The FOMO rally is here to stay. So the key is to buy top stocks now because there may not be a serious pullback coming any time soon. Or to put it another way, timing the market is a fool’s errand. It is better to just appreciate the long-term trend and align your portfolio accordingly. Then don’t let the day-to-day volatility throw you off course.
Another way to look at this is to say that the correction was really just a bad dream with very little basis in reality. However, not everyone is waking up at the same time. That is why the S&P 500 has posted a 12% gain in the last month, with stocks generally moving higher since Christmas.
As most of you know, FOMO means “Fear of Missing Out”. So day by day, the laggards to the bull rally get back on board pushing stocks higher and higher. And since there was no need for a 20% correction in the first place, there is likely much more upside before any serious correction takes place.
To help you get in the buying mood, take a gander at our five featured stocks below. All five of these stocks score a ‘Strong Buy’ consensus according to TipRanks’ Top Stocks tool. Let’s dive in now:
Top Stocks to Buy: Adesto Technologies (IOTS)
If you are looking for cheap tech stock that’s ready to run, look no further. Adesto Technologies Corp (NASDAQ:IOTS) currently trades at just $5. Shares are up 19% in the last three months after dropping 28% on a one-year basis.
But this rally is just the beginning. Analysts are predicting that prices can surge a further 80% in the coming months.
“We maintain our Strong Buy on Adesto following a solid beat and raise quarter on the topline” wrote Needham’s Rajvindra Gill (Track Record & Ratings). This five-star analyst has a $12 price target on the stock (138% upside potential).
According to Gill, “We believe the decision to transition the business to more industrial facing could prove to the be the right one in the long-run.” Indeed, Adesto recently snapped up the more industrial-focused Echelon — a company that helps create smart cities and smart campuses.
“We believe that Echelon’s products and technologies, coupled with its powerful system and solutions approach, will increase Adesto’s content opportunities and served available market, boosting its revenue and margins” says Gill.
For example, earlier this week, Echelon launched its new SmartServer IoT edge server platform, which features built-in data management for sensors, meters and controllers in buildings. Meanwhile Adesto has just announced a tier-one fitness tracker (via the NXPI platform).
In short, this is a stock primed to outperform. And the best part? All four best-performing analysts covering the stock rate IOTS a ‘buy.’ Interested in IOTS stock? Get a free IOTS Stock Research Report.
Top Stocks to Buy: Alibaba (BABA)
From a tiny tech company to one of the world’s top stocks. Even with macro headwinds, Alibaba Group Holding Ltd (NYSE:BABA) is still a key name to watch. The stock is up 14.5% since the start of the year, and 15% down on a one-year basis.
That means the upside looks very compelling right now. According to 21 analysts, the stock has upside potential of 27% from current levels. All these analysts rate BABA a buy — so no hold or sell ratings here.
While the macroeconomic backdrop in China is certainly challenging, I believe investors should still allocate to Alibaba if seeking China exposure. This is on the prospect of a turnaround in sentiment when/if trade-related headwinds subside and economic conditions stabilize.
“Maintaining Outperform rating as we expect US-China tension to ease after recent trade talks” states top Oppenheimer analyst Jason Helfstein (Track Record & Ratings).
Helfstein continues: “Our positive thesis is based on the company’s unrivaled dominant position in its core business, its pioneer ecosystem that creates a long-standing barrier to entry, and numerous drivers.”
These include enhancing monetization and stable GMV growth outlook, as well as new growth opportunities like cloud and logistics.
Meanwhile HSBC analyst Binnie Wong has just boosted her BABA price target from $177 to $190. She is upbeat about the company’s upcoming fiscal Q3 earnings report, and expects “better growth for the core commerce division, implying earnings upside in the near term.” Get the BABA Stock Research Report.
Top Stocks to Buy: United Health (UNH)
One of the largest U.S. insurance companies, UnitedHealth Group Incorporated (NYSE:UNH) is a stellar stock that I can’t recommend strongly enough. The company is leaning heavily into technology, integrating the digital and physical realm through the flow of information.
“We continue to believe UNH shares are an optimal holding for large-cap growth managers” writes Cantor Fitzgerald’s Steven Halper (Track Record & Ratings).
Encouragingly, this is an analyst with a pretty impressive track record on UNH. He is currently tracking a 97% success rate and 27% average return per rating on this specific stock.
“UNH continues to outperform its managed care peers, which warrants a premium valuation, in our opinion” writes Halper.
Indeed, the company recently reported solid Q4 results with strong guidance for 1Q19 (helped by a lower tax rate assumption). UNH’s focus on data and analytics drives the leading performance of its health plan offerings says the analyst.
His buy rating comes with a $310 price target (for 17% upside), but that’s on ‘relatively conservative’ model assumptions. Plus the stock is already up 7% year-to-date (and flat on a three-month basis).
Overall, 12 out of 12 analysts covering the stock are bullish on UNH. That’s with a $309 average price target. Get the UNH Stock Research Report.
Top Stocks to Buy: Palo Alto (PANW)
Cybersecurity stock Palo Alto Networks (NYSE:PANW) is the number 1 large-cap for Baird’s Jonathan Ruykhaver (Track Record & Ratings) right now.
“Despite strong customer acquisition and continued in driving a higher LTV, PANW trades at multi-year low valuation” says Ruykhaver. As a result, he spies “an opportunity for sentiment/valuation improvement as new management executes to a broader platform opportunity.”
In terms of valuation, the analyst sees this growth stock spiking 23% to $250. “We believe our valuation is reasonable for a market leader successfully positioning the business to capitalize on emerging market trends and compared to peers such as FTNT (20x) and PFPT (26x) which exhibit similar growth profiles,” he explains.
Furthermore, BMO Capital analyst Keith Bachman just upgraded his rating from Hold to Buy. He also took his price target on January 22 from $205 all the way to $240 — a considerable vote of confidence.
Overall, 17 out of 19 analysts are bullish on PANW right now. This ‘Strong Buy’ stock boasts a price target of $241.42. Get the PANW Stock Research Report.
Top Stocks to Buy: Boyd Gaming (BYD)
In the last month not one, but two analysts have upgraded Boyd Gaming Corp (NYSE:BYD) stock from hold to buy. This Nevada-based company is one of the largest and most successful casino entertainment companies in the U.S. It currently owns and operates 29 gaming properties across ten different states.
One of these upgrades comes from Stifel Nicolaus’ Steven Wieczynski (Track Record & Ratings). He terms the recent multiple contraction across Gaming & Leisure stocks “misguided.” If we look at Boyd specifically, the stock is down 30% over the last six months. However since the beginning of the year shares have put on a sweet 28% sprint.
After stress testing his model for Boyd Gaming and taking a more conservative approach to estimates, the Stifel analyst still “identifies a compelling enough upside case to support an upgrade.”
In fact, Wieczynski is confident of an “outsized opportunity” for cost-driven margin improvement across the Boyd portfolio. Plus, says the analyst, a successful execution of BYD’s “multi-faceted capital allocation” should prompt a re-rating in the shares’ trading multiple.
Also worthy of note: the stock’s highest price target comes from five-star Nomura analyst Heath Curtis. On January 18, this Top 200 analyst ramped up his price target all the way from $37 to $48. From current levels that means we are talking about upside potential of 80%! Get the BYD Stock Research Report.
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.
