3 Monster Growth Stocks with Potential for Further Profits
Ultimately, investors want to see returns. To achieve this goal, seasoned Wall Street watchers often turn to one strategy over and over again: investing in growth. A solid growth game is a name that seems poised to not only grow above average, but also to reward investors well over the long term. Investors roll up their sleeves and pound the pavement on Wall Street for tickers with impressive long-term growth prospects. Having a goal in mind is one thing, but focusing on those stocks that are geared for profit in the years to come is an entirely different story. With that in mind, we went looking for investment opportunities with strong growth narratives. Using the TipRanks database, we were able to identify 3 buy-rated tickers, each of which has significant upside potential, according to Wall Street analysts. Cowen Group (COWN) We’re starting with Cowen Group, a New York-based investment bank. Cowen provides investment management and broker dealing services and is known as a risk taker who is ready to enter disruptive sectors early on. Cowen was an early booster for high-tech stocks on dot.com and more recently in the cannabis sector. The main activities of the bank are in the USA and Great Britain. The bank’s recent equity growth has been extreme. Since that time last year, COWN shares are up 534%. The stock’s appreciation has increased the company’s market capitalization to over $ 1 billion and has brought solid returns for investors during the troubled corona crisis. After a turndown in the first quarter of 20, the company posted three consecutive quarters of year-over-year revenue and profit growth. These gains were particularly impressive in the second and fourth quarters. Looking at the most recent quarter of 420, Cowen posted a record quarterly profit of $ 90.5 million on a GAAP basis. Total annual income was $ 209.6 million. The gains were driven by record performance in both investment banking and brokerage. Cowen’s performance impressed 5-star analyst Sumeet Mody of Piper Sandler, who wrote, “We remain very positive on COWN after the strong results from Q420 earnings. Following the company’s continued and increased brokerage and banking activity throughout 2020, earnings outlook has improved significantly as banking pipelines remain robust and brokerage started the year strong, with higher-than-expected investment banking and brokerage revenues and lower expense ratios. “To that end, Mody rates Cowen’s stock as overweight (i.e. buy) and its target price of $ 71 suggests a possible upward trend of 78% for a year from current levels. (To see Mody’s track record, click here.) The Piper Sandler analyst is the bullish runaway here, but Wall Street largely agrees with him on Cowen, like the 3: 1 split in favor of buy-to-hold Reviews shows. The price of the stock is $ 39.86, and the average target price of $ 47 implies an upward movement of ~ 18% for the year ahead. (See COWN stock analysis on TipRanks) Commercial Vehicle Group (CVGI) Talk about the automotive industry, and of course you’ll be talking about the automotive companies. But the industry is more than that – there is a whole network of parts suppliers and service companies supporting the automakers, and the commercial vehicle group lives in that niche. The company provides a wide variety of services to the automotive sector, including warehouse automation, robotic assemblies, seating systems, plastic products, EV assemblies, and mechanical assemblies. Commercial Vehicle Group’s customers include the commercial vehicle industry, electric vehicle manufacturers and the e-commerce warehouse industry. The big story for CVG was the company’s warehouse automation segment. The corona crisis has sparked a massive push towards e-commerce, and CVG has benefited from that move. The company’s warehouse automation segment saw higher volume in 2020 – and greater efficiency due to cost-cutting measures over the course of the year. Revenue for the fourth quarter was over $ 216 million, up 14% year over year. Operating income for the quarter was $ 5 million, a profit of $ 9.3 million year over year. The quarterly results marked the company’s first quarterly year-over-year gains in 2020 and came after the company’s stocks outperformed consistently over the year. CVGI’s stocks are up 543% in the past 12 months – far more than the broader markets. CVG earlier this month announced a partnership with Xos, a commercial manufacturer of electric vehicles, to develop sustainability initiatives. 5-star analyst Christopher Howe, who covered that stock for Barrington, was impressed with the company’s backlog in new business. “The company had net new business profits of more than $ 100 million on an annualized basis in 2020, largely driven by warehouse automation and electric vehicles, which are expected to be converted this year. Going forward, it is expected to generate additional net new business gains of $ 100 million in 2021, ”said Howe. The analyst added: “[EV] Activity is robust [and] The company expects these programs to remain in the development phase through 2021 and will translate into revenue later once the product base has stabilized. In terms of warehouse automation, according to Logistics IQ, the demand for warehouse automation products is expected to grow by around 14% per year through 2026. “Given these comments, Howe rates CVGI stock to outperform (ie buy) with a target price of $ 14, indicating an upward trend of 39% for a year. (To see Howe’s track record, click here.) There have been two analysts’ ratings for this company and they both agree: CVGI is a “Buy” stock. The shares have an average price target of $ 14, which is in line with Howe’s. (See CVGI stock analysis on TipRanks.) Zedge, Inc. (ZDGE) We’re going to wrap up our look at growth stocks with a software industry citizen, Zedge. This company offers customization options for smartphones that have proven to be very popular. Zedge’s platform offers wallpapers, ringtones, app icons, widgets and notification tones, among other things. The Zedge app offers over 450 million installations and more than 30 million monthly active users – important measurement data in the universe of smartphone apps. Perhaps the most telling statistic, however, is: Zedge has been one of the 25 best free apps on Google Play for seven years. That popularity gives a software company a solid foundation, and Zedge’s stocks have taken advantage of it. The stock is up a staggering 932% in the past 6 months, growth that coincided with increasing sales. Zedge posted revenue growth for five consecutive quarters compared to last year. The company announced its results for the second quarter of fiscal 21 on March 15, and the results were record-breaking for the company. Revenues were $ 5.3 million, net income was $ 2.3 million, and earnings per share were 17 cents. Monthly active users reach 35.4 million. The sales figure corresponded to an increase of 101% compared to the previous year. The EPS rose from just 1 cent in the previous year. Following these gangbuster results, Zedge revised its sales forecast for full year 2021 to a forecast of 75% to 80% growth. Maxim Group analyst Allen Klee is impressed with Zedge and sees a clear path for the company. “Zedge is accelerating the growth of its advertising platform and new offerings. We expect the company to strengthen its ecosystem so that the 35 million monthly active users become more involved in the platform, resulting in better engagement and monetization. We also anticipate that in 2021 there will be catalysts for the growth of Shortz’s short storytelling and for new entertainment-style podcasts, ”said Klee. Based on all of the above, Klee is giving a buy rating on ZDGE shares along with a price target of $ 24. That goal gives Klee confidence in Zedge’s ability to grow 57% over the next twelve months. Some stocks fly under the radar, and ZDGE is one of them. Zedge’s is the only recent analyst rating for this company and it’s downright positive. (See ZDGE stock analysis on TipRanks.) To find great ideas for trading growth stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.