Tracking information on which stocks to buy can be a daunting and time-consuming process. One way to streamline it is to consider analyst EPS, growth and other forecasts, as well as price targets.
Analysts are paid to thoroughly review and report a company’s financials to determine a stock’s worth and likely future price. These reports are often published or distributed among institutional clients like banks. Investors can refer to them to identify which stocks to buy by looking for those with prices that diverge notably from their target price.
Naturally, not all analysts are equally skilled. Some have stronger track records than others. Coverage is also specialized rather than universal, as reviewing every stock would be impossible.
While researching specific analysts may seem to defeat the purpose of saving time, a more pragmatic approach is to consider the average price target set by covering analysts. Though individual views will vary, consensus targets smooth out inconsistencies.
The following three stocks trade at least 40% below average price targets and may represent attractive investment prospects as they are poised to see solid grow.
Zynex (ZYXI)
Zynex (NASDAQ:ZYXI) is the first choice in this list of stocks to buy. It produces electrotherapy devices used in pain management, heart monitoring and neurological diagnosis. The medical device manufacturer’s stock price has fallen 17% year-to-date (YTD). However, it had already peaked after Q4 earnings and dropped only after Q1 earnings showed sales declines due to a cyber incident affecting payments.
Management has affirmed guidance and believes orders will return later in the year. Sales are expected to increase by 23.10% this year and 23.80% next year. Growth estimates reveal a staggering 60% upside for the next quarter and 80.40% next year. This compares with the S&P 500’s 11% and 12.10%, respectively.
The low ZYXI share price has sweetened its affordability with a forward price-to-earnings (P/E) ratio of 18x. This is under half the 33.6x average for its sector. Analysts remain optimistic about the company and forecast a substantial upside, with an average price target that makes Zynex one of the top stocks to buy. ZYXI stock currently changes hands at $19.88 per share, suggesting over 118% upside from current levels.
Hilton Grand Vacations (HGV)
Hilton Grand Vacations (NYSE:HIL), the former unit of Hilton Worldwide (NYSE:HLT) that manages the timeshare business, is the second stock to buy. The company is expected to perform strongly in 2024 as it is a record travel season.
Despite this positive development, the HIL stock price has remained virtually flat for the year after investors soured on the market during Q2. Earlier in the spring, disappointing data appeared, such as expectations for high Federal Reserve interest rates and slower air traffic in April versus March. However, analysts viewed this as a buying opportunity, and all now recommend buying the stock.
Currently trading at a P/E ratio of 18.8x, well below the benchmark S&P 500 average of 28.2. Analysts see a significant upside potential over 44% upside, with Hilton Grand poised for gains with an average price target of $57.57 per share. In fact, all targets are above the current stock price, which makes HIL one of the stocks to buy. Moreover, growth estimates for next year show an increase of 55.90%.
Celsius Holdings (CELH)
Celsius Holdings (NASDAQ:CELH) is the final stock to consider buying on this list. It has become the third-largest energy drink brand in the U.S. Yet, it has further potential for increased market share.
Analysts remain optimistic despite CELH stock’s already-rising price. While shares are up only 10%, institutional investors continue purchasing them, indicating confidence in further appreciation. This year’s and next year’s growth estimates show increases of 41.60% and 32.10%. Earnings are expected to rise to 1.44 from 1.09 per share, which is only slightly lower than the estimate of 1.55 three months ago.
Fourteen of sixteen analyst ratings classify CELH stock as a buy and the remaining two as “hold.” Notably, all analyst projections exceed the current stock level. The average price target stands at $91.88 per share, representing a 53% upside from current levels. This outlook, along with consecutive EPS beats, reinforce the case for including Celsius among stocks to buy.
On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
