tiprankstipranks
These 2 ‘Perfect 10’ Stocks Have More Room to Run
Stock Analysis & Ideas

These 2 ‘Perfect 10’ Stocks Have More Room to Run

The year 2021 is coming to an end, and market players must be looking forward to seeing how Wall Street performs in December. It’s worth mentioning that all the major indices like S&P 500 (SPX), Dow Jones (DJIA), Nasdaq Composite (NDX), and Russell 2000 have risen over the past year.

However, investors are concerned about a new coronavirus strain that is already spreading over the world, especially since this mutation seems to be significantly more powerful than Delta. Additionally, the American public is concerned about growing inflation.

In such a market scenario, investors might benefit from TipRanks’ Smart Score System, which allows them to do a more complete study of a company before investing in it.

This strategy combines eight crucial characteristics, including hedge funds and insider trading activities, which are both usually difficult for investors to find. To help investors make better-educated judgments, each stock is then graded on a scale of one to 10, with ten being the best.

We picked two stocks that scored a “Perfect 10”, using TipRanks’ Top Smart Score Stocks. These stocks have a Strong Buy average rating and a lot of potential for growth.

Five Below

We have Five Below (Nasdaq: FIVE), a consumer goods business that has been rated a “Perfect 10” since yesterday. The company is a specialty retailer that sells a wide selection of high-quality, fashionable items for $5 or less.

Despite a difficult supply chain environment, the business announced outstanding third-quarter 2021 earnings on December 1. It made $607.6 million in sales, up 27.5% year-over-year, thanks to a solid product portfolio that drew in new consumers.

Not only did sales rise, but profits rose as well. Five Below’s third-quarter earnings were $0.43 per share, up 19% from the year-ago quarter and better than the $0.29 expected by Wall Street.

According to management, the strong results were fueled by strong sales in new stores as well as greater sales at existing locations.

Moreover, Five Below’s CEO Joel Anderson is upbeat about the company’s future success and new store openings.

He writes, “We are very pleased with our strong start to the holiday season…As we look ahead, we are confident that we will continue to drive sustainable long-term growth while realizing our 2,500-plus store potential in the U.S.”

After the firm posted strong Q3 results, Oppenheimer analyst Brian Nagel was upbeat about the company’s future. He believes the pandemic-related obstacles will subside by 2022, and that the firm will continue to do well in the foreseeable future.

As a result, Nagel reiterated a Buy rating on the stock and increased the price target to $230 from $220, which implies about 17.9% upside potential to current levels.

Five Below has a Strong Buy consensus rating from Wall Street analysts, with 11 recent assessments, including 9 Buys and 2 Holds. The stock is now trading at $195.06 and the average FIVE price target of $243.36 implies around 24.8% upside from that level.

Suncor Energy

Suncor Energy (SU), a Canadian oil behemoth, is another company that has achieved a “Perfect 10” since yesterday. The firm specializes in synthetic crude production from oil sands.

Suncor Energy released strong third-quarter earnings in October. The corporation reported a profit of C$0.59 per share, compared to a net loss of C$0.01 per share in the year-ago quarter. Meanwhile, total upstream production increased to 698,600 barrels of oil equivalent per day (boe/d) in Q3, up from 616,200 boe/d a year earlier.

The results improved as crude prices recovered from their pandemic lows.

In addition, Suncor Energy dividend history remains remarkable. Even if oil prices remain low for longer, the company’s strong cash position permits it to maintain its dividend. In fact, the corporation recently raised its quarterly dividend to C$0.42 per share and also increased its share repurchase program.

Commenting on the company’s capital strategy, Suncor Energy’s CEO Mark Little writes, “Since the start of 2021, we have returned $2.6 billion to our shareholders through share repurchases and dividends and have reduced net debt by $3.1 billion, demonstrating significant progress towards fortifying our balance sheet and meeting our capital allocation targets for the year.”

Post Q3 earnings announcements, analyst Gregory Pardy of RBC Capital maintained a Buy rating on the stock and a price target of $28.84, implying 18.3% upside potential. 

On TipRanks, Suncor Energy stock commands a Strong Buy consensus rating based on 11 Buys and 2 Holds. The shares are priced at $24.37 and the average SU price target of $31.25 implies around 28.2% 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 >

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles