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2 “strong buy” shares from Oppenheimer’s top analysts
Both the S&P 500 and the Dow Jones average closed at record highs, and the NASDAQ reversed the brief onslaught that led to the correction territory in the second week of March. Market gains reflect several factors: relief because COVID’s $ 1.9 trillion aid bill was passed in Congress and signed by the president; a general optimism that the ongoing vaccination program will allow for a normal economic environment sooner or later; and a growing sense that recent inflation indicators will remain low. In short, sentiment among investors is generally positive and appears to remain so, despite a recovery in Treasury bills, which saw the 10-year note reach its highest yield in over a year and the yield of the 30-year note reach to a year for high-date. As Oppenheimer’s chief investment strategist, John Stoltzfus, points out in a recent macro note, “… government bond prices tend to suffer as economies come out of a recession, while stocks tend to benefit of an improvement in economic growth … ”Reminder by Per Stoltzfus, what we are seeing should be expected: increase in shares, fall in bond prices – and increase in bond yields. The head of strategy for Oppenheimer continues to outline his vision of the correct investment stance, given the current conditions, saying: “We continue to favor actions in the current transition environment…. We persist in favoring information technology and cyclicals over defensive sectors, as well as exposure to large, medium and small caps. ”With that in mind, let’s take a look at two actions recommended by some of Oppenheimer’s top analysts. These are analysts who stand out among their peers, ranking the top 25 out of more than 7,300 Wall Street professionals covered by TipRanks, and their recommendations inspire respect. Running the tickers in the TipRanks database, we found that the stocks they marked as winning won a consensus rating of “strong buy” from the rest of Street. Let’s take a closer look. ChargePoint Holdings (CHPT) The first action we will see, ChargePoint, operates the necessary infrastructure in the background of the electric car industry. EVs are in vogue, and as adoption increases, they will change the way we view our motorized transport. ChargePoint works to make this possible and has a leading position as the largest EV charging station operator in North America, and with an increasing position in Europe. The company went public this month in a SPAC transaction. The SPAC merger that went public saw ChargePoint start trading as a CHPT on NASDAQ on March 1. After the transaction, ChargePoint had $ 615 million in cash available for use in paying off debts and financing business operations. These business operations are extensive. ChargePoint has more than 70% market share in the electric vehicle charging infrastructure segment in North America and more than 4,000 commercial and fleet customers. The company’s network includes more than 132,000 charging stations in North America and Europe. Among the fans is Oppenheimer analyst Colin Rusch, ranked 4th overall in the TipRanks database. Rusch sees a bright future for CHPT and an opportunity for investors. “We see CHPT as the leader in charging infrastructure for electric vehicles … As a pioneer in charging electric vehicles, ChargePoint is building a highly defensible business by designing an intelligent charging infrastructure … We believe the design of this product is crucial to enable functionality driven through the cloud-based ChargePoint platform, “said Rusch. The analyst added:” We believe it ranks CHPT among the largest EV charging networks worldwide and positions the company for accelerated growth due to to your technology leadership. “To this end, Rusch gives ChargePoint an Outperform rating (ie Buy), along with a target price of $ 39, which suggests a 62% increase in one year. (To view Rusch’s history, click here ) This stock, new to the public market, has already received three reviews from analysts – all of which are for Buy, making the consensus rating strong buy unanimously. CHPT shares are selling for $ 24.01, and their price $ 42.67 target average – even more optimistic than Rusch allows – implies a sharp increase of ~ 78%. (See CHPT stock analysis at TipRanks) Purple Innovation, Inc. (PRPL) EVs are not the only domain where high-tech innovation can impact consumers’ daily lives. Purple, a company founded in 2015, offers a new technological touch in products with which we are all intimately familiar: mattresses, seat cushions and pillows. company uses ‘hyperelastic polymer’ technology to create colc soft cushions and cushions that dissipate heat. All Purple products are made in the USA, and the product line includes, in addition to mattresses and pillows, bedding, pajamas and even beds for pets. Throughout the third quarter of 2020, Purple saw strong, multi-year growth. The stock value more than tripled (248% growth) over the period, while sales revenue showed consistent growth for more than two years. This was an obstacle in 4Q20, when the company did not meet expectations for revenue and profit. Net revenue in that quarter, of $ 173.89 million, fell 7% sequentially (albeit up 39% year on year), while EPS, at 7 cents, was below the forecast of 11 cents. On the positive side, the company’s full-year revenue for 2020, $ 648.5 million, increased 51% compared to 2019 – and it was a company record. Purple ended 2020 with an annual EPS of 78 cents, up from 16 cents a year ago, and increased its cash by $ 89.5 million. Even so, the shares lost 33% when the fourth quarter report was released and have not yet recovered that ground. Brian Nagel of Oppenheimer, however, is not discouraged by the recent fall in stocks. The 5-star analyst, ranked No. 2 overall on TipRanks, describes Purple “as a disruptor in the mattress and premium bedding market and one of the most exciting growth stories for the general consumer” Turning to the company’s prospects , Nagel says: “… although in recent quarters the company’s market share numbers have improved significantly, PRPL still controls only 3% of the general mattress sector and only 6% of the premium mattress market. This suggests opportunities for expanding sales that are still significant in the future. ”Nagel gives PRPL shares an Outperform rating (ie Buy), along with a target price of $ 45 which indicates confidence in a 42% rise in the next 12 months. (To see Nagel’s history, click here) Purple mattresses may be comfortable, but Wall Street analysts are not sleeping with this action. They gave a unanimous note of 9 recent Purchase reviews, for a Strong Buy consensus rating. The shares have an average target price of $ 36.78, which suggests a 16% year-over-year increase from the $ 31.67 trading price. (See TipRanks PRPL stock analysis) To find good ideas for stocks recommended by high-performance analysts, visit TipRanks ‘Analysts’ Top Stocks. 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.