Is the fund for these 3 actions? Analysts say ‘buy’
Never say that one person makes no difference. Last Thursday, stocks fell, bonds rose, and investors started taking inflationary risks seriously, all because one guy spoke his mind. Jerome Powell, Chairman of the Federal Reserve, held a press conference in which he gave both the good and the bad. He affirmed, again, his belief that the COVID vaccination program will allow a total reopening of the economy and that we will see a resurgence in the labor market. That is the good news. The bad news is that we will likely see consumer prices rise in the short term as well: inflation. And when inflation starts to rise, so do interest rates, and that’s when stocks tend to fall. We haven’t gotten to that point yet, but the specter was enough last week to put a lot of pressure on the stock markets. However, as the market pullback has pushed many stocks down, several Wall Street analysts believe that now may be the time to buy. These analysts have identified three tickers whose current stock prices are landing near their 52-week lows. Noticing that each is ready to pull back on an upward trajectory, analysts see an attractive entry point. Not to mention, each has earned a consensus rating of Moderate or Strong Buy, according to the TipRanks database. Alteryx (AYX) Let’s start with Alteryx, a California-based analytics software company that takes advantage of the great changes brought by the information age. Data has become a commodity and an asset, and more than ever, companies now need the ability to collect, collate, classify and analyze tons of raw information. This is exactly what Alteryx products allow, and the company has built on that need. In the fourth quarter, the company reported net income of 32 cents a share on $ 160.5 million in total income, beating consensus estimates. The company also reported good news on the liquidity front, with $ 1 billion in cash available as of December 31, up 2.5% from the prior year. In the fourth quarter, operating cash flow reached $ 58.5 million, crushing the prior year figure of $ 20.7 million. However, investors were wary of the lower-than-expected guidance. The company forecast a range of between $ 104 million and $ 107 million in revenue, compared to the $ 119 million that analysts had expected. The stock fell 16% after the report. That was magnified by the general market crash at the same time. Overall, the AYX is down 46% in the last 52 months. However, the recent sell-off could be an opportunity as business remains strong amid these challenging times, according to Wedbush’s 5-star analyst Daniel Ives. “We still believe the company is well positioned to capture market share in the nearly ~ $ 50 billion analytics, business intelligence and data preparation market with its code-friendly end-to-end data preparation and analytics platform. once pandemic pressures subside…. The revenue improvement was driven by a product mix that leaned toward upfront revenue recognition, improved churn rates, and improved customer spending trends, “Ives said. Ives’ comments support its Best Performance rating (i.e. Buy) and its $ 150 price target implies an 89% year-on-year increase for the stock. (To view Ives’ history, click here) Overall, all 13 reviews Recent analyst reviews on Alteryx, divided into 10 buys and 3 holds, give the stock a strong buy analyst. Consensus rating. The stock is selling for $ 79.25 and has an average target price of $ 150.45. AYX shares in TipRanks) Root, Inc. (ROOT) Moving on to the insurance sector, we will see Root. This insurance company interacts with clients through its app, acting more like a technology company than an insurance provider of Au tomobiles. But it works because the way customers interact with businesses is changing. Root also uses data analytics to set rates for customers, basing rates and premiums on metric meters of how a customer actually drives. It is a personalized version of car insurance, suitable for the digital age. Root has also been expanding its model to the renters insurance market. Root has been publicly trading for only 4 months; the company made an IPO in October, and is currently down 50% since it hit the markets. In its 2020 fourth-quarter and full-year results, Root showed solid earnings on direct premiums, although the company still reports a net loss. For the quarter, direct earnings premiums increased 30% year-over-year to $ 155 million. For all of 2020, that metric gained 71% to reach $ 605 million. The net loss for the full year was $ 14.2 million. Truist’s five-star analyst Youssef Squali covers Root and sees the company maneuvering to preserve a favorable outlook this year and next. “The ROOT manager continues to refine its growth strategy two quarters after the IPO, and the 4Q20 results / 2021 outlook reflect that process … They believe their intensified marketing investment should lead to accelerated policy count growth as the year progresses and provide a tailwind into 2022. To us, this seems like part of a deliberate strategy to marginally shift the balance between sales line growth and profitability a bit more in favor of the latter ”, Squali pointed out. Squali’s rating on the stock is Buy, and its $ 24 price target suggests a 95% rise in the coming months. (To view Squali’s history, click here) Root shares are selling for $ 12.30 each, and the median target of $ 22 indicates a possible ~ 79% improvement by the end of the year. There are 5 reviews on record, including 3 to buy and 2 to hold, making the analyst consensus a moderate buy. (See ROOT stock analysis at TipRanks) Arco Platform, Ltd. (ARCE) The shift to online and remote work has not only impacted the workplace. Around the world, schools and students have also had to adapt. Arco Platform is a Brazilian educational company that offers content, technology, complementary programs and specialized services to school clients in Brazil. The company has more than 5,400 schools on its client list, with programs and products in classrooms from kindergarten through high school, and more than 405,000 students using the learning tools of the Arco Platform. Arco will report 4Q20 and full-year 2020 results later this month, but a look at the company’s third-quarter November launch is instructive. The company described 2020 as a “testament to the resilience of our business.” By the numbers, Arco reported strong revenue gains in 2020, which is not surprising, considering the shift to remote learning. Quarterly revenues of 208.7 million Brazilian reais (US $ 36.66 million) increased 196% year-on-year, while the top line for the first 9 months of the year, with 705.2 million reais (US $ 123, 85 million), increased 117% year-on-year. Educational business earnings may vary throughout the school year, depending on the school vacation schedule. The third quarter is typically Arco’s worst of the year, with a net loss, and 2020 was no exception. But, the net loss for the third quarter was only 9 cents a share, a big improvement over the loss of 53 cents reported in 3Q19. Mr. Market reduced 38% of the company’s stock price during the last 12 months. However, one analyst believes that this lower share price could offer new investors the opportunity to enter ARCE at a low price. Credit Suisse’s Daniel Federle rates ARCE Superior (ie Buy) along with a $ 55 price target. This figure implies a 12-month upside potential of ~ 67%. (To view Federle’s track record, click here) Federle is confident that the company is positioned for the next stage of growth, and notes: “[The] the company is structurally sound and moving in the right direction and … any eventual operational data weakness is related to the macro and not to any business related issue. We continue with the view that growth will return to its regular trajectory once the effects of COVID wear off. ” Regarding the expansion plans, Federle pointed out: “Arco mentioned that it is within its plans to launch a product focused on the B2C market, probably already in 2021. The product will focus on offering courses (for example, exam preparation) directly to the students. It is important to note that this product will not replace learning systems, but rather a supplement. The potential success achieved in the B2C market is an upside risk for our estimates. “There are only two revisions recorded for Arco, although both are purchases, making the analyst consensus here a moderate buy. The shares are trading. at $ 33.73 and have a median price target of $ 51, suggesting a 51% rise from that level. (See ARCE’s stock analysis on TipRanks) To find good ideas for trading expired stocks with attractive valuations, visit TipRanks Best Stocks to Buy, a recently released tool that brings together all TipRanks stock insights. Disclaimer: The opinions expressed in this article are solely those of prominent analysts. The content is intended to be used for purposes only Informative It is very important to do your own analysis before making any investment.