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Expert Analyst Colin Rusch is Bullish on These Two Stocks
Stock Analysis & Ideas

Expert Analyst Colin Rusch is Bullish on These Two Stocks

The first quarter earnings season is almost behind us. Several companies outperformed expectations as economies revived from the wrath of the pandemic, while a few are still trying to gain momentum. Remarkably, many companies have refrained from giving a near-term outlook as it has become increasingly difficult to foretell the future amid the uncertain economic and business environment.

Economies worldwide are going through a tumultuous period, with record high inflation rates having a direct impact on consumers’ discretionary income. The wrath of inflation has not spared even the big names like Walmart (WMT) and Target (TGT).

Moreover, other factors such as the Russia-Ukraine war, record high fuel prices, rising interest rates, recessionary threats, and a resurgence of the COVID-19 virus in certain parts of the globe are all jolting investors’ confidence in equities.

Imagine the investor’s plight with no stability in sight! At TipRanks, we try to help investors gain greater insight into companies with the help of proprietary tools.

TipRanks also consolidates the views of Top Experts around the world. At times like these, it is best to follow the advice of experts and combine it with our own research to make the best investment choices.

Today in our “Expert Spotlight,” we will know more about Expert Analyst Colin Rusch from Oppenheimer and understand his views on stocks.

Colin Rusch, Expert Analyst

Colin Rusch is the Managing Director and a Senior Research Analyst at the renowned Wall Street research firm Oppenheimer & Co. since August 2015. He also heads Oppenheimer & Co. Sustainable Growth & Resource Optimization franchise.

Earlier, Rusch held different positions at other leading firms such as Northland Capital Markets, Ardsley Partners, ThinkEquity LLC, Broadpoint Capital, and Piper Jaffray.

Colin has also won several stock-picking awards from StarMine and TipRanks, and is a regular contributor to famous media houses, including CNBC, Bloomberg TV, and the Wall Street Journal, to name a few. Busch holds a B.A. from Wesleyan University.

Rusch’s Rank on TipRanks’ Experts List

According to the TipRanks Star Ranking system, five-star analyst Rusch ranks #6 out of the 7,901 analysts in its universe. Furthermore, out of the 18,767 overall experts tracked, Rusch holds the #11 position. Rusch has expertise in covering U.S. listed stocks from the technology sector.

Notably, Rusch has a success rate of 55%, with an average return of 55.4% over the past year. Moreover, during the same period, his calls have generated an alpha of 41.1% and 40.4% over the S&P 500 (SPX) and the technology sector, respectively.

To date, his most profitable call has been on Westport Fuel Systems (WPRT) between March 18, 2020 and March 18, 2021, which generated a humongous 800% return on his Buy call.

As seen from the majority of his calls, Rusch is highly optimistic about the Technology and Energy sectors. 67.8% of his recommendations are Buys, while 31.5% have a Hold rating, and a minor 0.7% have a Sell rating.

Let’s look at two of Rusch’s most notable calls for 2022.

Albemarle Corp. (NYSE: ALB)

Albemarle is a global specialty chemical producer of lithium, bromine, and catalyst solutions. Its products are supplied to the world’s largest and most critical industries, such as energy, electronics, and transportation. ALB stock has gained 51.5% over the past year.

Albemarle recently reported a solid beat-and-raise Q1FY22 performance. The company’s products are in high demand due to the end markets it serves, which include clean and green energy initiatives, advancing electrification, and digitalization.

Impressed by the company’s robust results, Rusch lifted the price target on ALB stock to $368 (almost 56% upside potential) from $307, while maintaining a Buy rating.

Rusch’s optimism in the stock stems from the growing shortage of lithium supply, which places Albemarle in an advantageous position to benefit from the rising lithium prices.

Moreover, Rusch is encouraged by the company’s foray into building the ecosystem and global footprint to support the growth of recycling in lithium. This, he believes, will continue to drive higher earnings for Albemarle over the long term.

Overall, several analysts are encouraged by the company’s shift toward more index-based contracts versus the spot pricing for lithium, which will enable Albemarle to generate consistent and rapid cash flows. Analysts have a Moderate Buy rating on ALB stock with an average Albemarle price forecast of $271.07, which implies 14.9% upside potential to current levels.

Notably, Rusch has given consistent Buy ratings for ALB stock. His calls have a success rate of 48% with an average profit on stock of 26.2%.

Tesla (NASDAQ: TSLA)

The world’s most popular electronic vehicle (EV) maker, Tesla, has definitely got a place on Rusch’s list. Amid the whole Musk and Twitter saga, TSLA stock has lost 40.8% year-to-date, compared to gaining almost 26% over the past year.

Tesla significantly blew past expectations in its Q1FY22 results. Following this, Rusch raised the price target on TSLA stock to $1,291 (81.9% upside potential) from $1,103 while maintaining a Buy rating.

The short supply of materials such as nickel, lithium, and cobalt, which are prerequisites for the EV industry, has resulted in a record high price hike. Eventually, EV makers were forced to increase the prices of vehicles due to the rising costs of input materials.

Tesla has been no exception. The shutdown of its Shanghai plant due to the resurgence of COVID-19 in the mainland has also dragged down production schedules.

Nonetheless, analysts remain bullish about the production ramp at both Giga Berlin and Giga Austin. Overall, TSLA stock has a Moderate Buy consensus rating based on 14 Buys, ten Holds, and five Sells. The average Tesla price forecast of $967.36 implies 36.3% upside potential to current levels.

Rusch has had consistent Buy ratings on Tesla since 2019, with a 71% success rate and an average profit per stock of a whopping 179.6%.

Ending Thoughts

Based on his expertise and in-depth analysis, our analyst, Colin Rusch, is highly optimistic view on both stocks, which could prove to be good picks to maximize investor returns. Notably, Albemarle’s lithium product happens to be one of Tesla’s primary raw materials, which makes a compelling case to keep both stocks on the radar.

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