Stock Analysis & Ideas

These Two ‘Perfect 10’ Stocks Offer Double-Digit Upside Potential

April began on a good note, with the major indices such as S&P 500 (SPX) and Dow Jones (DJIA), gaining 0.8% and 0.3%, respectively, on Monday. Meanwhile, the Nasdaq Composite (NDX) was the main winner, rising 1.9%.

Despite the fact that recession fears have faded to some extent, the prospect of new sanctions being placed by the West on Russia adds to the market’s existing concerns about inflation and supply-chain issues, which have been recurring themes in recent months.

As a result, it appears that volatility will continue to prevail in April.

In such an uncertain market, TipRanks’ Smart Score System can help investors build a portfolio that can maximize their gains.

This is a data-driven system that allows an investor to conduct more in-depth research of a company using eight major market criteria before assigning a score to the stocks on a scale of one to ten, with ten being the best.

Using TipRanks’ Top Smart Score Stocks, we chose two stocks that have recently received a score of “Perfect 10.”

Visa (V)

Visa Inc., a financial services company, has received a “Perfect 10” rating since yesterday.

The company has grown to be a prominent participant in the payments processing market. Visa’s multiple buyouts and affiliations with global banking institutions have set the road for long-term growth and steadily driven revenues.

From a financial perspective, Visa’s performance was outstanding in the fiscal first quarter, with double-digit sales and earnings growth. The company’s top-line revenue climbed 24% year-over-year to $7.1 billion, while adjusted profits per share increased 27% to $1.81 per share.

Apart from the increase in earnings, Visa distributed $4.9 billion to shareholders through dividends and share repurchases. The current dividend yield for the corporation is 0.61%.

Notably, the company’s fiscal second-quarter earnings will be released on April 27.

Analysts are upbeat about this stock, with 16 Buys ratings and three Hold ratings. The shares are priced at $227.74 and the average V price target of $273.47 implies around 20% upside from that level.

Chipotle (CMG)

Chipotle Mexican Grill, Inc., a fast-food restaurant business that recently achieved a “Perfect 10” rating, is next on the list. Chipotle’s brand has gained a lot of traction in recent years, with the company rapidly expanding its global footprint.

The company posted strong fourth-quarter profits. Revenues increased 22% year-over-year to $2 billion, which was a fantastic achievement. In the meantime, adjusted earnings per share were $5.58, up 60.3% from the year-ago quarter.

Furthermore, Chipotle maintains a strong financial position, which continues to impress investors.

The corporation had $1.8 billion in cash and investments at the end of December. In addition, operating cash flow in 2021 was 1.3 billion, up 93% from the previous year. Also, the company repurchased $168.9 million in shares at an average price of $1,750 per share.

Given the company’s strong capital and liquidity position, Chipotle will be able to maintain effective capital deployment actions in the future, thus improving shareholder value.

The investors holding portfolios on TipRanks maintain a very positive outlook on CMG stock. According to the statistics, 7.1% of these investors boosted their Chipotle stock holdings in the last 30 days.

Overall, with 20 analyst reviews on file, including 17 Buys and three Holds, Chipotle gets a Strong Buy rating from the analyst consensus. Shares are priced at $1,610.75, and the average CMG price target is $1954.39, representing almost a 21% upside potential.

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