3 “strong buy” stocks with a sharp rise to come
Which stocks are analysts most optimistic about? Stocks with no “hold” or “sell” rating – and pure “buy hard” analyst consensus to boot.
Using the TipRanks database, we set out to identify 3 actions that garner unanimous support from the street. Not to mention that each ticker offers quite serious upside potential. Let’s take a closer look.
IMedia brands (IMBI)
Let’s start with the digital world, the virtual universe that has caused huge changes in all aspects of our lives in the past two decades alone. iMedia Brands is an interactive online media company, with a portfolio of niche home shopping brands that cater to lifestyle customers in North America. The company’s home shopping brands include ShopHQ and ShopHQ Health, ShopBulldogTV and ShopLaventa. The company also owns Float Left, an end-to-end OTT streaming service, and i3PL, a digital logistics service. Other services include online retail, for mass and luxury customers.
As a sector, online retail outperformed last year; the unique social situation imposed due to the coronavirus crisis has proven to be a boon for digital shopping. iMedia was no exception. The company saw a decline in revenue in the first quarter of 2020, but has surpassed $ 100 million at the peak of each quarter since. In the most recent quarter, 1Q21, revenue was $ 113 million, up 18% year-over-year.
Total revenue was not the only indicator of strength. The company also recorded a 350 basis point improvement in its quarterly gross margin compared to last year; the first quarter posted a 40.6% margin. During the quarter, the total number of active customers increased by 14% and the company felt confident enough to launch 34 new product brands on its home shopping channels. And to top it off, IMBI shares have risen 142% in the past 12 months.
Among the bulls is 5-star analyst Eric Wold who sees IMBI as a solid option for investors.
“With the recent stabilization and return to growth of ShopHQ’s mainnet, we believe the company is well positioned to demonstrate the strong operating leverage inherent in the streamlined programming and distribution platform. We believe that the growth potential of the “emerging” segment is not reflected in the consensus estimates, and we consider stocks to be attractively priced, ”said Wold.
Wold goes on to note that the outlook for iMedia is strong, given the demographics of its audience: “The company’s target demographics, 50-64 and 65+ continue to embrace traditional television, and we believe that the pandemic has forced these groups to become more and more comfortable shopping from home.
Based on those comments, Wold is pricing IMBI shares a buy, and its price target of $ 22 implies upside potential of around 173% year on year. (To look at Wold’s track record, Click here)
Although IMBI currently has only a few analysts tossing the hat in the ring, all are bullish on the title. IMBI’s analyst consensus rating is a strong buy, with the 3 analysts giving it their approval. The 12-month average price target is $ 20.33, which implies an increase of approximately 153% from current levels. (See the analysis of IMBI shares on TipRanks)
Genius Sports, Ltd. (GENI)
Market investors know the thrill of betting; in a way, every stock purchase is a bet. Genius Sports, the next stock we’re looking at, is a sports betting and media company, a technology company that provides software and platforms for data management and integrity services, as well as video streaming, sports leagues and bookmakers.
Genius Sports works with more than 400 sports leagues and organizations around the world, capturing, collating and archiving the latest data and results. The company’s sprot partners include some of the biggest leagues in the world, both pro and amateur, including the NFL, NASCAR, PGA and NCAA. Genius Sports also works with major betting companies, such as William Hill and DraftKings.
The company was founded five years ago, but did not go public until last April. GENI shares were introduced to the public market through a SPAC (Special Acquisition Company) merger, which saw dMY Technology Group II buy Genius Sports and start trading under the symbol GENI.
By the numbers, Genius Sports has invested more than $ 110 million in data technology, covers more than 240,000 sporting events each year and has more than 650 partnerships with leagues and sports betting. In May, the company released its first quarterly report as a public entity, for the first quarter of 2021. First quarter revenue was $ 53.7 million, up 52% from ‘year after year. The company also announced several major trade moves during the quarter, including a 6-year deal with the NFL and the acquisition of two tech companies, FanHub and Second Spectrum. These latest moves enhance GENI’s data technology capabilities.
The strong performance of the company caught the attention of Needham analyst Bernie McTernan. The analyst rates GENI a buy with a target price of $ 28. This figure implies a year-over-year increase of 56% from current levels. (To see McTernan’s record, Click here)
“We welcome the positioning of GENI, facilitating the transfer of high quality data from sports leagues to sports betting. Much of this data is proprietary and is growing in value as mobile and in-game betting proliferate. Similar to ESPN using exclusive sports programming rights to increase affiliate fees, we anticipate that GENI will be able to increase its portfolio share as the sports betting market grows globally, and GENI offers additional products to sports books such as advertising technology and streaming, ”McTernan wrote.
Obviously, McTernan’s colleagues also believe that GENI is in a good position to deliver. The stock has a strong buy consensus rating, based on a 4 unanimous buy. The forecast calls for year-over-year gains of around 72%, given that the average price target is currently $ 30.75. (See the analysis of GENI shares on TipRanks)
Anavex Life Sciences (AVXL)
With the latest stock that we’re looking at here, our focus is on the biotech industry. Anavex is a clinical-stage biopharmaceutical company developing treatments for “serious and devastating” neurological diseases. The company’s lead drug candidate, Anavex2-73 (blarcamesine), is currently under investigation as a treatment for Rett syndrome, which has no therapies available, as well as Alzheimer’s and Parkinson’s disease. .
Anavex2-73 has several Phase 2/3 clinical trials ongoing simultaneously. The AVATAR and EXCELLENCE studies are evaluating the drug as a treatment for Rett syndrome, and a review of the first safety results by the independent Data Safety Monitoring Board (DSMB) recommended that the studies continue without modification.
Regarding its studies on Alzheimer’s disease, Anavex2-73 showed an 8% improvement in the activities of daily living of the patients tested.
While advanced stage clinical studies are making waves for Anavex, the company has several additional avenues of research at earlier stages. Anavex2-73 is in preclinical and phase 1 research for several other conditions, including fragile X syndrome. And the company has three additional drug candidates in preclinical research, ranging from dementia to depression to stroke.
Soumit Roy, 5-star analyst at Jones Trading, has an optimistic view of Anavex, based on the company’s early clinical results.
“Anavex has shown remarkable cognitive benefits over the longest duration seen among its peers … We expect to see positive 12-month data from a phase 2b / 3 randomized trial in approx. 450 patients in mid-2022 and could see data prior to 1Q22. The early data on Parkinson’s disease were encouraging: “2-73 improved basic cognitive functions and dramatically improved episodic memory in patients with parkinsonian dementia,” noted Roy.
The analyst summed up: “We believe the implicit valuation of Anavex barely includes opportunities in the RTT and the recent appreciation in the share price is mainly due to a broader interest in the disease space. Alzheimer’s. & mid-2022, and launch of a pivotal trial in Parkinson’s disease in 2H21, we are initiating coverage on Anavex shares with a BUY rating … “
Along with that buy rating, Roy sets a price target of $ 35 which indicates stock growth of around 74% for next year. (To see Roy’s record, Click here)
Again, we’re looking at a stock with a unanimous rating of strong buy consensus, based on 3 recent positive reviews. AVXL shares have an average price target of $ 26.50, which implies a 30% increase from the current price of $ 20.27. (See the analysis of AVXL shares on TipRanks)
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Warning: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.