You might not have a plan at all at times. Given the market’s extreme volatility, you might want to play it safe.
Just like a short while back, nobody expected higher interest rates until the end of 2022. Then, all of a sudden, Omicron became a thing to be afraid of, and then, not long after, it was regarded to be not so horrible. Finally, we can see that inflation has become the most serious issue that the Fed must address as it rose to almost 7% in 2021, the highest since 1982.
This indicates that the market is on the verge of a correction, and investors should proceed with caution before buying in equities.
In such a volatile market, TipRanks’ Smart Score System, which allows investors to do a more thorough analysis of a firm before investing in it, may be beneficial.
This strategy focuses on eight crucial parameters that help investors make better-educated judgments. This tool grades each stock on a scale of one to 10, with ten being the best.
We picked two stocks that got a “Perfect 10” using TipRanks’ Top Smart Score Stocks. These stocks have a Strong Buy average rating and double-digit upside potential.
Nike
Nike (NKE) is an athletic consumer goods company that has been scored a “Perfect 10” for the past two days. As a consequence of its product innovation, brand strength, and magnitude of operations, its stock has gained traction.
NIKE Direct, which concentrates on Nike’s sales, is gradually becoming an important part of the company’s overall strategy. NIKE’s fiscal Q2 sales were bolstered by the sustained expansion of NIKE Digital, as a result of strong digitalization activities. Nike’s venture into the nascent metaverse should also act as a growth driver in the near future.
Coming to its liquidity position, Nike has a substantial cash reserve of $15.1 billion in cash and short-term investments, up $3.3 billion from the previous year.
Also, due to its steady dividend payments and dividend increases, the firm is a popular choice among investors. The firm paid $437 million in dividends in the most recent fiscal Q2 quarter, up 14% over the previous year.
On the analyst side, Jay Sole of UBS is bullish on Nike’s direct-to-consumer (DTC) business. He expects Nike’s direct-to-consumer business to one day account for 75% of the company’s overall sales, resulting in higher-than-expected gross margins. As a result, Sole reiterated a Buy rating on the stock and a price target of $192, which implies about 30% upside potential to current levels.
The rest of the Wall Street analysts have also given Nike a Strong Buy consensus recommendation, with 15 recent ratings, including 16 Buys and 4 Holds. The company is now trading at $148.18, with an average NKE price target of $188.26 implying 27% gain from that point.
Iron Mountain
Iron Mountain (IRM) has also received a “Perfect 10” rating since yesterday. The firm is a data management firm that provides records management, data backup, and other services to Fortune 1000 corporations all over the world.
Revenues in the most recently reported third quarter were $1.13 billion, up 9% year-over-year. Both the service and storage businesses performed admirably, while the data-center business maintained its pace.
On February 24, the corporation is anticipated to release its fourth-quarter 2021 upcoming earnings.
Iron Mountain also has a lot of financial flexibility, which allows it to satisfy its debt obligations and other capital commitments while still exploring expansion prospects. The firm had $161.4 million in cash and cash equivalents at the end of September 30, 2021. The firm has been able to maintain a consistent dividend, which is now 62 cents per common share, due to its strong earnings position.
On TipRanks, Iron Mountain stock commands a Strong Buy consensus rating, based on 4 Buys and 1 Hold. The shares are priced at $44.77 and the average IRM price target of $51.40 implies around 14.8% upside from that level.
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