Betting on Momentum? 2 ‘Strong Buy’ Stocks to Keep an Eye On

General Grant understood that in life, momentum counts. He probably would not have phrased it that way, but his campaigns showed it – he always pushed forward, and turned any Read More... The post Betting on Momentum? 2 ‘Strong Buy’ Stocks to Keep an Eye On appeared first on TipRanks Financial Blog.

Betting on Momentum? 2 ‘Strong Buy’ Stocks to Keep an Eye On

General Grant understood that in life, momentum counts. He probably would not have phrased it that way, but his campaigns showed it – he always pushed forward, and turned any event toward meeting his long-term goals. He created momentum, and put it to his army’s service.

Market investors can make use of that same pugilistic attachment to momentum. Find a stock that has been on a roll, whose fundamentals are strong, and keep with it – that’s the essence of momentum investing. It runs in the face of the old cautionary adage that past performance does not guarantee future returns, but as Grant could tell you, you won’t succeed if you keep turning aside.

With this in mind, we used TipRanks’ database to look up two stocks that saw their share price surge to recent record highs. And best of all, some analysts believe the stock has a way to go yet, while both have received overwhelmingly bullish praise from the Street, enough to earn a “Strong Buy” analyst consensus. Let’s take a closer look.

Jones Lang Lasalle, Inc. ()

Based in Chicago, Jones Lang Lasalle is a globe-spanning real estate and investment management company, offering a range of services to high-net-worth customers. Services include agency leasing, finance, project and property management, tenant representation, valuations, and more. The customer base includes institutional and retail investors, corporate clients, and the very wealthy. This is a high-end company, tailoring real estate services to a well-heeled clientele.

JLL benefits from a clientele that has both wealth to spend and need for professional management of it, no matter what the overarching economic conditions. This basic fact underlies the company’s revenue performance over the past two years, including the COVID crisis and recession. JLL’s quarterly revenue for the last 9 quarters has stayed between $3.7 billion and $5.4 billion, with a pattern of relative lows in Q1 gradually rising to relative highs in Q4. EPS has shown a similar pattern, albeit with greater ‘noise’ in the data.

The company’s business generates substantial cash, and in 2020 JLL saw a record level of $1.11 billion in cash from operations. This was a 131% increase from 2019, and made more impressive by coming during the COVID year. The company registered strong cash collections on its receivables during the year. 2020 also saw substantial reductions in company debt, from $670 million at the end of 2019 to $192 million at the end of December 2020.

With such a firm financial foundation, it’s not surprising that JLL has also seen strong share price momentum. The stock is up 124% in the last 12 months and 50% since the turn of the year – far above the 17% returns notched by the S&P 500.

Covering JLL for Wolfe Research, Andrew Rosivach is impressed by its recent growth and likely prospects. He initiates his coverage with an Outperform (i.e., Buy) rating, and his $332 price target implies a one-year upside of 49%.

Backing his stance, Rosivach writes, “We assume cyclical growth from transaction-based business lines (i.e. leasing and capital markets) will lead to outsized earnings growth in the near term. If volumes do not recover at the pace that we expect, earnings growth may not be as substantial. However, given tight credit markets, current conditions are constructive for growth particularly in capital markets. (To watch Rosivach’s track record, .)

Wall Street is clearly bullish here, and the Strong Buy consensus rating is based on 4 positive reviews. The shares are priced at $222.57; their average price target of $248 suggests room for 11% upside in the next 12 months. (See JLL’s stock analysis at TipRanks.)

Arvinas Holding Company ()

The second stock we’ll look at, Arvinas, is a clinical-stage biopharma company engaged in the development of protein degradation therapeutics. This is a fascinating field, and a new class of drugs tailor-made to target specific disease-related proteins. Proteins are present in all biological reactions at the cellular level, and the human body has natural processes for disposing of denatured proteins; Arvinas’ technique is to harness those protein disposal systems to cause degradation and breakdown of disease-causing protein molecules. The company has a proprietary development platform, PROTAC, to engineer proteolysis targeting chimeras.

Over the past year, Arvinas has seen its shares spike twice, once in December and once in July. The December spike coincided with news that ARV-110 and ARV-471, the company’s most advanced drug candidates, had both shown positive results in early testing, the former as a treatment for prostate cancer and the latter as a breast cancer therapy. Both drugs showed acceptable safety and tolerability profiles, along with evidence of efficacy in anti-tumor activity. Both candidates are now undergoing Phase 2 studies.

In July, the company announced additional upbeat news about ARV-417. Arvinas disclosed that it will be working with Pfizer in a global collaboration to commercialize ARV-417. The agreement stipulates that Pfizer will make an up-front payment of $650 million in cash to Arvinas, with an additional $350 million separate equity investment in the company.

These positive developments have helped shares climb by an impressive 212% over the past 12 months. They have not just sparked investor interest in ARVN – they have also prompted Wall Street’s analysts to take notice. From H.C. Wainwright, 5-star analyst Andrew Fein writes, “The major takeaway from the [Pfizer] deal, according to us, is the potential of ARV-471 in combination therapy with Pfizer’s CDK4/6 inhibitor…. not only does the collaboration validate ARV471 but it also boosts other degrader programs in the TPD (targeted protein degradation) landscape. Therefore, considering ER degraders as still a brand-new approach in the oncology space, we remain cautiously optimistic regarding the prospect of ARV-471 and ARV-110, as we head towards 2H21.”

