We have all heard about the big stocks a million times. That’s not to say they are bad investing prospects. Not at all. Amazon (NASDAQ:AMZN), for example, is an expensive stock with robust growth potential.
However, there are thousands of stocks out there. What about the stocks no one else is talking about? They can make compelling investing propositions too. In fact, some of the stocks covered below are performing incredibly strongly right now. They deserve their moment in the spotlight.
Plus if other investors aren’t investing in these stocks, there’s still a strong chance that they are trading on the cheap.
Here I turned to TipRanks’ Stock Screener to pinpoint 10 killer stocks that are floating under the radar. All the stocks covered below have a “strong buy” analyst consensus based on the last three months. This is apart from Solid Biosciences (NASDAQ:SLDB) which has a “moderate buy” consensus but was just too promising not to include! I also use TipRanks to track the upside potential of each of these stocks from their current trading levels.
Let’s take a closer look now:
Top Stocks to Buy: Activision (ATVI)
Game on! So says top Jefferies analyst Timothy O’Shea (Profile & Recommendations). He has just selected Activision Blizzard (NASDAQ:ATVI) as his No. 1 Franchise Pick with a bullish $86 price target (22% upside potential).
And now is the perfect time to jump in: “With ATVI down 7% since July 25, we see a buying opportunity given the numerous major catalysts coming in 2H and into 2019.”
Notably, Call of Duty (Oct 12) is expected to again be the No. 1 best-selling title globally. In addition to expansions for World of Warcraft, Hearthstone, and Destiny, the second half will feature a major mobile game from King (potentially a new Candy Crush).
O’Shea concludes “ATVI remains a Franchise Pick given our expectation for nice leverage as the new mobile game and ad businesses scale.”
Bear in mind that this “strong buy” stock has received an impressive 11 recent buy ratings vs just one hold rating. This is with an $83.5 price target (17% upside potential). See what other Top Analysts are saying about ATVI.
Top Stocks to Buy: Galmed (GLMD)
Liver disease biotech Galmed Pharmaceuticals (NASDAQ:GLMD) has 100% Street support. Seven analysts have published GLMD buy ratings in the last three months. And their $38 average analyst price target predicts massive upside potential of 191%.
Analysts are excited about lead product candidate, Aramchol. The drug has the potential to be a disease modifying treatment for fatty liver disorders, including NASH (Non-alcoholic steatohepatitis). This is a chronic disease that constitutes a large unmet medical need. According to statistics published by GlobalData, the NASH market is slated to balloon to $25.3B by 2026.
“We believe that Galmed, with a market cap of $230 million, is undervalued in relation to its peers in the NASH space” writes Cantor Fitzgerald’s Elemer Piros (Profile & Recommendations). He points out that Arachmol has so far demonstrated a strong safety profile with positive efficacy across numerous endpoints. See what other Top Analysts are saying about GLMD.
Top Stocks to Buy: KKR (KKR)
Since the previous investor day, “The results have been excellent, and we think the growth targets laid out by management across the platform are conservative and achievable.”
Most notably, KKR is growing fast, and thus gaining share in an already fast growing industry — 20% CAGR since 2004 vs. 12% industry CAGR. It’s been doing that by diversifying the scope of the products it offers and assets it manages.
As a result, Taylor concludes: “We left with every reason to believe that the stock remains significantly undervalued in a world where undervalued growth is very hard to find.” She has a $35 price target on the stock (30% upside potential). See what other Top Analysts are saying about KKR.
Top Stocks to Buy: Parsley Energy (PE)
Parsley Energy (NYSE:PE) – a “strong buy” stock according to the Street — is a promising oil stock. The company is focused exclusively on the Permian Basin, one of the most resource-rich oil basins in the world.
“We believe PE shares should outperform the company’s peer group over the next 12 months” cheers RBC Capital’s Scott Hanold (Profile & Recommendations). “PE’s production growth profile, balance sheet, and oil hedge book are best-in-class and differentiate from peers”
Notably, PE is focused on improving development cycle times which could drive upside to 2018 and beyond’s oil volumes and higher present value from core Permian assets. Hanold’s $40 price target falls just below the average analyst price target of $42.64 (36% upside potential). See what other Top Analysts are saying about PE.
Top Stocks to Buy: Gray Television (GTN)
Atlanta-based Gray Television (NYSE:GTN) has just snapped up Raycom Media in a $3.65 billion deal. Following the deal, Gray will become the third-largest TV station owner in the US. Plus Gray’s station reach will rise from about 10.4% of total U.S. television households to 24%.
“The deal positives appear to vastly outweigh the associated risks” applauds top Benchmark analyst Daniel Kurnos (Profile & Recommendations). He recently reiterated his “buy” rating with a $26 price target (75% upside potential). Even with the heavier debt load, he still sees significant further upside potential ahead.
“The Raycom acquisition meshes two highly complementary station portfolios from both a quality and culture perspective, while also enhancing opportunities to capture political upside and participate in the growing market for original content.” See what other Top Analysts are saying about GTN.
