Nasdaq Markets
7 States May Be Voting on Marijuana in November
The Safest Place to Stash Your Cash Right Now
Will There Be Another Coronavirus Lockdown?
Could Pfizer Be a Millionaire-Maker Stock?
2 Forever Stocks to Buy as Demand for Hand Sanitizer Surges
The Average Social Security Beneficiary Has Lost Over $4,500 in Annual Purchasing Power Since 2000
Amazon Plans To Open Fulfillment Center In Mt. Juliet, Tennessee In Late 2021
FDA Approves Kite's Tecartus For Relapsed Or Refractory Mantle Cell Lymphoma Treatment
Novavax: Promising Pre-Clinical Data Keeps up the Momentum
If one of your new year resolutions was to take out a position in vaccine specialist Novavax (NVAX), then congratulations. The risk tolerant investment in a penny stock going for $3.99 a piece at the turn of year has paid off and then some. You are now looking at a stock worth $140.69, having gained 3,430% since nursing that new year hangover.
Novavax’ meteoric rise has been built on the house of COVID. The opportunity presented in finding the coveted coronavirus vaccine has placed Novavax in the rarified surroundings of “big pharma” companies.
Since setting out on the development of its COVID-19 vaccine candidate NVX-CoV2373, long time NVAX bull, B Riley FBR’s Mayank Mamtani has argued Novavax could yet spring a surprise and be the one to provide the desperately needed solution. The 5-star analyst’s case for Novavax was further bolstered on Tuesday with the release of more promising data.
In a study of cynomolgus macaques (a non-human primate), data form a viral challenge showed there is a correlation of anti-S and neutralizing antibodies with lung protection.
For Mamtani, this data reaffirmed his confidence in "the strong immune response expected with '2373 to correlate with long-term disease protection and minimized risk of antibody-dependent enhanced disease (ADE) or vaccine-associated enhanced respiratory disease (VAERD)," while further adding, “This accumulating evidence of high viral neutralizing titers conferring protection within upper respiratory track and in nasal tract suggests to us the increased likelihood of '2373 attaining sterilized immunity.”
What’s more, the NHP (non-human primate) cell-mediated immunity data indicates Novavax’ Matrix-M adjuvant increased “the absolute numbers of spike antigen specific T cells and proportion of multifunctional T cells including CD8 T cells.”
Mamtani expects the biotech to include cell-mediated data in the Phase 1 data disclosure. A Phase 1 study is currently in progress in Australia, and Novavax should release immunogenicity and safety data by the end of the month.
No change then to Mamtani’s rating, which remains a Buy. The analyst’s price target stays at $155 and implies potential upside of 16% from current levels. (To watch Mamtani’s track record, click here)
Among Mamtani’s colleagues, the verdict on Novavax is split. Among the 4 additional ratings, 2 say Buy while 2 say Hold. With Mamtani’s rating in tow, these add up to a Moderate Buy consensus rating. Overall, the analysts believe Novavax has surged enough for now, as the $117.20 average price target implies shares will decline by 12% over the next months. (See Novavax stock-price forecast on 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.
NextEra Energy Partners (NEP) Q2 2020 Earnings Call Transcript
Can Inovio’s COVID-19 Vaccine Make up Lost Ground? Analyst Weighs In
Monday July 20 offered hope that the fight against the coronavirus might be progressing to the next stage. Interim data for AZD1222, a COVID-19 vaccine candidate AstraZeneca is developing with Oxford University, showed “strong” antibody and immune T-cell responses were generated in an ongoing Phase 1/2 trial.
So, what does this mean for other biotechs in the race to develop the coveted COVID-19 vaccine – namely high flying Inovio (INO)? Shares have surged by 722% so far this year, as investors have backed the company’s COVID-19 DNA vaccine candidate, INO-4800, hoping it can deliver the much-needed solution.
But while other vaccine programs have advanced, recent data for INO-4800 left much to be desired, with the murky information failing to provide insight regarding the program’s progress. Since then, sentiment has soured, with a number of Street analysts downgrading Inovio’s rating.
