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3 “Strong Buy” stocks from the best analysts on Wall Street
Almost two months into 2021, the market appears to be undecided where to go next. In fact, many investors fear that the market will have to make serious corrections, especially given the wide range of highly rated stocks to choose from. It’s an environment that requires more cumbersome stock picking. Or maybe it is wise to turn to the best during such times to find out where the next opportunity is. And at best we mean the crème de la crème – the best analysts on Wall Street. We’ve got the details of 3 stocks that the top 3 analysts on the street recently identified as being what to watch out for over the next 12 months, according to the TipRanks database. All three come from different sectors but have one common characteristic. They are classified as strong buys by the analyst consensus. Avalara, Inc. (AVLR) We start with Avalara, a software company developing cloud-based systems for international tax advisors, making it a much-needed product for any business with international clients. Avalara’s products automate corporate tax compliance and integrate corporate, tax and accounting records apps – all of the services required to keep small and medium-sized client businesses in compliance with local and international tax regulations. The COVID pandemic – and the social bans and travel restrictions put in place to fight this pandemic – have made it difficult for small businesses to reach their tax professionals – and suddenly made Avalara’s products more valuable in tax automation. The company’s stock has risen since the market downturn last winter, and is up 205% since hitting its low point in March last year. These stock gains were accompanied by steady sales growth. The final quarter, reported in fourth quarter 20, had revenue of $ 144.76 million, up 13% from the previous quarter and 34.5% year over year. Even better for investors looking for strength, Avalara announced in December that it would take over German tax software company INPOSIA. The financial terms of the deal were not disclosed, but INPOSIA brings additional international tax expertise, access to Europe’s largest economy and 50 employees – all assets for Avalara. Piper Sandler analyst Brent Bracelin is number 1 out of more than 7,200 analysts and sees the takeover of INPOSIA as a strong step for Avalara in adapting to the European compliance scene. “New e-invoicing laws could prove to be a regulatory catalyst. Several European countries have plans to modernize the 20-year-old VAT system to switch to digital invoicing and real-time reporting, ”said the 5-star analyst. “The takeover of INPOSIA serves as an important digital bridge to the tax authorities. The acquisition of a German software company, expected to close in the first half of 2021, could prove to be a new tool for Avalara to take advantage of all of these new electronic invoicing laws … ”Bracelin believes international distribution is the next leap for Avalara incremental growth. Consistent with this outlook, the analyst rates the stock as overweight (ie buy) and his target price of $ 210 implies an upward movement of 26% for the coming year. (To see Bracelin’s track record, click here.) Of the 11 analysts who have rated Avalara over the past few weeks, 10 agree to Bracelin that this is a stock to buy, and this split of 10 buys into 1 hold gives the company a strong buy analyst consensus rating. Avalara shares are priced at $ 166.60, and the average price target of $ 209.45 suggests that the ~ 26% growth potential is at that level. (See AVLR stock analysis on TipRanks) Axcelis Technologies (ACLS) Next, Axcelis is a small-cap support company in the semiconductor industry. Axcelis manufactures manufacturing equipment that is essential for the manufacture of semiconductor chips. Axcelis is a specialist in ion implantation technology, which is essential to the chip fab process. In terms of revenue, Axcelis reported $ 122.2 million for the fourth quarter of 20, up 13.5% year over year, beating estimates by $ 3.8 million. The EPS in the fourth quarter rose from 0.29 cents a year ago to 43 cents and thus also exceeded the reputation of the street by 13 cents. The beat was the last in a long line of outperformance results. Axcelis has exceeded its forecasts in each of the last 9 quarters. In his review of Axcelis, Needham’s Quinn Bolton, ranked second largest analyst on Wall Street by TipRanks, believes the company’s product line and sales outlook support management’s optimism. “[We] are more confident about the strength and visibility of WFE (Wafer Fab Equipment) in 2021 and now expect the company to generate $ 500 million in full year sales. We are also increasing our estimates for 2022 and now believe that ACLS will meet its revenue target of $ 550 million in 2022, driven by two straight years of DRAM WFE growth, continued strength of mature nodes and equity gains, ”said Bolton. These comments support Bolton’s buy rating and his target price of $ 44 implies an uptrend of ~ 13% over the next 12 months. (To see Bolton’s track record, click here.) Bolton’s Wall Street counterparts largely agree with his stance on ACLS – as evidenced by the stock’s consensus rating of strong buy with a unanimous 5 reviews. The average price target of $ 46.80 is a bit more bullish than Bolton’s and suggests an upward movement of ~ 20% from the current share price of $ 39.02. (See ACLS stock analysis on TipRanks) TFF Pharmaceuticals (TFFP) We are moving from the semiconductor industry to the biotech sector, to TFF Pharmaceuticals. The TFF stands for Thin Film Freezing, the patented technology platform of Biopharma, on which the development of its innovative drugs is based. The platform makes it possible to create dry powder formulations of active ingredients that are currently administered orally and convert them into inhalable therapies. Among a selection of next-generation versions of drugs available, the two most advanced candidates are about to enter mid-stage trials in the medium term. HC Wainwright analyst Ram Selvaraju ranks 3rd among Wall Street analysts and believes they can act as the main catalysts for the stock. One candidate is TFF VORI, an inhaled dry powder version of voriconazole, which is intended for the treatment of invasive pulmonary aspergillosis (IPA), a dangerous pulmonary fungus disease that can cause a death rate of 90% in some patient populations. Selvaraju anticipates that TFF will initiate Phase 2 development of TFF Vori in 1H21 and expects the data to be up to date by mid to late 2022. This could also lead to a phase 3 study or an NDA submission in the next year, “if the central program is not required by the FDA. “The second candidate that is making progress is TFF Tac-Lac, an inhaled dry powder intake of tacrolimus designed to prevent organ transplant rejection. A phase 2 program could start sometime this year with the option of data readings in 2022. If the phase 2 data is “sufficiently meaningful,” says Selvaraju, a phase 3 program may not be required. Selvaraju believes the company could bring both TFF Vori and TFF TacLac to market in 2024 and “be profitable this year”. The 5-star analyst summed up his bullish thesis and said, “We believe that there is still significant upside potential for the most advanced candidates in the clinical stage and that the applicability of the pipeline and platform continues to be underestimated in the early stages of the company.” Accordingly, Selvaraju rates TFFP shares with a Buy and a price target of $ 31. Investors can achieve a 95% profit if the analyst’s thesis prevails. (To see Selvaraju’s success story, click here.) TFF has few analysts tracking its progress, but all of them support its success. The stock has a strong buy consensus rating based on 3 purchases. The average price target is $ 28.33, indicating gains of ~ 78% in the coming year. (See TFFP stock analysis on TipRanks.) To find good ideas for trading 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 analysts presented. 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.