Top Stocks to Buy: Solid Biosciences (SLDB)
This is an extremely interesting life science company focused on solving Duchenne muscular dystrophy. Solid Biosciences (NASDAQ:SLDB) is a genuine rival for larger biotech Sarepta Therapeutics (NASDAQ:SRPT) — but at a much-reduced price. (Solid is trading at $38, while SRPT is already at $120)
And now Sarepta Therapeutics has announced that its phase I/II trial of its micro-dystrophin gene therapy (GT) for DMD has been placed on clinical hold. This gives Solid the advantage says five-star Chardan Capital analyst Gbola Amusa (Profile & Recommendations).
He writes “Solid to us may gain the edge on timing, also as a result of its clinical trial design being more consistent with FDA guidelines.”
The conclusion “With Pfizer’s market cap at $222.2 bn, Sarepta’s at $8.6 bn, and Solid’s at $1.4 bn, Solid to us continues as the most logical play for profound stock price upside based on emergence of potentially breakthrough AAV-based GTs [gene-therapies] in DMD.” His $60 price target indicates 56% upside potential. See what other Top Analysts are saying about SLDB.
Top Stocks to Buy: Trupanion (TRUP)
Welcome to Trupanion (NASDAQ:TRUP), a pet insurance provider for cats and dogs in the U.S., Canada and Puerto Rico. The company has just smashed its second-quarter earning results. As a result, five-star RBC Capital analyst Mark Mahaney (Profile & Recommendations) ramped up his price target from $36 to $44.
“TRUP posted very strong Q2 results with accelerating subscription pet growth, expanding EBITDA margins, and a full-year revenue guidance raise that was larger than the Q2 revenue beat,” Mahaney told investors in his Aug. 3 report.
He sees a long growth runway ahead as Trupanion faces a large growth opportunity (TAM could be $3–5B+) in an underpenetrated market (less than 1%). Ultimately: “we continue to believe TRUP has the characteristics of a high-growth, subscription-based ‘Net company and benefits from a highly recurring model, which adds predictability.” Meow! See what other Top Analysts are saying about TRUP.
Top Stocks to Buy: Splunk (SPLK)
Splunk (NASDAQ:SPLK) turns machine data into answers. This can cover anything from security and compliance to actionable business insights e.g. into customer behavior. Now Splunk is trading at just over $100. This is down around 5% on a three-month basis.
For top-rated Monness analyst Brian White (Profile & Recommendations), this price is far too low. “Essentially, Splunk’s stock did not experience the upside of other rapidly growing companies over the past four years, yet the recent market volatility hit the stock harder than most.”
This is even though “Splunk reported one of the best quarters in our universe just over a month ago and raised its revenue outlook for FY19.”
That’s lucky for investors, because we are now looking at an attractive entry point says White. This is “one of the most consistent companies we cover and with strong revenue growth that we peg at 30% in CY18.” See what other Top Analysts are saying about SPLK.
Top Stocks To Buy: MOMO (MOMO)
Known as the “Tinder of China.” Momo (NASDAQ:MOMO) is a free social search and instant messaging mobile app that specializes in match-making. This is especially true following the February acquisition of Tantan — “China’s Tinder” — for $735 million. However, it has also morphed into a gaming and social platform, much of it driven by streaming video.
Five-star Standpoint Research analyst Ronnie Moas (Profile & Recommendations) has just upgraded Momo from “hold” to “buy.” He believes the stock is now trading at a far more attractive level. Indeed, his new $54 price target indicates upside potential of over 30%.
“The stock is now trading at just ~13 X earnings estimates for next year. Revenue growth should be 25%. There is 1 billion dollars in cash on their balance sheet with no debt against the market cap of 8 billion dollars. If you stripped out the cash, the stock is trading at 11.5 X earnings” points out Moas.
And the Street as a whole is even more bullish. The $58 average analyst price target indicates upside potential of over 40%. See what other Top Analysts are saying about MOMO.
Top Stocks To Buy: Marinus Pharma (MRNS)
Last but not least, Marinus Pharmaceuticals (NASDAQ:MRNS) is a cutting-edge biotech with a unique focus. The biotech is developing ganaxolone to improve the lives of patients with epilepsy and neuropsychiatric disorders. This includes postpartum depression — a massive market opportunity.
Mizuho Securities’ Difei Yang (Profile & Recommendations) is one of the Top 100 analysts ranked by TipRanks. She sees prices surging by almost 130%. She is extremely optimistic about the upcoming results of a Phase 2 study of ganaxolone IV in women with postpartum depression (PPD).
“We anticipate this will be an important catalyst for the shares” writes Yang. She continues “We see upside potential of 100%+ assuming convincing data including a clear dose response.”
And the best part: “We believe the downside is limited given the history of the compound and potential in other indications.” The data is now due in Q4 instead of Q3, but Yang isn’t worried. “With no change to the trial design, we are not concerned about the slippage on the timeline by a few weeks.” See what other Top Analysts are saying about MRNS.
TipRanks.com offers exclusive insights for investors by focusing on the moves of experts: Analysts, Insiders, Bloggers, Hedge Fund Managers and more. See what the experts are saying about your stocks now at TipRanks.com. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.