However, the race is far from over and it remains to be seen whether the biotech can ultimately deliver. A Phase 1/2 trial of INO-4800 has been initiated in South Korea - the first to take place in the country - and the full data from the Phase 1 U.S. trial should be published soon.
Despite the recent criticism and lower expectations, H.C. Wainwright analyst Ram Selvaraju argues that if successful, INO-4800 can take its place among others as a viable solution.
The 5-star analyst said, “In our view, multiple vaccines could ultimately enter the market; adoption rates could depend on the strength and duration of efficacy, safety profiles, ease of production and availability, stability in storage and transport, and pricing. We note that Inovio’s DNA vaccines have the advantage of remaining stable at room temperature for more than a year and do not need to be frozen in transport or storage, which is an important factor to consider for mass immunizations.”
Nevertheless, “market valuation and volatility” prohibit Selvaraju from setting a price target for Inovio, while he keeps his Neutral rating as is. (To watch Selvaraju’s track record, click here)
Selvaraju’s take is mirrored by the Street’s appraisal. Based on 2 Buy ratings, 5 Holds and 1 Sell, Inovio has a Hold consensus rating. With an average price target of $22, the analysts expect shares to stay range-bound over the next 12 months. (See Inovio stock-price forecast on 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.
Taking a Page Out of Wall Street’s Top Analyst’s Investment Book
When you’re looking for strong investments that will protect your resources and provide returns, even during these crazy coronavirus days, take a cue from Wall Street’s best analyst. Brent Bracelin, of the Piper Sandler research firm, rates 5 stars from TipRanks – but even better, he currently holds the #1 spot out of 6,815 analysts in the TipRanks database.
Bracelin has earned his high rating by compiling a record of success in a difficult business – reviewing and rating the Street’s favorite stocks, and doing so for the public view. Bracelin has build up an 82% success rate, hitting the mark better than 4 times out of 5, and he’s brought in an average return of 34.9%. There are a few analysts who can match his success rate – but none that match his average return.
For investors seeking winning equities, following Bracelin’s reviews is a viable strategy. And here are some of his recent picks, "Strong Buy" stocks that he sees as winners despite the pandemic.
GoDaddy (GDDY)
The popular web hosting company, which saw $2.9 billion in revenues last year, managed to weather the pandemic storm successfully. While shares dropped sharply in February/March, GDDY had recovered well by mid-June. The end of that month, however, saw a 13% decline after the company’s June 24 restructuring announcement.
The announcement made public the company’s plans to cut costs, and will impact over 800 employees. While the restructuring plans, coming during a week of market pullbacks, spooked investors, GoDaddy also revised its Q2 revenue forecast – upward, by 1%. The previous outlook was for $790 million; the revision would add $7.9 million to that.
We’ll find out on August 5 if the new forecast is on target. In the meantime, note that GoDaddy beat the estimates in Q1, reporting 24 cents EPS, 33% above expectations. Revenue in Q1 hit $792 million, so the new target is definitely in-line with possibilities.
Bracelin is impressed with GoDaddy, writing, “GDDY presents favorable risk-reward, in our view, as digital tailwinds rise and potentially accelerate the company's model transformation to broaden its software product portfolio beyond domain services to web design and marketing applications.”
In line with this outlook, the top analyst rates GDDY an Overweight (i.e. Buy) along with an $82 price target. His target suggests the stock has room for 19% growth in the coming year. (To watch Bracelin’s track record, click here)
In addition to a thumbs up from Wall Street’s top analyst, GoDaddy holds a unanimous Strong Buy rating from the analyst consensus – no fewer than 11 Buy reviews have come in for the stock. Shares are selling for $68.61, and the $86.18 average price target implies a one-year upside of 26%. (See GoDaddy stock analysis on TipRanks)
Anaplan, Inc. (PLAN)
Next on today’s list is Anaplan, a cloud software company offering business-oriented panning software. The company’s platform allows connections between people, data, and plans, making complex scenario modeling possible.
