3 monster growth stocks with potential for extra earnings
Ultimately, investors want to see returns. To achieve this goal, seasoned Wall Street watchers often look to one strategy: growth investing. A solid growth game is a name that looks set to not only grow at an above-average rate, but also generously reward long-term investors. Rolling up their sleeves, investors are pounding the curb on Wall Street in search of tickers with impressive long-term growth prospects. However, having a goal in mind is one thing, but focusing on those stocks that are ready to make money in the years to come is a whole different story. With that in mind, we adapted and embarked on our own search for investment opportunities with high growth stories. Using the TipRanks database, we were able to identify 3 Buy-rated tickers that each have considerable upside potential, according to Wall Street analysts. Cowen Group (COWN) We’ll start with Cowen Group, a New York-based investment bank. Cowen offers investment management and brokerage services, and is known to be a risk taker willing to quickly enter disruptive industries; Cowen was one of the first boosters in high-tech stocks dot.com, and more recently in the cannabis sector. The main operations of the bank are in the United States and the United Kingdom. Recent growth on the part of the bank has been extreme; since this time last year, COWN shares have risen 534%. The stock’s appreciation pushed the company’s market cap to over $ 1 billion and provided investors with solid returns during the difficult corona crisis. After a slowdown in 1Q20, the company has posted three consecutive quarters of year-over-year revenue and profit. These gains were particularly impressive in Q2 and Q4; looking at 4Q20, the most recent released, Cowen posted record quarterly net income of $ 90.5 million, according to GAAP measurements; revenue for the full year was $ 209.6 million. The gains were driven by record performances in the investment banking and brokerage divisions. Cowen’s performance impressed Piper Sandler’s 5-star analyst Sumeet Mody, who writes: “We remain very positive on COWN following strong 4Q20 earnings results. Following the company’s sustained and strong brokerage and banking activities throughout 2020, the earnings outlook has improved significantly as banking pipelines remain strong and the brokerage business has started the year strong. investment banking and brokerage income than expected as well as lower expense ratios. To that end, Mody notes that Cowen shares an overweight (i.e. buy), and his price target of $ 71 points to a 78% year-over-year increase from current levels. (To see Mody’s track record, click here) Piper Sandler’s analyst is the bullish outlier here, but Wall Street, for the most part, agrees with him on Cowen, as shown by the 3-1 favoring Division Buy to Hold reviews. The shares are priced at $ 39.86 and their average price target of $ 47 implies an increase of about 18% for the coming year. (See COWN Stock Analysis on TipRanks) Commercial Vehicle Group (CVGI) Talk about the auto industry, and naturally you’ll start talking about auto manufacturers. But the industry is more than that – there is a whole network of parts suppliers and service companies that support automakers, and the Commercial Vehicle Group lives in that niche. The company provides a variety of services to the automotive industry, including warehouse automation, robotic assemblies, seating systems, plastic products, EV assemblies and mechanical assemblies. Commercial Vehicle Group customers include the commercial truck industry, electric vehicle manufacturers, and the e-commerce warehousing industry. The big story here, for CVG, has been the company’s warehouse automation segment. The corona crisis inspired a massive push towards e-commerce, and CVG has benefited from it. The company’s warehouse automation segment saw higher volume in 2020 – and greater efficiency through cost reduction actions during the year. Fourth quarter revenue exceeded $ 216 million, a 14% year-over-year gain. Operating profit for the quarter was $ 5 million, a year-over-year gain of $ 9.3 million. The quarterly results marked the first quarterly year-over-year gains for the company in 2020, and come after the company’s shares have consistently outperformed over the year. CVGI shares have risen 543% in the past 12 months, far outpacing the broader markets. In an auspicious gesture for the future, CVG announced earlier this month a partnership with Xos, a commercial manufacturer of electric vehicles, for the development of sustainability initiatives. Covering this action for Barrington, 5-star analyst Christopher Howe was impressed with the company’s backlog of new business. “The company achieved new net gains of over $ 100 million annualized in 2020, primarily through warehouse automation and electric vehicles, all of which are expected to convert this year. Going forward, he expects to achieve an additional $ 100 million in new net gains in 2021, ”Howe noted. The analyst added “[EV] activity is robust [and] the company expects these programs to remain in the development phase until 2021, and then turn into revenue once product baselines stabilize. When it comes to warehouse automation, according to Logistics IQ, demand for warehouse automation products is expected to grow by around 14% per year through 2026. ”In light of these comments, Howe notes that CVGI shares outperformance (i.e. a buy), with a price target of $ 14 to indicate a 39% year-over-year increase. (To see Howe’s track record, click here) There are two analysts’ analyzes in this company’s file, and they both agree: CVGI is a buy-stock. The shares have an average price target of $ 14, matching Howe’s. (See CVGI stock review on TipRanks) Zedge, Inc. (ZDGE) We’ll end our growth stock review with software industry resident Zedge. This company offers customization options for smartphones, which have proven to be very popular. Zedge’s platform offers wallpapers, ringtones, app icons, widgets, and notification sounds, among other features. The Zedge app has over 450 million installs and over 30 million monthly active users – key metrics in the world of smartphone apps. But perhaps the most telling statistic is this: Zedge has consistently been in the top 25 for free apps on Google Play for the past seven years. This kind of popularity gives a software company a solid foundation, and Zedge shares have reaped the rewards. The stock has risen 932% in the past 6 months, growth that has coincided with revenue growth. Zedge has experienced 5 consecutive quarters of year-over-year revenue growth. The company released its 2Q21 results on March 15, and the results broke all records for the company. Revenue was $ 5.3 million, net income was $ 2.3 million, and EPS was 17 cents. Monthly active users reached 35.4 million. The turnover represented a gain of 101% year on year; EPS was up from just 1 cent the year before. Following these gangbuster results, Zedge revised its revenue forecast for the year 2021 upward to a growth forecast of 75-80%. Maxim Group analyst Allen Klee is impressed with Zedge and sees a clear path forward for the company. “Zedge is accelerating the growth of its advertising platform and new offerings. We expect the company to strengthen its ecosystem so that the 35 million monthly active users are more engaged with the platform, which will translate into better retention and monetization. We also expect 2021 to have catalysts for developing Shortz’s short storytelling and new entertainment-like podcasts, ”Klee said. Based on all of the above, Klee assigns a buy rating to the ZDGE shares, along with a price target of $ 24. This target reflects Klee’s confidence in Zedge’s ability to climb 57% over the next twelve months. Some actions go unnoticed, and ZDGE is one of them. Zedge’s is the company’s only recent analyst review, and it’s decidedly positive. (See ZDGE Stock Analysis on TipRanks) To get great ideas for growth stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool that brings together all the information about TipRanks stocks. . Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
About the Author
Christine founded Sports Grind Entertainment with the aim of bringing relevant and unchanged sports information to the general public with a specific perspective for each story offered by the team. She is a competent journalist who has a reputable portfolio with skills in content analysis and research.