When investors conduct their own research before deciding on stocks, they run the risk of becoming overwhelmed by the amount of data and information available. Also, when faced with conflicting information, it is very easy to make the wrong decision.
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In such situations, it is better to trust data-driven tools like the Smart Score tool created by TipRanks. This tool assesses the stock against various factors such as analyst ratings, news, financial bloggers, technical and fundamental analysis, and more. A score is then assigned between one and ten. The stocks with a score of eight, nine, or ten fall into the outperform category. A score of one is the lowest and comes under the category of underperformance.
The Australian companies Computershare Limited (AU:CPU) and CSL Ltd. (AU: CSL) have a score of “Perfect 10” on this tool. Also, their Strong Buy ratings from analysts make them an attractive option.
Let’s have a closer look at them.
Computershare Limited
Computershare is an Australian services company engaged in corporate governance & proxy services, shareholder services, equity plans, and many more.
The company’s stock has been heaven for the shareholders and has generated a return of almost 70% in the last three years. After falling a bit during the outbreak of COVID-19, the stock recovered and has been on an upward trajectory since then.
The recovery was visible in its full-year results for 2022 as well. The numbers were above expectations, and the UK market returned to the profit zone. The management’s revenue increased by 12.2% to $2.6 billion. The margin income was up by 74.3% to $186.5 million, driven by rising interest rates globally.
For 2023, the company expects a big jump in its margin income to $520 million, which will further drive its earnings growth. The company is also confident that this should offset the high inflationary pressures affecting operations.
In the results, the company announced a final dividend of $0.3 per share, which is 30% above 2021’s dividends.
Is Computershare a Good Investment?
According to TipRanks’ analyst consensus, Computershare Limited stock has a Strong Buy rating, with a complete majority of eight Buy recommendations.
The average price target is AU$30.76, which is 17.3% higher than the current price level.
CSL Ltd.
CSL is a biotechnology company and holds a dominant position in three areas namely, rare and serious diseases, influenza vaccines, and iron deficiency and nephrology.
CSL’s stock performance is not as impressive as Computershare’s, but it still managed to gain the analysts’ confidence and a score of ten on the Smart Score tool. Overall, the stock has gained 3% in the last year.
Recently, the company received big approval for its gene therapy drug, HEMGENIX, for hemophilia B. It is one of the company’s most expensive drugs. The analysts feel this move can further strengthen the company’s position in the hemophilia treatment market. A positive impact on earnings in the long term is also expected.
One other bullish aspect for the company is its grip on the influenza vaccine market. In its yearly results for 2022, the company delivered around 135 million doses of these vaccines. The revenue growth for vaccines was up 13% and helped push U.S. sales over $1 billion for the first time.
Is CSL Stock a Buy?
According to TipRanks’ rating consensus, CSL stock has a Strong Buy rating, based on nine Buy and one Hold recommendations.
The average target price is AU$323.14, which represents a growth of 12% on the current price level.
Conclusion
Both Computershare and CSL have delivered solid numbers in 2022 and have gained support from analysts. Their ‘Perfect 10’ score on the TipRanks tool is the icing on the cake and makes it easy for investors to trust these companies.
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