Like many cutting-edge tech companies, Anaplan has been operating at a net loss, and has withdrawn its full-year 2020 guidance numbers. At the same time, the company has been beating earnings forecasts. In the last quarter (fiscal Q1 2021, covering most of calendar 2020 Q1), the company reported a 10-cent per share loss, better than the 14 cents expected. Revenues, at $103.8 million, were up 37% year-over-year.
The earnings results were in line with the previous five quarters, and are expected to remain at this level in fiscal Q2. Share performance hasn’t matched the earnings, however. The stock crashed with the rest of the markets during the winter, and have underperformed during the market recovery. PLAN is still down 16% year-to-date.
Brent Bracelin is unabashedly upbeat on PLAN, stating bluntly, “Buy on weakness.” Describing the stock as a long-term opportunity, Bracelin writes, “[We] continue to view PLAN as a differentiated cloud software application with a compelling value proposition of providing real-time planning and digital agility… we remain bullish that growth potential could improve based on the post-COVID opportunity to enable real-time planning required for the modern digital enterprise.”
Bracelin backs his Overweight (i.e. Buy) rating with a $51 price target, implying an upside of 16% for the coming year. (To watch Bracelin’s track record, click here)
Overall, PLAN's Strong Buy consensus rating is based on an impressive 10 Buys, indicating confidence in the stock. Only three analysts rated it a Hold, and even they see some upside to the stock. The average price target of $52.75 implies a 20% upside potential from the current share price of $43.98. (See PLAN stock analysis on TipRanks)
Avalara, Inc. (AVLR)
Our last stock from Brent Bracelin’s notebook is Avalara, a cloud-based company providing tax compliance software. This is a vital niche, as tax law only grows more complex over time, as Congress tweaks provisions and the various states add their own regulations. The result is a code that everyone must comply with, but is too complex for most individuals and small businesses, and a burgeoning tax compliance industry.
Avalara, which went public two years ago, offers products for a variety of uses: individual returns, excise and communications taxes, even cross-border tax applications. The necessity of the products can be judged by the share performance since the IPO: AVLR now trades for more than 6x its IPO value. Looking at the chart of the stock’s performance over the past two years, the coronavirus crisis appears as a blip.
Piper Sandler’s Bracelin reviewed this stock and is clearly impressed, saying, “AVLR safely navigated CV19 disruptions during 1Q20 delivering $3M of revenue upside on 31% growth… The need to automate manually intensive back-office systems using modern cloud software could materially expand in the post-CV19 world.”
Noting the company’s ability to expand product offerings to meet customer needs as they develop after the pandemic, the analyst wrote: "[We are] impressed by an aggressive product roadmap with six new products scheduled to be released this year as part of a broader multi-product strategy augmenting the core Calculations and Returns business. Three of the six new products stood out to us as having the most potential to have a material impact on 2021 growth prospects…”
To this end, Bracelin rates AVLR an Overweight (i.e. Buy) along with a $138 price target. This figure implies an 11% upside from current levels. (To watch Bracelin’s track record, click here)
Avalara is another Strong Buy stock with a unanimous analyst consensus rating. PLAN has received 11 Buy reviews in recent weeks. The stock has an average price target of $140.09, which suggests a one-year upside of 13% from the $123.93 current trading price. (See Avalara's stock-price forecast on 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.
American Express (AXP) Q2 2020 Earnings Call Transcript
Why Twitter Stock Popped
3 Artificial Intelligence Stocks With Long-Term Narratives
Artificial intelligence (AI) is a buzzword in tech these days. The term, which encompasses a range of technologies including machine learning and data analysis. The goal is to create systems that can perceive, learn, and reason in ways that mimic human capabilities. At its best, AI will allow machines to understand the gestalt of a situation and react accordingly, a capability that humans take for granted – but has tends to elude computer systems, which in their turn excel at analyzing minute details.
