If you’re looking for a quick boost to your portfolio, look no further. These are 7 stellar stock picks — and I will explain why. First of all each of these stocks has over 30% upside potential. This is from the current share price to the average analyst price target. (And some of these stocks have far more than 30% upside potential.) Secondly, all these are ‘Strong Buy’ stocks according to Street consensus — or all the stock’s ratings for the last three months. And last but not least, when you see the analyst investor reports on these stocks, it’s clear that these are very promising companies with serious growth to come.
I found these stocks using TipRanks’ stock screener. This nifty screener enables you to search for stocks with a bullish rating from the Street’s best analysts. Plus you can screen for only stocks with 20% upside potential and above. True, the market may look choppy but there are still some gems out there. As Wells Fargo’s Christopher Harvey told CNBC: “We are still constructive on the market, but we think people need to be a lot more selective today than they have been in the past.”
So see what you think of the following strong buy stock picks now:
Strong Buy Stocks: Sarepta Therapeutics (SRPT)
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a commercial-stage biopharma, which focuses on the treatment of rare neuromuscular diseases. Primarily, the company is focused on treating Duchenne muscular dystrophy (DMD). These treatments include both innovative gene therapies and RNA-targeted therapies. Sarepta’s Exondys 51 is already on the market.
“Launch trends [for Exondys] continue to be positive as SRPT continues to progress and add-on to its now deep, diversified pipeline of neuromuscular gene therapies” notes top Cowen & Co analyst Ritu Baral (Profile & Recommendations). She praises the ‘astonishing rapidity’ of the company’s drug development, and concludes: “We expect this pipeline to continue to drive value for a number of years.”
Shares are up a whopping 132% year-to-date, and there is still more to go. Analysts have an average price target on SRPT of $197, indicating 52% upside potential from current levels. And that’s just the average. HC Wainwright’s Debjit Chattopadhyay, for example, sees prices spiking all the way to $267 (107% upside potential). See what other Top Analysts are saying about SRPT.
Strong Buy Stocks: Micron Technology (MU)
Red-hot Micron Technology (NASDAQ:MU) is fast-becoming one of the Street’s favorite chip stocks. With a ‘Strong Buy’ analyst consensus and an $83 average price target, analysts are raring for MU shares to climb over 65%.
And RBC Capital’s Amit Daryanani (Profile & Recommendations) has just released a bullish report on Micron’s DRAM server prospects. He estimates servers now account for ~25% of total DRAM bits consumed, compared to 15-20% a year ago. This matters because DRAM makes up 70% of MU’s overall revenue.
Daryanani wrote, “We think this strong growth in server DRAM consumption is driven primarily by strong hyperscale spend and also supported by strong IT spend environment. MU is a major beneficiary of this trend with server DRAM accounting for ~29% of DRAM revenues in 1H18.”
Coupled with limited supply increases, this sets up MU for strong DRAM results. “We believe MU remains one of the more attractive names in our coverage as we see potential for sustained beats/raises helped by a consistent buyback program as we get into FY19,” the analyst concluded. See what other Top Analysts are saying about MU.
Strong Buy Stocks: MasTec (MTZ)
Florida-based specialty contractor engineer MasTec (NYSE:MTZ) has 100% Street support right now. The company’s work spans electric power infrastructure, oil and natural gas pipelines, renewable energy facilities and wireless networks.
Just recently, Baird’s Andrew Wittman (Profile & Recommendations) upgraded his MTZ rating from Hold to Buy. Plus he designated the stock as a “fresh pick.” He explains that concerns of weak cash flow and the MVP project work stoppage have already been priced into the stock. As a result, these concerns now offer a potential catalyst for the shares.
This is a sentiment echoed by top B.Riley FBR analyst Alex Rygiel. Indeed, his $71 price target suggests 64% upside potential from current levels. “Given MasTec’s strong backlog and expectations for continued growth, we believe the valuation multiple should be more in line with its historical multiple of 10x” he wrote on August 6.
Overall, the stock has a $63 average analyst price target (46% upside potential). See what other Top Analysts are saying about MTZ.
