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These three “strong buy” stocks are top picks for 2021, analysts say
Some traditions are too old to evade, and on Wall Street, the annual “top picks” are one of them. Usually done at the end or at the beginning of the year, Street analysts publish assessments of the stocks they believe will perform best in the coming months – their top picks. Analysts have carefully analyzed each stock, looking at its past and current performance, its trends over a variety of terms, management plans – they take everything into account. Their recommendations provide valuable guidance for building a resilient portfolio in the new year. With that in mind, we used the TipRanks database to identify three actions that analysts describe as their ‘top options’ for 2021. Talos Energy (TALO) The Gulf of Mexico has long been known as one of the largest production regions of hydrocarbons in the world, and Talos Energy, which produces about 48,000 barrels of oil equivalent per day in offshore operations in the Gulf, is an important player in the area. Talos ended the third quarter of 2020 with a net loss, but revenues, of $ 135 million, increased 53% sequentially. The company reported more than $ 353 million in affordable liquidity at the end of the quarter, including $ 32 million in cash and $ 321 million in available credit. In December of last year, and continuing in January of this year, Talos consolidated its liquidity situation by issuing senior guaranteed notes. The December issue, from $ 500 million to 12%, will be used primarily to pay for a previous note issue that matures next year. The January issue, an additional $ 100 million, will be used to cover outstanding debt on the reserve-based credit line. Both notes are due in 2026. Highlighting TALO as its primary E&P choice for 2021, Northland analyst Subash Chandra wrote: “TALO is one of the few companies that we know of trading on subsequent PDP values for no good reason, The company addressed the maturity barrier and the stresses of the credit lines with an offer of shares and refills in December. They enter 2021 with breathing space to cross the finish line with Zama and look for expansion opportunities in the GoM To that end, Chandra classifies TALO as Outperform (ie purchase) and places a target price of $ 19, indicating a potential growth of 91% in the coming months. (To view Chandra’s history, click here) Overall, with five analyst reviews on file, including 4 purchases and a single suspension, Talos obtains a strong buy rating from the analyst consensus. Shares are quoted at $ 9.96, and its average target of $ 14, 33 gives ~ 44% d and high in the horizon of one year. (See TALO’s stock analysis at TipRanks) Twilio (TWLO) Next is Twilio, a cloud communications company in Silicon Valley. Twilio’s software services allow customers to perform their telecommunications services through the office’s computer servers, providing not only phone calls, but chats, texts and video chats. The service includes security features, such as user verification. The COVID pandemic and the shift to remote work that was imposed on the economy was a blessing for Twilio. The move placed a premium on stable and reliable remote connections and telework, and the company’s revenues, which were already strong and showing sequential gains in all quarters, rose to US $ 447 million in 3Q20. Subsequently, Twilio’s shares soared 225% in the past 52 weeks. Oppenheimer analyst Ittai Kiddron sees the company on a solid basis for continued growth, writing: “Although some call and put options are in place in 1Q21, Twilio’s long-term opportunity remains underestimated by investors. We believe that the company’s differentiated product portfolio (communications / data) and the evolving GTM approach (contracting / GSI) can drive the adoption / expansion of G2K / international and allow> 30% rev. scale growth (> $ 4B / $ 6B) up to 23/24 BC ”. The 5-star analyst chooses TWLO as a ‘preferred choice’, based on his optimistic analysis of Twilio. This comes with an Outperform rating (ie Buy) and a price target of $ 550, implying 41% growth in one year. (To see Kiddron’s history, click here) How heavy is Kiddron’s bullish bet on Street? Overall, Wall Street likes Twilio, a fact clear from 21 registered analyst reviews. No less than 18 of them are purchases, against just 3 retentions. However, recent stock gains raised the price to $ 388.65, leaving room for only a 2% increase before reaching the $ 396.88 average price target. (See TWLO’s stock analysis at TipRanks) SI-Bone (SIBN) Medical technology is a field of almost infinite possibilities, and SI-Bone has found a niche. The company specializes in the diagnosis and treatment of pain and dysfunction in the sacroiliac joint between the lower back and the pelvis. The company’s revenue fell between 4Q19 and 2Q20, with the corona crisis dampening elective medical procedures. This changed in the third quarter, when the economy started to open; many industries, including the medical field, have seen an explosion of pent-up demand that has not yet dissipated. In gross numbers, SIBN reported a sequential revenue increase of 42% in the third quarter, with net revenue of $ 20.3 million. In relation to the previous year, revenues increased by 26%. During the quarter, the company approved 50,000 iFuse procedures, performed by 2,200 surgeons worldwide. The company had $ 132 million in net assets available at the end of the quarter, against $ 39.4 million in long-term debt. Looking ahead, the company predicts an annual gain of 8% to 10% in annual revenue for 2020, with expected revenue of $ 73 million to $ 74 million. Analyst David Saxon, covering Needham’s stock, says: “SIBN showed resilience during the pandemic and we believe that its engines of growth may allow it to exceed consensus revenue throughout 2021. In addition, we expect the expansion of the sales of SIBN in 2021, gaining momentum in the training of the surgeon, the next product launches and direct marketing to the patient will contribute to a strong revenue in the coming years ”. Saxon uses these points to support his ‘preferred choice’ status for SIBN. Its average price target is $ 35, suggesting an increase of 23%, and it fits well with its Purchase rating. (To view Saxon’s history, click here) Altogether, SI-Bone gets a strong buy from Wall Street, and is unanimous – based on 5 positive reviews. The shares are selling for $ 28.48, and their average target of $ 33.80 implies room for ~ 19% growth over 2021. (See TipRanks’ SIBN share analysis) To find good trading ideas for stocks with compelling valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ equity insights. Legal Notice: 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.