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three high inventory analysts forecast a rally of 20% or extra

Can
26, 2021

7 min read

This story originally appeared on StockNews

Current market volatility has scared some investors, which is why David Cohne recommends stocks that analysts believe will rebound. Stocks like Regeneron Pharmaceuticals (REGN), Arcelor Mittal (MT) and Boyd Gaming (BYD) have high upside due to their average price targets.

One strategy that many investors practice is to follow the recommendations of Wall Street analysts. The easiest way to do this is to look at the analysts' price targets. Wall Street analysts are typically responsible for reporting on a select group of stocks based on industry and market size.

Analysts meet with management and other stakeholders to determine a company's current and future value based on its finances and growth potential. They use this information to generate earnings estimates and target prices that will help them create their overall valuations. While we don't need to pay too much attention to analyst reviews, we should keep price targets in mind. A price target is what analysts think is the value of the stock per share.

Taking an average of analyst target prices can give you a good idea of ​​what price a stock could reach. If a stock is trading below its average target price, there is a solid chance it will increase its price. If a stock is trading more than 20% below its average target price, there is one strong chance it will rebound, which is why investors like Regeneron Pharmaceuticals, Inc. (REGN), ArcelorMittal (MT) and Boyd Gaming Corporation (BYD).

Regeneron Pharmaceuticals, Inc. (REGN)

REGN discovers, develops and markets products to fight eye diseases, cardiovascular diseases, cancer and inflammation. The company has launched several products including Eylea, which is approved for age-related macular degeneration and other eye diseases, Praluent for lowering LDL cholesterol, and Dupixent for atopic dermatitis, asthma and nasal polyposis.

The company's main growth driver is Eylea, which continues to generate strong revenue from continued label expansions. Eylea is approved in the US, EU, Japan and other countries. Demographics have driven growth due to an aging population and an increase in the prevalence of diabetes.

REGN also has an extensive pipeline of drugs including fully human monoclonal antibodies generated using VelocImmune technology. Promising drugs are fasinumab for osteoarthritis and evinacumab for homozygous familial hypercholesterolaemia. The company has an overall grade of A, which is reflected in a strong purchase rating in our company POWR ratings System.

The company has a growth rate of A, which is due to strong earnings growth. REGN has an average annual profit growth of 41% for five years. In addition, earnings in the current quarter are expected to increase by 144.7% year over year. REGN also has a value of A, which isn't surprising given a forward P / E of 11.36. In addition, the share is trading 28% below its average analyst target.

We also offer momentum, stability, sentiment and quality levels for REGN that you can find Here. REGN is number 1 in the biotech industry. You can find other top stocks in this industry from Click here.

ArcelorMittal (MT)

MT is the world's leading steel and mining company. The company is present in more than 60 countries where its products are mainly sold to customers in the automotive, general and packaging sectors. The company also produces long products consisting of profiles, wire rods, rebars, billets, flowers and wire drawing, as well as pipe products.

The company benefited from increased demand for steel as the economy opened up. Since its products serve two major infrastructure sectors, construction and transportation, MT should also benefit from any infrastructure bill. MT has also focused on cost-cutting and recently released a $ 1 billion fixed cost-cutting program that is expected to be completed by the end of next year.

The company is expanding its automotive steel product line by introducing a new generation of high strength steel. MT has an overall rating of A which is a strong buy on our POWR rating system. The company has an A growth rate driven by its massive growth potential. For this quarter, earnings are forecast to increase by over 1,000% compared to the previous year.

MT is also rated B quality due to a solid balance sheet. Last quarter, the company had cash of $ 5.4 billion, compared to debt of just $ 2.8 billion. Like REGN, MT has high upside potential based on analysts' price targets. It is currently trading 23.4% below its average target price. For the rest of the MT notes (value, momentum, stability, and feel) Click here.

MT is number 5 in the steel industry with an A rating. You can find more top stocks in this industry here shortcut.

Boyd Gaming Corporation (BYD)

BYD is a multi-jurisdiction gaming company. The company owns and operates 29 multi-state gaming entertainment properties with 36,977 slot machines, 809 table games and 11,090 hotel rooms. The company has expanded its brand presence through expansions in Northern California with Wilton Rancheria Resorts. This is expected to open in the second half of 2022.

BYD has also expanded its online betting offer. In 2018, the company partnered with MGM Resorts to offer its online and mobile gaming platforms. In 2019 BYD partnered with FanDuel Group to open sports betting for multiple properties in the Midwest. It also unveiled its Pennsylvania mobile app. It has even announced a partnership with the NFL in which FanDuel will provide endgame and postgame highlights in its sports betting app.

BYD sees solid performance in its interactive gaming platform, which bodes well for the company's future in the iGaming industry. As more people get vaccinated and go out, the increased traffic to casinos should drive growth in the quarters to come. BYD has an overall grade of A, which is reflected in a strong purchase rating in our POWR rating system.

The company has a growth rate of A as its profits have increased by an average of 20% over the past five years. Revenue is expected to grow 494% this quarter. BYD also has a value of B, which makes sense given its forward P / E of 21.79. The share currently has an upside potential of 22%, based on the sum of the analysts' price targets.

We also rate BYD based on momentum, stability, feel and quality. You can find these notes Here. BYD is # 1 in the entertainment industry – casinos / gambling industry. You can find other top stocks in this industry Here.

Discover today's best stocks

This article was written by David Cohne, Chief Value Strategist at StockNews.com. David has helped investors find the most profitable stocks for over 20 years.

If you'd like to see more of his best stock ideas, click the link below.

See David Cohnes favorite stocks

REGN shares were unchanged after close of trading on Wednesday. Since the beginning of the year, REGN has gained 2.91%, while the benchmark index S&P 500 has risen by 12.45% over the same period.

About the author: David Cohne

David Cohne has 20 years of experience as an investment analyst and writer. He is the Chief Value Strategist at StockNews.com and the publisher of the POWR Value newsletter. Prior to joining StockNews, David spent 11 years as a consultant providing outsourced investment research and content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and markets. He takes a basic quantitative approach to valuing stocks for readers.

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