Strong Buy Stocks: FireEye (FEYE)
Cyber security stock FireEye Inc (NASDAQ:FEYE) is a leading manufacturer of flame safeguard controls and burner management systems. ‘Sustainable, profitable growth’ is how top Evercore analyst Kenneth Talanian sums up the stock. He made the declaration following impressive earnings results, with billings up 13% year-over-year.
“We view the company’s efforts to drive higher transaction volume (inclusive of the new pricing strategy) as successful given this quarter’s double-digit pipeline growth both in terms of units and dollars” writes Talanian (Profile & Recommendations).
And most encouragingly, “this pipeline represents a growth engine that continues to expand, in our view.” Plus he expects the company’s continued innovation to bring in further drive growth. In terms of price target, Talanian spies 51% upside potential with his $22 price target. This is just ahead of the average analyst price target of $19.67 (35% upside potential). See what other Top Analysts are saying about FEYE.
Strong Buy Stocks: Dropbox (DBX)
Jump into Dropbox Inc (NASDAQ:DBX) now! Top RBC Capital analyst Mark Mahaney (Profile & Recommendations) has just upgraded the stock from Hold to Buy. This comes with a shiny new price target of $36. He made the move on the back of the company’s strong Q2 results. Revenue smashed estimates, up 27% Y/Y to $339MM (vs. Street expectations of $331MM).
As Mahaney writes “We believe high expectations/multiples are warranted. Hence the upgrade…. We continue to view Dropbox as addressing a large TAM and view it as one of the clear market leaders.” And don’t be put off by the departure of COO Dennis Woodside. Given he was in the job 4 years, this is an understandable ‘entrepreneurial itch’ according to Mahaney.
Overall the average analyst price target of $37 suggests over 32% upside potential. This is with four back-to-back buy ratings in the last three months. See what other Top Analysts are saying about DBX.
Strong Buy Stocks: GW Pharma (GWPH)
UK-based medical cannabis developer GW Pharmaceuticals (NASDAQ:GWPH) could be on the cusp of something huge. GWPH is about to launch a liquid formulation of purified cannabidiol (CBD), also known as Epidiolex, in the US, for severe childhood epilepsy.
Ahead of the Epidiolex launch, five-star Stifel Nicolaus analyst Paul Matteis (Profile & Recommendations) has initiated coverage of GWPH. This is with a Buy rating and $181 price target. He sees Epidiolex hitting $1.5B in U.S. sales in 2023. He predicts a ‘strong launch’, and notes that there is already broad awareness among physicians and patients. In the near-term, Matteis says the 2019 consensus sales estimate of $115M “seems doable.”
Bear in mind, the company has already successfully launched the world’s first cannabis-plant based prescription medicine outside the U.S. for spasticity due to multiple sclerosis.
Four analysts have published recent Buy ratings on GWPH. This is with a $195 average analyst price target (42% upside potential). See what other Top Analysts are saying about GWPH.
Strong Buy Stocks: Marvell Technology (MRVL)
Marvell Technology Group Ltd. (NASDAQ:MRVL) has just completed a $6 billion acquisition of smaller rival chipmaker Cavium. The purpose: to expand its wireless connectivity business in a rapidly consolidating semiconductor industry.
B.Riley FBR analyst Craig Ellis (Profile & Recommendations) is one of the Top 10 analysts ranked by TipRanks. This is out of over 4,800 analysts. He reiterated his Buy rating on MRVL post-deal completion with a $30 price target (48% upside potential).
According to Ellis the deal has significant transformational potential. The diversification into data center networking as well as computer processing can accelerate growth and boost gross margins. This “will benefit the two primary historic drivers of sector valuation multiples — growth rate and GM percentage” cheers Ellis.
Ultimately: “As quarterly execution shows progress toward synergies goals in 2H18 and as MRVL returns to active share repurchase in 1H19, we believe shares can move toward our $30 PT with longer-term upside to the mid-to-high 30s.”
In total, 11 analysts have published Buy ratings on Marvell in the last three months. This is versus just 1 hold rating. These analysts have an average price target on this ‘Strong Buy’ stock of $28 (39% upside potential). See what other Top Analysts are saying about MRVL.
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.
