industry, especially now that the Senate has shifted to Democratic control. “COVID created its own favorable wind, as states rush to fill budget gaps with alternative tax sources. While this may lead to a more liberal license grant, the administration seemed confident that most states will opt for a limited license program and favor existing operators – a major boost for IIPR … Solid operator fundamentals and demand of institutional investors can lead to an accelerated pace in acquisitions, “noted Santos. Santos classifies IIPR as an Overweight (ie purchase), and its $ 250 target price implies a 40% upside in the next 12 months. recent stocks, breaking down to 5 purchases and 2 bookings, giving stocks a moderate buy analyst consensus rating. Shares have appreciated rapidly recently and are now trading at $ 178.44. (See IIPR’s stock analysis at TipRanks) Par Technology Corporation (PAR) Par Technology provides support in the hospitality industry, providing software, hardware, support services and other resources. PARs include point-of-sale software, content management, business intelligence, food sa security monitoring, sales terminals and video monitors. PAR’s restaurant segment has operations in 110 countries, with more than 100,000 user installations. The company also includes a segment of government services, providing computer-based engineering services and system design for the federal government. PAR is a major contractor for these services with the Department of Defense. The growth of this company was impressive last year. The 52-week gain is 103%, reflecting the need for strong online support for PAR’s target customer base as it works to recover from the COVID slowdown. Third-quarter 2020 revenue recovered from a modest drop in the first half of the year, and at $ 54.8 million it reached a two-year high. Among the fans is BTIG analyst Mark Palmer, who wrote: “While we expect PAR’s restaurant and retail revenue to grow by about 20% in each of the next three years, we anticipate that its Brink software business will experience annual growth in the context of 40% during that period … As PAR performs its transition to cloud software / SaaS mode, its rating should grow to better reflect the recurring nature of its subscription-based revenues and the margins associated with its software offerings. ”In line with his comments, the 5-star analyst assesses PAR a Buy along with a target price of $ 80. This figure indicates his confidence in a 29% rise for shares in one year. (To see Palmer’s history, click here) PAR has strong support from the rest of Rua. Except for a single wait, all the other 4 analysts who published an assessment in the past 3 months recommend PAR shares as a purchase. (See TipRanks PAR inventory analysis) Maxlinear, Inc. (MXL) The semiconductor industry is a vital industry and Maxlinear produces chips for a variety of functions: wireless and data center infrastructure, industrial connectivity and IoT applications, cable broadband and WiFi 6 networking. Maxlinear products are found on digital TVs, mobile devices, PCs and netbooks. Semiconductors have been on the rise in recent months and MXL inventory is no exception. The shares have risen 81% since last January, and that period includes sharp losses in February and March. The move to remote work and virtual schools valued fast, reliable connections, which in turn increased demand for the underlying chipsets. In 3Q20, Maxlinear’s sales jumped to US $ 156 million, a sequential gain of 140% and a gain of 95% year on year. The company credits the stronger demand for broadband and connectivity products from 2Q20 as the driver of gains. Suji DeSilva, 5-star analyst at Roth Capital, is totally optimistic about this action, and his comments make that clear. “We believe that MXL represents a differentiated investment opportunity in broadband and network RF and mixed signal opportunities. We believe that MXL is seeing strong continuous and strong demand for connected homes, driven by continuous remote work / learning. We hope that the fundamentals of MXL will benefit from the increase in acquisitions in the year 21 ”, said DeSilva. DeSilva places a target price of $ 50 and a buy rating for MXL shares. Its target suggests a 34% increase in one year. (To see DeSilva’s track record, click here) In short, the word on the street sounds largely optimistic about this chip maker, with TipRanks reviews demonstrating MXL as a moderate purchase. The action has 7 registered evaluations, with a 5 to 2 split between purchases and retentions. (See the MXL stock analysis on TipRanks) To find good ideas for trading growth stocks with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that gathers all TipRanks stock information. Disclaimer: The opinions expressed in this article are only 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.