Salesforce signage outside an office building in New York City.
Scott Mlyn | CNBC
With markets rising sharply since the start of the year, the bulls and bears appear to have completely diverged in their assumptions about the end of the coming year. Some see a potential for an increase in the dot com bubble, and others only expect a decline.
However, it is of paramount importance for any long-term investor to take into consideration the analysis of company fundamentals when selecting stocks.
Therefore, at TipRanks, we’ve swept aside the noise and found stocks that some of Wall Street’s most specific professionals have chosen as long-term winners. Let’s take a look at what the fundamentals and top analysts have to say.
With few signs of slowing down, one of the fastest growing industries over the past two years has been cloud computing. All new digital business solutions require security, and CrowdStrike Holdings, Inc. (CRWD) has capitalized on its niche in demand. The cybersecurity firm is seeing high levels of corporate spending on security, a positive move ahead of its expected results release on December 1. (See CrowdStrike share analysis on TipRanks)
Alex henderson of Needham & Co. recently published its hypothesis on the tech company, writing that “CrowdStrike’s platform offers a powerful blend of frictionless deployment and testing, exceptional scalability, and these translate into a rapid growth which we believe is more than 50% sustainable for the next 3-5 years. ” He was confident enough to state that “investors will be rewarded for buying and holding these shares.”
Henderson valued the stock to buy and gave it a target price of $ 340 per share.
On the earnings side, the five-star analyst expects another impressive quarter and an increase in forecasts from CrowdStrike, which he describes as currently being successful in his field. Meanwhile, the increase in cyber attacks and large-scale hacks around the world have increased the urgency and demand for companies like CrowdStrike.
Competition concerns have rocked investors recently, and strong selling pressure has pushed the stock down to reduced levels. Henderson considers this reaction to be overblown, as most of the key metrics show strong and robust growth, such as direct-to-consumer sales and total calculated billings.
Of more than 7,000 analysts, TipRanks ranks Henderson 46th. His stock picks were successful 72% of the time and earned him an average of 52.2% on each.
Another name that quickly became a pandemic winner is Selling power (CRM), as digital transformation at the enterprise level has taken hold on a global scale. Cloud-based customer relationship management software has seen its valuation increase dramatically over the past two years, although recently its shares have suffered a price drop. Some analysts now see a buying opportunity in tech stocks. (See Salesforce.com website traffic on TipRanks)
Brent Thill of Jefferies Group has demarcated its position on the stock, saying the company is heading for a likely profit for its Nov. 30 profits. The analyst has identified high levels of customer satisfaction among his users, along with additional statistics indicating a long-term demand for Salesforce’s services.
Thill valued the stock as a buy and raised his price target to $ 360 from $ 325.
According to his data, the analyst reported that 83% of Salesforce customers see productivity in their pipelines. In addition, there has been a healthy acceleration with the ecosystem of partners favored by the company.
The five-star analyst added that “CRM has managed to take a break from large mergers and acquisitions, focusing on integrating Slack and providing more margins.” He is encouraged by the stock’s outperformance against a similar software-based ETF, IGV.
Financial aggregator TipRanks’ website currently ranks Thill 181st out of more than 7,000 analysts. He was successful 65% of the time and brought in an average of 36.3%.
Despite a third quarter of persistent levels of COVID-19 in Western Europe and the United States, global travel trends have gained momentum and are expected to take off even more once restrictions are relaxed. Booking Holdings Inc. is well positioned to capture this tailwind (BKNG), which has capitalized on the industry’s move towards automatic booking of travel and transportation experiences, and recently posted particularly impressive quarterly earnings. (See Reservation risk factors on TipRanks)
Ivan Feinseth of Tigress Financial Partners wrote optimistically that âBKNG’s market-leading position, enhanced by its strong brand value and diverse global presence, as well as its strong execution capability, technologically advanced platform and realization of the value of its complementary acquisition strategy, will continue to drive a rebound in return on capital. ”
Feinseth priced the stock at Buy and reiterated its price target of $ 3,150.
Strong demand for booking hotels, flights and rental vehicles instilled confidence in the five-star analyst. He also noted that the company has been successful in mitigating the impacts of the pandemic troughs by maintaining a strong balance sheet, which has enabled it to invest in new initiatives and innovations.
