These 5 Stocks Should Deliver Strong Returns Even In These Choppy Market Conditions

Lorimer Wilson July 3, 2018 Comments Off on These 5 Stocks Should Deliver Strong Returns Even In These Choppy Market Conditions 1,272 Views

Goldman Sachs has upgraded its High Sharpe Ratio basket of stocks – stocks the firm believes can deliver strong returns even in choppy market conditions – and this article further refines Goldman Sachs’ list using the latest ratings from over 4,800 analysts of over 5,000 US-listed stocks from TipRanks. The upshot is you can quickly pinpoint the best ‘Strong Buy’ stocks with big growth potential.

This version of the original article by Harriet Lefton has been edited for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read

…Let’s take a closer look now:

1. BorgWarner (NYSE:BWA)

Auto-parts marker BorgWarner is buzzing right now. The stock has just been upgraded by Goldman Sachs from Hold to Buy.

Both Robert W Baird’s David Leiker and Oppenheimer’s Noah Kaye single out BWA as a ‘Top Stock Pick.’

Kaye writes: “We view BorgWarner as a differentiated technology solutions provider for efficient vehicle propulsion. As the global auto industry evolves to meet increasingly stringent emissions regulations, we expect BorgWarner to benefit.”
Meanwhile Leiker sees shares spiking 69% from current levels. He tells investors not to let the CEO transition faze them.

This ‘Strong Buy’ stock has 4 recent buy ratings and a $65 average analyst price target (44% upside potential). You can click on the graph below for further insights into the latest ratings:

(Click on image to enlarge)

2. Delta Airlines (NYSE:DAL)

Warren Buffett’s favorite airline stock Delta Air Lines also boasts 11 consecutive buy ratings from the Street.

Top Imperial Capital analyst Michael Derchin believes DAL is on track to up its fiscal 2018 revenue outlook…due to strong pricing power in key domestic hubs; improving business yields; and impressive international results. As for higher oil prices- a key concern for airlines- this hasn’t offset Derchin’s revenue bullishness (hence the $70 price target). From current levels, his price target indicates 37% upside potential.

(Click on image to enlarge)

Follow the munKNEE.com – Voted the internet’s “most unique” financial site! (Here’s why)

3. Halliburton (NYSE:HAL)

HAL is one of the world’s largest providers of products and services to the energy industry.

BMO Capital analyst Daniel Boyd calls the stock his ‘favorite large-cap’ in this space. He notes that U.S. pressure pumping is strengthening, while the company’s international outlook may prove too conservative.
Indeed, firming oil fundamentals have just prompted Wells Fargo’s Judson Bailey to boost his price target from $58 to $65 (43% upside potential). He is becoming increasingly bullish on the prospect for a multi-year recovery in offshore spending from 2019.

As we can see below, nine analysts have published buy ratings on HAL in the last three months.

(Click on image to enlarge)

Like us on Facebook or share this article with a friend

4. Equinix (Nasdaq:EQIX)

Internet-connection specialist Equinix “has virtually become the switch for the Internet/cloud” according to Oppenheimer’s Timothy Horan.

Horan has a $525 price target as “EQIX benefits from its unique, highly connected global platform that is attractive to enterprises deploying hybrid cloud strategies.”
Credit Suisse’s Sami Badri has reiterated his Buy rating. “We believe the company’s interconnection strategy provides a wide competitive moat making them extremely difficult to compete against and replicate.”

(Click on image to enlarge)

For the latest – and most informative – financial articles sign up (in the top right corner) for your FREE tri-weekly Market Intelligence Report newsletter (see sample here)

5. Albemarle (NYSE:ALB)

Albemarle is one of the world’s leading specialty chemical stocks. Its prime product is lithium- a key component of automotive batteries.

Oppenheimer analyst Colin Rusch writes,
- “We believe that ALB deserves a premium multiple given the multi-year growth opportunity we see in lithium.”
- “ALB’s combination of specialty chemical expertise, security of supply, and resilient customer contracts put the company in a de-risked position to benefit from technology evolution.”

Rusch’s $157 price target indicates huge upside potential of over 65%. Even the Street’s average analyst price target translates into 39% upside.

