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2 ‘Perfect 10’ Stocks to Help Survive Market Volatility
Stock Analysis & Ideas

2 ‘Perfect 10’ Stocks to Help Survive Market Volatility

The stock market was on the mend after a rush of positive earnings reports. Unfortunately, this isn’t the case anymore. The recent return of a novel coronavirus type — B.1.1.529 — in South Africa has wreaked havoc on the market and sparked concerns about economic progress.

As a result, volatility is expected to prevail in early December as well.  

In such a market scenario, TipRanks’ Smart Score System enables an investor to do a more thorough evaluation of a firm.

This system considers fundamentals and technicals, as well as analyst, blogger, and news sentiment, in addition hedge fund and corporate insider activity. To help investors make better judgments, each stock is then rated on a scale of one to ten, with ten being the best.

Using TipRanks’ Top Smart Score Stocks, we chose two stocks that scored a “Perfect 10.” Both companies achieved the highest possible score of “10”, indicating that they represent a compelling case for market traders.

Johnson & Johnson

We have Johnson & Johnson (JNJ), a healthcare business that has been rated a “Perfect 10” since yesterday. The company, which focuses on pharmaceuticals and medical technology, is a popular pick among investors due to its wide product range and long-term dividend growth track record.

The business recently announced plans to spin off its Consumer Health segment into a publicly-traded company. As a consequence of the decision, the company should be able to explore more specialized business strategies and accelerate expansion.

Further, Johnson & Johnson revealed its third-quarter 2021 earnings on October 19. It earned $23.3 billion in revenue, up 10.7% year-over-year, due to robust sales in the Pharmaceutical division.

Not only did revenue increase, but so did the profits. Johnson & Johnson’s third-quarter profits per share were $2.60, up 18.2% from the year-ago quarter and higher than Wall Street expectations of $2.36.

The remarkable results, according to management, were fueled by strong above-market performance in Pharmaceuticals, continued recovery in Medical Devices, and significant growth in Consumer Health.

On the analyst side, Louise Chen of Cantor Fitzgerald was bullish about the company’s prospects after attending the company’s Pharmaceutical Business Review meeting.

Len wrote, “The upbeat and inspiring meeting increases our confidence that the company’s existing drugs, as well as its pipeline, are underappreciated in terms of what is currently reflected in the share price.”

She also expects the company’s pharmaceutical revenues to rise in the near future, as a result of its diverse product line.

Given the stock’s positives, Chen reiterated a Buy rating and a price target of $215.00, which implies about 34.6% upside potential to current levels.

Johnson & Johnson has a Strong Buy consensus rating from Wall Street analysts, with 6 recent ratings, including 5 Buys and 1 Hold. The stock is now trading at $159.75 and the average JNJ price target of $194.00 implies around 21.4% upside from that level.

Keysight Technologies

Another stock that has scored a “Perfect 10” since yesterday is Keysight Technologies (KEYS).

This telecom stock looks well-positioned to gain from the growing demand for semiconductor measurement equipment. Furthermore, the company should reap the benefits of faster 5G deployments and 6G-related research applications.

The corporation released fantastic fiscal fourth-quarter earnings last week. Revenue increased by 6% year-over-year to $1.29 billion. Meanwhile, earnings increased 12.3% year-over-year to $1.82 per share, above the Street’s prediction of $1.64.

The results show the company’s ability to withstand supply chain problems.

Post Q4 earnings announcements, Jim Suva of Citigroup maintained a Buy rating on the stock but increased the price target to $220 from $190, implying 11.3% upside potential. 

Suva was pleased with the company’s fourth-quarter performance, and he expects Keysight to maintain its strong margins in the future.

He also thinks Keysight’s operations are “impressive and unlocking shareholder value” and he keeps it as his top telecom pick.

On TipRanks, Keysight stock commands a Strong Buy consensus rating, based on 8 Buys and 1 Hold. The shares are priced at $197.74 and the average KEYS price target of $208.63 implies around 5.5% upside from that level.

Disclosure: At the time of publication, Shalu Saraf did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates  Read full disclaimer >

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