Additionally, BKNG’s acquisitions and investments have facilitated the expansion of its’ travel ecosystem with recent ground travel services, integrating ground travel with hotel reservations and expanding its car rental business to include alternative means of transport â.
Feinseth holds 50th place out of over 7,000 analysts on TipRanks. He was successful 75% of the time with his stock picks and got an average of 38.4% per score.
The global semiconductor shortage has hit many major industries hard, with auto and smartphone makers scrambling to contain the impacts. Meanwhile, many companies that design and produce the chips themselves are experiencing high levels of demand and have long backlogs of reservations to fill. Analog Devices, Inc. (ADI) falls into this case and, despite a transitional hurdle on the supply side, is now ready to move forward with increased capacity and high prices for its products. (See Analog Devices Hedge Fund Activity on TipRanks)
Quinn Bolton of Needham & Co. released its view, saying that âthrough organic development and strategic acquisitions, we believe Analog Devices has built the preeminent franchise in precision analog semiconductors, one of the fastest growing segments. most attractive of the entire semiconductor industry â.
Bolton maintained a buy rating on the stock and confidently raised his price target to $ 205 from $ 200.
The five-star analyst explained that difficulties with Malaysian sea routes impacted by COVID-19 are largely bypassed and no longer represent a major concern for the company. In addition, while capacity constraints can weigh on production in the short term, ADI is increasing its capacity to meet high demand.
Looking back and past performance, ADI reported a third quarter full of solid earnings and an encouraging increase in guidance. Going forward, orders remain at healthy levels and the company’s growth path has become clearer. Bolton was boldly optimistic about the company, writing that Analog Devices is “a staple in any semiconductor portfolio.”
TipRanks calculated that Bolton was No. 1 out of more than 7,000 other financial analysts. His grades were successful 88% of the time and he got an average of 100.9% on each one.
As the COVID-19 pandemic has pushed workers back to the country, Dell Technologies Inc. (DELL) saw its valuation rise as the home office boosted computer sales. Now, as those same employees return to the office, corporate level purchasing contributes to that same metric. The computer technology company recently released strong third quarter results, beating Wall Street consensus estimates on revenue and EPS despite a tough comparison to its previous report. (See Dell Technologies Date of results and reports on TipRanks)
Amit Daryanani Evercore ISI explained that the company is mitigating challenges posed by supply shortages and strengthening its balance sheet. Dell has enjoyed a productive level of free cash flow despite increasing its capital spending.
Daryanani rated the stock as a buy and added a price target of $ 63. This target has been raised slightly from its previous one at $ 62.
The five-star analyst went on to write that the operational leverage provided by Dell’s strong balance sheets should pave the way for share buybacks in the future.
Dell has experienced expansion in both its infrastructure and network offerings and in its commercial IT product segments. As the fourth quarter approaches, Daryanani is confident that Dell will meet its targets.
The analyst asserted his bullish stance, saying he believed “the company is performing well in an increasingly difficult sourcing environment and believes its superior supply chain management has been a driver of the gains. parts “.
Daryanani is currently ranked # 155 out of over 7,000 professional analysts. His stock picks were correct 73% of the time, and they earned him an average of 35% per.
Disclosure: At the time of publication, Brock Ladenheim does not have a position in any of the titles mentioned in this article.
Disclaimer: The information in this article represents the views and opinions of the author only, and not the views or opinions of Tipranks or its affiliates, and should be considered informational only. Tipranks makes no warranty as to the completeness, accuracy or reliability of this information. Nothing in this article should be construed as a recommendation or solicitation to buy or sell securities. Nothing in the article constitutes legal, professional, investment and / or financial advice and / or takes into account the specific needs and / or requirements of an individual, and nothing in the article constitutes an full or complete statement of the questions or topic discussed therein. Tipranks and its affiliates are not responsible for the content of the article, and any action taken on the information contained in the article is at your own risk. Linking to this article does not constitute an endorsement or recommendation of Tipranks or its affiliates. Past performance is no guarantee of future results, prices or performance.