Stock Analysis & Ideas

2 Top Stocks to Consider from This 5-Star Blogger’s Bullish Collection

Story Highlights

Market experts are the messiahs in the current gloomy environment, helping investors choose the best course for their investments to ensure financial stability even during uncertain times. Our expert for today displayed optimism on two stocks recently, which look promising.

Investor sentiment has been deeply affected due to headwinds coming from various fronts. The 40-year-high inflation, the possibility of a recession, the string of guidance cuts, and the seemingly never-ending war between Ukraine and Russia have given rise to lower enthusiasm among investors.

Investors are constantly on the lookout for safer bets, or stocks that are profiting from these stressful times, that can generate the most returns while these times last. However, the high level of uncertainty can make it difficult to make an investment choice.

With everything available online, it is easier to follow the transactions and opinions of market experts. They can help make investment decisions if tracked from the right places. TipRanks’ Expert Center gives a comprehensive look into the top experts of Wall Street and their investment choices.

Among experts, financial bloggers often go underappreciated for their efforts to educate the masses about the market. They mine the opinions of other experts, combine their own knowledge of the market with them, and put together all the data, analysis, and opinions in simpler words so that even a layman can understand the nitty-gritty of the market.

Most importantly, investors or potential investors looking for market updates and investment ideas online come across a blog, first and foremost, which then guides them to the right research instruments.

In today’s Expert Spotlight article, we will celebrate five-star financial blogger who writes under the pseudonym Colorado Wealth Management Fund, and discuss a couple of their favorite picks.

Colorado Wealth Management Fund (CWMF) has been writing financial research articles for the financial media platform Seeking Alpha for over seven years. The expert digs REITs (Real Estate Investment Trusts) for undervalued companies with strong and sustainable dividend growth and writes about them for the world to see and gain knowledge from.

Track Record

According to the TipRanks Star Ranking System, CWMF is ranked first among the 11,283 bloggers followed in the TipRanks universe; and second among 19,181 overall experts, including hedge fund managers, Wall Street analysts, corporate insiders, financial bloggers, and individual investors.

CWMF has a success rate of 76% and an average return per rating of 29.1%.

CWMF’s average returns relative to the S&P 500 and the benchmark sector stand at 10% and 7.9%, respectively.

The blogger’s most successful stance so far has been a Buy call on PennyMac Mortgage Investment (PMT). Between March 18, 2020, and March 18, 2021, the expert blogger’s bullishness generated a massive 188% return on PMT stock.

Stocks Favored by Our Expert

“Executives of companies that are performing poorly on a fundamental level don’t want extra attention, so ignoring them is the safer course. Since I choose to highlight those problems, I keep my name off the site,” explains CWMF on their LinkedIn business page.

This honest revelation makes it all the more interesting to know more about the companies CWMF is bullish on. Let’s take a look at two of them.

Terreno Realty (NYSE: TRNO)

Terreno operates as a real estate company that acquires, owns, and manages industrial properties. The latest additions to its real estate asset book were made earlier this week, which include a $13.8 million purchase of land in Anaheim, CA, and two industrial properties in Los Angeles, which the industrial REIT bought for a total of $27.2 million.

In the past 10 years, the company has returned a CAGR of 18.4%, which has been supported by its focused approach on expanding across six major coastal areas with high demand and limited supply. This has allowed the company to take advantage of high rental rates.

Most of Terreno’s acquisitions have been accretive to the company’s growth and have helped deliver impressive dividend growth for loyal investors.

Importantly, most Wall Street analysts also maintain an optimistic stance on Terreno, with a Moderate Buy rating based on three Buys and two Holds.

Earlier this month, JMP Securities analyst Mitch Germain initiated coverage of Terreno with a Buy rating and a price target of $75. Germain thinks that the company’s investment strategy of targeting coastal markets is brilliant, given the importance of those areas in the supply chain. The analyst believes that the recent broader market-led weakness in its share price performance has created a perfect opportunity for investors to buy the dip.

The average Terreno Realty price target is $75, indicating 21% upside potential.

Moreover, the latest business standing and sector prospects make our expert, CWMF, bullish on Terreno, despite not having much success with his rating on this stock earlier.

American Tower (NYSE: AMT)

American Tower is one of the largest infrastructure REITs. It owns and operates wireless and broadcast communications infrastructure in 22 countries around the world.

Regardless of the weakness in tech stocks this year, the technology sector is still growing, which is evident from its year-over-year revenue growth of 22% in Q1. Obviously, this growth was supported by the growing use of 5G and other technology, which increased the demand for American Tower’s lands to use for infrastructure building.

American Tower is capable of generating a profit of as much as $30,000 with no costs per tenant per infrastructure site.

Last month, Morgan Stanley analyst Simon Flannery was encouraged by the recovery of the AMT stock from its sharp decline in late February. He sees durable growth in the coming months, driven by the accelerated proliferation of 5G.

Also, amid the long-term secular growth in technology, American Tower is likely to be partially buffered against the volatility and risks of tech stocks by its real estate portfolio.

Wall Street is bullish on the stock, with a Strong Buy rating based on six Buys and two Holds. The average AMT price target is $281, implying 7.7% upside potential.

Our expert, CWMF, is also bullish on the stock and enjoys an 83% success rate on his ratings for AMT.

Conclusion

Given that CWMF follows one of the most stable sectors, REITs, and considering their track record and thorough analysis of the stocks discussed, their convictions are credible and can help lead your portfolio in the right direction.

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