Unsurprisingly, Fein reiterated a Buy rating on this stock, and raised his price target from $100 to $135, implying a 12-month upside of 33% for the shares. (To watch Fein’s track record, .)

This company’s headline grabbers grabbed the attention of 9 analysts. Their collected reviews are unanimous, to Buy the stock, giving ARVN shares a Strong Buy consensus rating. The stock is selling for $101.1, and its $126.44 average price target suggests it has room for an extra 25% of share appreciation in the year ahead. (See Arvinas’ stock analysis at TipRanks.)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Betting on Momentum? 2 ‘Strong Buy’ Stocks to Keep an Eye On appeared first on TipRanks Financial Blog.

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This Week In Bitcoin: BTC Breaks The $40k Barrier; Medium-Term Outlook Turns Positive; Grayscale Crypto ETFs; and More

Market sentiment has improved significantly this week, as BTC tops resistance at $40k. However, derivative traders remain cautious, as experts predict that the market may shift from bullish to bearish. Read More... The post This Week In Bitcoin: BTC Breaks The $40k Barrier; Medium-Term Outlook Turns Positive; Grayscale Crypto ETFs; and More appeared first on TipRanks Financial Blog.

This Week In Bitcoin: BTC Breaks The $40k Barrier; Medium-Term Outlook Turns Positive; Grayscale Crypto ETFs; and More

Market sentiment has improved significantly this week, as BTC tops resistance at $40k. However, derivative traders remain cautious, as experts predict that the market may shift from bullish to bearish.

The Fundamental Look

After six long weeks of rallying between the $30,000 and $36,000-mark, Bitcoin finally crossed the $40,000 psychological level, alleviating a bit of the bearish market sentiment. However, data from the leading platforms indicate that derivatives traders are still walking on eggshells. (See Bitcoin stock comparison on TipRanks)

The week started with Bitcoin trading at just above $32,000, reaching $40,667.28 on July 28th for the first time since mid-June. The upward trend of BTC for the sixth consecutive day is partly due to a short squeeze and the FUD about Amazon planning to accept Bitcoin and other cryptocurrencies as forms of payments. Owing to the dramatic rise of BTC and other cryptocurrencies this week, experts underline that a short squeeze of heavily leveraged traders may have added to upward pressure on prices.

Meanwhile, institutional investors continued offloading BTC as negative sentiment prevails. Per a recent report issued by Coinshare, Bitcoin-based funds saw the largest outflows with $24 million, or 85% of combined outflows from crypto products. Monthly outflows for BTC are now at $49 million, although year-to-date flows remain positive at $4.1 billion.

In other related news, BTC Perpetual Futures trading on Binance hit an all-time high of $48,168, topping the 50-day moving average acting as resistance. The Grayscale Bitcoin Trust (GBTC) reflects Bitcoin’s bullish sentiment, especially after its premium over spot prices reached the highest levels since May. Moreover, Bitcoin’s upward trend has also led sellers to quickly cover positions, which may lead to even higher prices in the coming week.

In adoption announcements, Glen Oaks Escrow, one of Southern California's largest independent escrow companies, has announced its first property refinancing with a Bitcoin-backed loan. Meanwhile, Amazon denied that it plans to accept BTC by the end of this year, sparking a retrace of earlier gains tied to speculation that the eCommerce giant was forging ahead with these plans. Finally, a new government-backed project in Kazakhstan aims to authorize local banking institutions to facilitate BTC transactions officially.

Whales Of the Week

  • July 23: 15,349.236 BTC moved from multiple addresses to an unknown wallet
  • July 24: 15,379.934 BTC moved from multiple addresses to an unknown wallet
  • July 25: 15,276.3111 moved from multiple addresses to an unknown wallet
  • July 26: 20,888 BTC moved from multiple addresses to Binance
  • July 27: 3,497.317 BTC moved from multiple addresses to Bitfinex
  • July 28: 10,219.484 BTC moved from multiple addresses to an unknown wallet
  • July 29: 15,914.33 BTC moved from multiple addresses to an unknown wallet

The Technical Take

After weeks of consolidating with a narrow range amid falling volumes, Bitcoin managed to break out from a downward trending equidistant channel before attempting to break the prevailing downtrend in prices. For the week of July 23rd to 29th, BTCUSD surged 22.14%, outpacing an 11.48% climb in ETHUSD and an 8.45% gain in ADAUSD.

This breakout was accompanied by a corresponding jump in trading volumes, confirming the move higher. After an apparent double-bottom appeared on July 21st just below the $30,000-handle, BTCUSD has since broken above the channel and recorded an eight-day winning streak.

Given this dramatic reversal, a slight technical retrace may materialize over the coming sessions, even though the pair is currently setting up with an ascending triangle pattern. Any clean break and close above resistance presently sitting at $40,900 could pave the way towards the next resistance at $42,900 before testing the 200-day moving average sitting just above $44,000.

On the downside, support is currently holding firm at $39,400. Any break lower could see more buying support emerge at $36,850. The 50-day moving average is also trending higher, acting possibly as support just below $35,000 if a 30-60% technical retrace manifests before continuing the current short-term uptrend.

Disclosure: Reuben Jackson held no position in any of the stocks mentioned in this article at the time of publication.

Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.

The post This Week In Bitcoin: BTC Breaks The $40k Barrier; Medium-Term Outlook Turns Positive; Grayscale Crypto ETFs; and More appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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