At the tip of the day, buyers need to see returns. To accomplish this aim, seasoned Wall Street observers usually flip to at least one technique time and time once more: progress investing. A strong progress play is a reputation that seems poised to not solely develop at an above-average charge but additionally reward buyers handsomely over the long term.
Rolling up their sleeves, buyers are pounding the Wall Street pavement in quest of the tickers with spectacular long-term progress prospects. However, having a goal in thoughts is one factor, however zeroing in on these shares primed for beneficial properties within the coming years is one other story fully.
With this in thoughts, we suited up and set out on our personal hunt for the funding alternatives with sturdy progress narratives. Using TipRanks’ Database, we have been capable of pinpoint 3 Buy-rated tickers that every boast appreciable upside potential, in response to Wall Street’s analysts.
Cowen Group (COWN)
We’ll begin with Cowen Group, a New York-based funding financial institution. Cowen presents providers in funding administration and broker-dealing, and is called a danger taker prepared to maneuver early into disruptive sectors; Cowen was an early booster of high-tech dot.com shares, and extra lately within the hashish sector. The financial institution’s principal operations are within the US and the UK.
The financial institution’s current share progress has been excessive; since this time final yr, COWN shares are up 534%. The share appreciation has pushed the corporate’s market cap over $1 billion, and introduced buyers strong returns in the course of the tough corona disaster.
After a turndown in 1Q20, the corporate confirmed three consecutive quarters in a row of year-over-year income and earnings beneficial properties. Those beneficial properties have been significantly spectacular in Q2 and This autumn; taking a look at 4Q20, the latest reported, Cowen posted a document quarterly internet revenue of $90.5 million, by GAAP measures; full-year revenue was $209.6 million. The beneficial properties have been pushed by document efficiency in each the funding banking and the brokerage divisions.
Cowen’s efficiency has impressed 5-star analyst Sumeet Mody, of Piper Sandler, who writes: “We remain very positive on COWN following the strong results of 4Q20 earnings. After the firm’s sustained and elevated brokerage and banking activity throughout 2020, the outlook for earnings has meaningfully improved as banking pipelines remain robust and brokerage activity has started the year strong… The beat was broad based across the business lines, but largely driven by higher-than-expected investment banking and brokerage revenues as well as lower expense ratios.”
To this finish, Mody charges Cowen shares an Overweight (i.e. Buy), and his $71 value goal suggests room for a 78% one-year upside from present ranges. (To watch Mody’s observe document, click here)
The Piper Sandler analyst is the bullish outlier right here, however Wall Street, for essentially the most half, agrees with him on Cowen, as proven by the 3 to 1 cut up favoring Buy to Hold critiques. Shares are priced at $39.86 and their $47 common value goal implies an upside of ~18% for the approaching yr. (See COWN stock analysis on TipRanks)
Commercial Vehicle Group (CVGI)
Talk in regards to the automotive business, and also you’ll naturally begin speaking in regards to the automotive firms. But the business is greater than that – there’s a complete community of half suppliers and repair firms that assist the automakers, and Commercial Vehicle Group lives in that area of interest.
The firm provides a range providers to the automotive sector, together with warehouse automation, robotic assemblies, seating methods, plastic merchandise, EV assemblies, and mechanical assemblies. Commercial Vehicle Group’s buyer base consists of the industrial truck business, electrical automobile makers, and the ecommerce warehousing business.
The huge story right here, for CVG, has been the corporate’s warehouse automation section. The corona disaster impressed an enormous push towards ecommerce, and CVG has been a beneficiary of that transfer. The firm’s warehouse automation section noticed greater quantity in 2020 – and higher effectivity as a result of value discount actions in the course of the yr. This autumn revenues topped $216 million, a acquire of 14% year-over-year. Operating revenue for the quarter was $5 million, a acquire of $9.3 million year-over-year.
The quarterly outcomes marked the primary year-over-year quarterly beneficial properties for the corporate in 2020, and are available in after the corporate’s shares have constantly outperformed in the course of the yr. Shares in CVGI are up 543% within the final 12 months – far outpacing the broader markets. In a transfer that bodes properly for the long run, CVG introduced initially of this month a partnership with Xos, a industrial EV producer, for the event of sustainability initiatives.
Covering this inventory for Barrington, 5-star analyst Christopher Howe was impressed by the corporate’s backlog of recent enterprise.
“The company achieved net new business wins of more than $100 million annualized in 2020, primarily driven by warehouse automation and electric vehicles, all of which is expected to convert this year. Moving forward, it expects to achieve another $100 million of net new business wins in 2021,” Howe famous.
The analyst added “[EV] activity is robust [and] the company anticipates these programs to remain in the development phase through 2021, later converting into revenue once product baselines have stabilized. In regard to warehouse automation, according to Logistics IQ, demand for warehouse automation products is expected to grow approximately 14% per year through 2026.”
In gentle of those feedback, Howe charges CVGI shares an Outperform (i.e. Buy), with a $14 value goal to point a one-year upside of 39%. (To watch Howe’s observe document, click here)
There are two analyst critiques on file for this firm, they usually each agree: CVGI is a inventory to purchase. The shares have a mean value goal of $14, matching Howe’s. (See CVGI stock analysis on TipRanks)
Zedge, Inc. (ZDGE)
We’ll wrap up our take a look at progress shares with a denizen of the software program business, Zedge. This firm presents customization choices for smartphones, which have confirmed to be extremely standard. Zedge’s platform presents wallpapers, ringtones, app icons, widgets, and notification sounds, amongst different options. The Zedge app boasts over 450 million installs, and greater than 30 million month-to-month energetic customers – key metrics within the smartphone app universe. But maybe essentially the most telling statistic is that this: Zedge has constantly been within the prime 25 free apps on Google Play for the previous seven years.
That type of reputation provides a software program firm a strong basis, and Zedge’s shares have reaped the advantages. The inventory is up an astounding 932% in simply the previous 6 months, progress that has coincided with rising revenues. Zedge has seen 5 quarters in a row of year-over-year prime line progress.
The firm reported its fiscal 2Q21 outcomes on March 15, and the outcomes have been record-breaking for the corporate. Revenue got here in at $5.3 million, internet revenue at $2.3 million, and EPS at 17 cents. Monthly energetic customers hit 35.four million. The income quantity represented a 101% acquire year-over-year; the EPS was up from simply 1 cent within the prior yr. After these gangbuster outcomes, Zedge revised its full-year 2021 income steering upward to a prediction of 75% to 80% progress.
Analyst Allen Klee, of Maxim Group, is impressed with Zedge, and sees a transparent path ahead for the corporate.
“Zedge is accelerating growth from its advertising platform and new offerings. We expect the company to strengthen its ecosystem so that the 35M monthly active users will be more engaged in the platform resulting in better retention and monetization. We also expect 2021 to have catalysts from growing the short-form story telling of Shortz and new entertainment-like podcasts,” Klee opined.
Based on all the above, Klee places a Buy score on ZDGE shares, together with a $24 value goal. This goal conveys Klee’s confidence in Zedge’s potential to climb 57% greater within the subsequent twelve months.
Some shares fly below the radar, and ZDGE is a kind of. Zedge’s is the one current analyst assessment of this firm, and it’s decidedly optimistic. (See ZDGE stock analysis on TipRanks)
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Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is essential to do your personal evaluation earlier than making any funding.