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3 “strong buy” shares from top Wall Street analysts
Finally, the annus horribilus 2020 is coming to an end and it is time to put our portfolios in order for the new year that begins. There is good news to encourage investors for 2021. As proof that the government can sometimes act quickly and decisively, the FDA has granted emergency clearance for Pfizer and Moderna’s COVID vaccines, and vaccines are reaching distribution networks. The election is decided, except for the second round of the Georgia Senate, but no matter how they end up, the overall results are known: an intimately divided government, without a clear mandate for comprehensive legislation. It presages regulatory stagnation, which means predictability, which is good for markets. These are the facts behind the growing investor sentiment, which has pushed the Dow Jones, S&P 500 and NASDAQ to record levels. And it is that optimistic sentiment that makes top Wall Street analysts select stocks as potential winners for the coming year. And when we say that it’s the top Wall Street analysts who are making these calls, we mean it. These are stock choices of analysts among the top 5 in the TipRanks database. These are the stock experts with the most recommendations filed, the best success rate and the highest average return. So, let’s see what they have to say about these three shares of Strong Buy. ZoomInfo Technologies (ZI) Technology companies, especially in the cloud, communications and marketing segments, have some clear opportunities during the COVID pandemic. ZoomInfo is part of this group; the company’s services include digital marketing intelligence, account and data management, demand generation and lead prospecting. ZoomInfo offers AI cloud software designed to make these background tasks more efficient, so salespeople can focus on selling. ZI’s shares have seen volatile trading since going public in June 2020, but overall, shares are 34% up. The third quarter, ZoomInfo’s first full quarter as a publicly traded company, showed good results for encourage investors. Net revenue reached US $ 123.4 million, an increase of 11.8% sequentially and 56% year on year. EPS, which had been negative in the second quarter, turned positive in the third quarter, with a profit of 2 percent per share. The company ended the quarter with $ 59.8 million in free cash flow. ZoomInfo reported having 720 customers with $ 100,000 or more in annual contract value. In his analysis of ZoomInfo, Brent Bracelin by Piper Sandler, rated as a Wall Street analyst by TipRanks, presents a direct bullish case. “We are increasing revenue estimates by $ 13.6 M for this year and $ 19.6 million for next year, taking into account the strength of a broad base and small contributions from the Everstring and Clickagy acquisitions. We are ZI buyers based on their ambitions to build a modern go-to-market (GTM) operating system with a unique business model that balances high growth and high margins … Based on strong third quarter results and favorable outlook in the fourth quarter, we would be aggressive buyers of ZI, given its unique profile of high growth and high margin model with limited risk of falling, ”said Bracelin. Bracelin sets a price target of $ 59 to track this overweight rating (ie buy), suggesting that ZI has room for ~ 25% growth next year. (To see Bracelin’s history, click here) Overall, there are 9 recent reviews recorded for ZoomInfo and all are purchases – making the consensus of analysts to rate a strong unanimous purchase. The shares are quoted at $ 47.03 and the average target price of $ 55.89 indicates an upward potential of ~ 19% from that level. (See ZI’s stock analysis at TipRanks) Ichor Holdings (ICHR) Next, it is a holding company, whose subsidiaries design, design and manufacture gas distribution systems and essential chemical fluids in various sectors. Ichor is best known for its contributions to the capital equipment of the semiconductor industry, where its gas module and chemical process subsystems represent a substantial part of the cost of each chip. Ichor’s systems are also used in the manufacture of LED screens, biomedical equipment and alternative energy sources. Specialized manufacturing can be a profitable niche, especially when a company is building parts and tools needed for top-tier industries. Semiconductor chips are essential in the digital world and cannot be manufactured without input from Ichor’s tools. This gives Ichor a competitive advantage, as it offers a product without which its customers cannot do without. This can be seen in quarterly revenues, which have been rising slowly but steadily until 2020. The company saw $ 220 million at the top in the first quarter, and reported $ 228 million in the third quarter. The third quarter increased 47% year on year and was the sixth consecutive quarter to show sequential gains. EPS, at 45 cents per share, rose 28% yoy. Among the fans is Needham’s Quinn Bolton, who is second on Wall Street, according to TipRanks. “[We] we believe that Ichor’s fundamentals remain strong … we hope that the offering will enable ICHR to pursue significant mergers and acquisitions that should strengthen its market position, accelerate revenue growth and provide vertical integration and greater gross margin over time. Looking further, if the company achieves its LT operating model in the next ~ 3 years, we see NG’s earnings power of $ 4.85 per share, ”commented Bolton. To that end, Bolton values the stock as Buy, and its target price of $ 40 implies a 32% year-over-year increase. (To view Bolton’s history, click here) Like Bolton, Wall Street is choosing ICHR as a long-term winner. With 4 unanimous purchase ratings assigned over the past three months, the stock gains strong consensus from purchasing analysts. In addition to the good news, its average price target of $ 40 puts the upside potential at ~ 32%. (See ICHR stock analysis on TipRanks) DocuSign (DOCU) Last but not least, is DocuSign, San Francisco’s cloud-based electronic signature service. DocuSign offers customers a verified and secure electronic signature option for online documents. Customers reap savings with efficiency in the form of faster response, less ink and paper used in printing and less time spent printing and distributing printed copies for signature. DocuSign’s shares appreciated sharply in 2020, with the move towards remote work and virtual offices valuing digital services and online verification. DOCU grew 205%, more than tripling its value this year. The shares gained with the increase in the company’s revenues. Net revenue grew 29% between the first and the third quarter, with the third quarter number reaching $ 382.9 million. Gains in the third quarter were an impressive 53% year on year. The annual increase in free cash flow was even more impressive, from a negative $ 14 million to a $ 38 million surplus. All of this leads Alex Zukin of RBC, analyst 3 of the TipRanks database, to classify DOCU as Outperform (ie, Buy). with a price target of $ 325. Investors can pocket a 44% gain if the analyst’s thesis materializes. (To see Zukin’s history, click here) Supporting his position, Zukin writes: “[The] The beats continue as DOCU delivers another very strong quarter of acceleration across all metrics … What is even more impressive in our minds is that this is being driven almost entirely by an acceleration of the core electronic signature business with the company confident that it is still very modestly penetrated into their TAM (which has expanded significantly) that they can maintain growth above pre-pandemic levels in a post-pandemic world … ”Likewise, other Wall Street analysts like the they are seeing. With 10 purchase ratings versus 3 withholdings received in the past three months, the stock receives a strong purchase consensus rating. With an average price target of $ 276.46, analysts see ~ 22% in-store growth potential for DocuSign. (See the analysis of DOCU shares on TipRanks) To find good ideas for stock trading with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that gathers all information about TipRanks shares. 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.