Investors can easily identify stocks that have a greater chance of outperforming the market with the help of TipRanks’ Top Smart Score Stocks tool. This tool assigns a score to stocks based on eight different factors, including analyst ratings, technical analysis, and insider activity, among others. It is worth mentioning that shares with a “Perfect 10” Smart Score have historically outperformed the S&P 500 Index (SPX) by a wide margin.
Today, we have handpicked three such stocks that are carrying an Outperform Smart Score of 10: Suncor Energy (NYSE:SU), M&T Bank (NYSE:MTB), and Lululemon Athletica (NASDAQ:LULU).
Let’s delve deeper into each stock.
Suncor Energy, Inc.
A Canada-based integrated energy company Suncor was added to the Perfect 10 list yesterday. Our data shows hedge funds are currently bullish on the stock as they bought one million shares of the company last quarter. The stock also exhibits Bullish bloggers and Positive news sentiment. The efficiency of Suncor is further demonstrated by its ROE of 24.2%.
Earlier this week, analyst Devin McDermott of Morgan Stanley lowered the firm’s price target on Suncor to $42.92 while maintaining a Buy rating on the stock. The analyst sees a 38.4% upside potential in SU’s share price from its current level.
Is Suncor Stock a Buy or Sell?
Suncor has a Moderate Buy consensus rating on TipRanks, based on four Buy and six Hold recommendations. The average SU stock’s price target of $39.94 implies 28.8% upside potential from current levels.
M&T Bank Corp.
The bank holding company M&T Bank carries a Smart Score of “Perfect 10” due to its strong metrics. This includes 100% bullish blogger sentiment and Positive News Sentiment on TipRanks. Moreover, corporate insiders bought the company’s shares worth $61K in the past three months. Lastly, an ROE of 9.2% is another positive factor.
Recently, Citigroup analyst Keith Horowitz upgraded the stock’s rating to Buy from Hold but lowered the price target to $155 from $178.
Horowitz pointed out that M&T Bank has a stronger capital position than most of its competitors. The analyst also thinks the stock’s risk-reward ratio is favorable at its current levels.
Is MTB a Good Stock to Buy?
MTB stock has received nine Buys and four Holds for a Moderate Buy consensus rating. Further, analysts’ average price target of $176.98 implies 48% upside potential.
Lululemon Athletica, Inc.
Yesterday, the athletic wear maker was assigned a top-notch Smart Score of “Perfect 10” on TipRanks. Bloggers are bullish on the stock, while News Sentiment is also positive. Further, the company generated a 29.03% return on equity (ROE) over the trailing 12 months.
Recently, J.P. Morgan analyst Matthew Boss reiterated a Buy rating on LULU stock with a price target of $430. The stock has been added to J.P. Morgan’s Analyst Focus List after the release of Q4 results.
Lululemon is one of the top performers in the consumer discretionary sector during a slowdown, according to the analyst. Furthermore, the 30% year-over-year growth in LULU sales during the fourth quarter continues to impress Boss.
Is LULU a Buy or Sell?
LULU stock has a Moderate Buy consensus rating on TipRanks. This is based on 22 Buys, one Hold, and three Sells. The average price target of $394.29 implies 10.1% upside potential from current levels.
Ending Note
Investment decisions in these uncertain times can be a daunting task for investors. The highest Smart Score on TipRanks, however, suggests that these stocks could outperform the broad market averages. Further, analysts believe that SU, MTB, and LULU have the potential to deliver solid returns due to their strong fundamentals. Additionally, investors can leverage TipRanks’ Experts Center tool to identify top stocks.