(Click on image to enlarge)

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

Related Articles From the munKNEE Vault:

1. Here Are 10 Low PE Stock Picks For The Defensive Investor

This article identifies the 10 lowest PEmg (price/normalized earnings) companies reviewed by ModernGraham. Each company has been determined to be undervalued or fairly valued and suitable for the Defensive Investor according to the ModernGraham approach.

2. Price-to-Book Ratio Valuations: 6 Stocks That Met Our Screening Parameters

Value investing offers an opportunity to enter the market and grab stocks that have otherwise been overlooked by the majority of investors and are thus trading at cheap multiples. Although price to earnings (P/E) and price to sales (P/S) valuation tools are more commonly used for stock selection, the price-to-book ratio (P/B ratio) is also an easy-to-use metric for identifying bargain stocks with high-growth prospects. This article identifies 6 of the 10 stocks that met or surpassed our screening parameters.

3. 7 GARP Stocks Offering Solid Returns In the Near Term

A Growth At a Reasonable Price (GARP) strategy helps investors gain exposure to stocks that have impressive prospects and are trading at a discount. Using the GARP principle, we have run a screen to identify 7 stocks that are likely to offer solid returns in the near term.

4. Best 4 Defensive Stock Sectors & Best Stock In Each

Morgan Stanley has been busy recently. A team of over 30 analysts has just put together a list of the best defensive sectors, based on almost 25 years of market data. This article delves into four sector stock picks highlighted by the firm – stocks that can still deliver even in times of volatility or slowing returns – and why these four stocks also have the backing of the Street in general. Let’s take a closer look now.

5. Expect 15% – 28% Annual Returns From These 10 Dividend Achievers

Investors looking for high-quality businesses should consider dividend growth stocks. The beauty of strong dividend growth companies is that they pay their investors rising streams of dividend income, regardless of the direction the market is going. This article will discuss the top 10 Dividend Achievers, ranked according to their expected returns.

6. These 5 Consumer Discretionary ETFs Should Benefit From Record High Consumer Confidence

The confidence level among Americans reached an all-time high in April, suggesting strong economic growth in the coming period…With rising consumer confidence it is expected that consumer discretionary ETFs will perform well. Investors who intend to benefit from this sector should focus on the ETFs mentioned below.

7. 5 Low Price-To-Book Value Stocks To Buy Now

In value analysis the underrated price-to-book ratio (P/B ratio) is an easy-to-use valuation tool for identifying low-priced stocks with exceptional returns. Here are 5 such stocks you should seriously consider buying now.

8. 4 Stocks With BIG Growth Prospects

Even in the current climate, savvy investors can still find promising stocks with big growth prospects…The stocks covered below all boast sales growth of over 20%, based on the Street’s 2019 estimates. These are the stocks to turn to if GDP growth begins to slow.

9. These 5 Top Dividend Stocks All Share A ‘Strong Buy’ Rating

Dividend stocks are a…[great] way to ride out the choppy markets right now [and we have identified 5 such stocks that all] share a ‘Strong Buy’ rating from the Street using TipRanks’ powerful stock screener so, without further ado, let’s dive in and take a closer look at what the Street’s top analysts are saying about these five stocks right now:

10. These 10 “Graham Number” Stocks Should Be Great Investments

The following 10 companies have demonstrated strong financial positions through passing the rigorous requirements of the ModernGraham Investor and show potential for capital growth based on their current price in relation to intrinsic value. As such, these Graham Number stocks may be a great investment if they prove to be suitable for your portfolio after your own additional research.

11. The Solid Earnings Growth Of These 5 Stocks Should Result In Stupendous Returns

Earnings estimates embody analysts’ opinions of factors such as sales growth, product demand, competitive industry environment, profit margins and cost control. Thus, earnings estimates serve as a valuable tool while taking investment decisions. Earnings estimates also help analysts assess the cash flow to determine the fair value of a firm.

12. Here Are the Top 5 “Breakout” Stocks (out of an universe of 7,875)

Picking breakout stocks is one of the most favored methods for those utilizing an active investing approach since this strategy promises superlative returns. Using specific screening parameters Zacks identified 9 prospective candidates out of an universe of 7875 and this article highlights the top 5 stocks that meet their criteria.