Top 3 stocks with increases above 50%, according to Wall Street analysts
Growth stocks have seen their stocks fall a bit recently due to high valuations and rising Treasury yields. This is why investors should consider adding value stocks to their portfolio. But instead of relying on traditional valuation metrics, investors should consider stocks well below their upside potential, such as MKS Instruments, Inc. (MKSI), Medifast Inc. (MED), and Amarin Corp. PLC ADR (AMRN).
While many investors focus on value metrics, such as price / earnings or price / sales, to find undervalued stocks, an even better method is to look at their upside potential against price targets. analysts. Wall Street analysts are responsible for hedging a selected group of stocks based on industry and market size.
These analysts meet with management and other stakeholders to determine a company’s current and future value based on its finances and growth potential. They use this information to generate profit estimates and target prices that help them form their overall ratings. So, a price target is what analysts think is the stock’s value per share.
If you take the average of analysts’ price targets, you can estimate the price that a stock might hit. So if a stock is trading below its average target price, there is a good chance that it will increase its price. But if a stock is trading more than 50% below its average price target, the company has very high upside potential, which is why I recommend investors to check out stocks like MKS Instruments, Inc. (MKSI), Medifast Inc. (MEAN) and Amarin Corp. PLC ADR (AMRN).
MKS Instruments, Inc. (MKSI)
MKSI is committed to providing instruments, subsystems and process control systems used to measure, monitor, deliver and control the parameters of manufacturing processes. The company’s products and systems are needed in the manufacture of flat screens, medical devices and electronic equipment.
The company is benefiting from the growth of the semiconductor market and a recovery in advanced markets. MKSI has strong growth potential in the semiconductor market due to the increased demand for advanced memory and logic chips. In addition, the strong demand for power solutions has also been a growth driver in the chip market.
The company’s advanced market is benefiting from strong demand for advanced electronics manufacturing applications and a revival in demand from various industrial applications. The company’s solutions are also being used to fight COVID. Its valves and pressure measurement solutions are used to sterilize personal protective equipment.
Additionally, the rapid adoption of 5G has created a massive growth opportunity for the business, as the implementation of 5G will require improved wireless infrastructure and new mobile devices. This bodes well for MSKI’s semiconductor and laser diode testing business. The company has an overall rating of B, which translates into a purchase rating in our POWR odds system.
MKSI has a value rating of B, which makes sense with a forward P / E of 12.06. The company also has a Momentum rating of B, as the stock has shown positive long-term performance, up 34% from last year. We also provide growth, stability, sentiment and quality ratings for MKSI, which you can find here. Additionally, the stock has upside potential of 56% based on its average price target by analysts.
MKSI is ranked # 32 in the B-rated industrial equipment industry. For more top-tier stocks in this industry, Click here.
Click here to view our industrial sector report for 2021
Médifast Inc. (MEAN)
MED is a United States-based company that produces, distributes, and sells weight loss, weight management, and healthy lifestyle products. The company is known for its leading health and wellness community, OPTAVIA. The business generates its revenue from point-of-sale transactions executed on an e-commerce platform.
The company sees the strength of OPTAVIA, its average revenue per active OPTAVIA coach increasing by 13.9% year over year. This is due to an increase in consumer interest in health and well-being. OPTAVIA follows a holistic approach that focuses on weight, diet, hydration, movement, sleep, mind and environment.
The OPTAVIA product range is marketed through a community of independent coaches who support and support their clients. The growing interest in health has helped the company attract new customers. This has led management to raise its forecast for 2021. MED has also taken several steps to drive growth, including stepping up its long-term supply chain efforts.
Additionally, the company is expanding its distribution network through expansion of existing facilities and technology investments such as a new technology center in Utah and the OPTAVIA app, which helps improve the customer experience. MED has an overall rating of B and a purchasing rating in our POWR rating system. The company has a sentiment rating of B because it is popular with analysts.
MED has a potential upside of 77% based on aggregate analyst pricing targets. The company also has an A quality rating due to a strong balance sheet. In the last quarter, the company had $ 197 million in cash and only $ 16 million in long-term debt. For the rest of the MED scores, including Growth, Value, Momentum and Stability, Click here.
MED is ranked # 6 in the Medical Industry – B rated Consumer Goods. For more top stocks in this highly rated industry, Click here.
Click here to view our health sector report for 2021
Amarin Corp. PLC ADR (AMRN)
AMRN is a biopharmaceutical company focused on the commercialization and development of therapeutics to improve cardiovascular health. Its flagship product is Vascepa, approved in the United States as a supplement to a diet for the treatment of severe hypertriglyceridemia or high triglyceride levels.
Vascepa sales have seen solid year-over-year growth over the past four years. In fact, turnover increased by 40% last year. While COVID and poor weather conditions impacted sales in the first quarter of this year, they recovered in the second quarter. This recovery is expected to continue for the rest of the year. The recent extension of its label for the cardiovascular indication is also auspicious.
AMRN has expanded its sales force and launched promotional programs to publicize the expanded label. The company increased its sales team to 800 last year. He also began promoting the expanded label to physicians and initiated promotional activities and direct consumer awareness programs.
AMRN is also committed to improving payers’ coverage for the drug. In addition, it has filed a patent infringement complaint against Hikma to prevent it from marketing a generic equivalent, as well as similar lawsuits against other suppliers of generic Vascepa. The company has an overall rating of B, which translates into a buy rating in our POWR rating system.
AMRN has a value rating of B, which is not surprising as its price-to-sales and price-to-book ratios are well below industry averages. The company also has a sentiment rating of B, which corresponds to a potential upside of 123% based on its analyst average price target. To access all AMRN ratings (Growth, Momentum, Stability and Quality), Click here.
AMRN is ranked # 31 in the biotechnology industry. For more top-ranked stocks in this industry, be sure to visit this connect.
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This article was written by David Cohne, chief value strategist for StockNews.com. David has been helping investors find the most profitable stocks for over 20 years.
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MKSI shares were trading at $ 145.16 per share on Friday morning, down $ 0.24 (-0.17%). Since the start of the year, the MKSI has fallen -3.13%, compared to an 18.42% increase in the benchmark S&P 500 during the same period.
About the Author: David Cohne
David Cohne has 20 years of experience as an investment analyst and writer. He is the chief value strategist for StockNews.com and the publisher of the POWR Value newsletter. Prior to StockNews, David spent eleven years as a consultant providing outsourced investment research and content to financial services firms, hedge funds and online publications. David enjoys researching and writing about stocks and markets. It takes a fundamental quantitative approach in evaluating stocks for readers.
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