A wide range of tech companies are working on AI systems; artificial intelligence holds the promise of real-time data analysis and situation monitoring, with the machines capable of handling routine decisions. While it hasn’t been achieved yet, the outlines of success are visible on the horizon.
Every smart investor knows to keep his eyes on the horizon; that is, to plan every investment with long-range intentions. Just how long is up to the individual, but most investors agree that a move isn’t long-term unless it’s held for more than one year. Warren Buffett has famously said, “If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.”
With this in mind, we used TipRanks' database to identify three AI stocks that have been highlighted by some of Wall Street’s best tech sector analysts. These are analysts with 5-star ratings, standing above their peers in accuracy and average returns – and they’ve tapped Artificial Intelligence as a tech segment for the long run.
Veritone, Inc. (VERI)
We’ll start with Veritone. This media tech company offers a cloud-based operating system for AI that uses machine learning to turn data into useful intelligence. The software allows users to process audio and video in real time, enhance analytics and research apps, reduce content review times, and streamline time spent on ‘low-value, high-effort’ tasks.
The value of the product to the customers can be seen in the quarterly earnings trends and the share appreciation. The last six months – covering the worst of the global pandemic and economic recessionary pressures – have seen VERI’s earnings steadily improve and the share price rise to its best level in over two years. Earlier this month, Veritone showed its confidence by adjusting its Q2 revenue guidance upwards. The guidance, of $13.1 to $13.3 million, is well above the previous upper guide of $12.2 million.
The share price has tracked the gains in revenue and earnings. The stock has more than doubled since the February/March market collapse, rising from $3.03 to $10.83 now.
Patrick Walravens, writing from JMP Securities, was impressed by Veritone’s new revenue guidance, and reiterated his Buy rating on the stock. In his comments, he said, “Veritone seems to be gaining traction in its Government, Legal, and Compliance verticals as it experienced record bookings in the quarter… we believe the company is moving its cost structure in the right direction with recent cost-reduction initiatives and upgrades…”
With his $17 price target, Walravens shows his own confidence that VERI will see 57% growth in the year ahead. (To watch Walravens’ track record, click here)
Overall, VERI’s Moderate Buy analyst consensus rating is based on 4 Buys and just a single Sell. The stock’s current price is $11.80, and the average price target $16.25 suggests it has a 50% upside potential. Note that even the low-ball target estimate, of $15, is well above the current price. (See Veritone stock analysis on TipRanks)
ZoomInfo Technologies (ZI)
Next up is ZoomInfo, a marketing tech company. ZI offers the usual features and services that customers expect in digital marketing intelligence, including account management, data management, demand generation, and lead prospecting. The company’s AI cloud software is specifically designed to improve efficiency in these tasks, letting sellers get to the business of selling.
ZoomInfo is a newly public company, having held its IPO just this past June. The opening was a success, with share prices almost doubling on the first day and nearly tripling in the first few trading sessions. Even now, after nearly two months during which the initial excitement waned and the glow came off the rose, the stock is still trading 88% above its initial price of $21.
The strong IPO prompted SunTrust Robinson analyst Terry Tillman – who is rated in the top 10 of the TipRanks analyst database – to initiate coverage of the stock with a Buy rating. Tillman wrote of ZoomInfo, “We believe ZoomInfo represents a rare combination of strong top-line growth and best-in-class profitability. Its go-to-market (GTM) sales intelligence platform drives positive outcomes for B2B sales and marketing organizations - increasing leads, customers and revenue. Premium valuation justified owing to accelerating demand for GTM intelligence and company-specific drivers leading to significant revenue and profit upside.”
Tillman’s Buy rating comes with a $60 price target, implying an impressive 51% upside potential. (To watch Tillman’s track record, click here)
ZoomInfo holds a Moderate Buy rating from the analyst consensus. This is based on 16 reviews, including 7 Buys and 9 Holds. The stock’s $55.07 average price target suggests it has room for 32% growth from the $41.66 trading price this year. (See ZoomInfo stock analysis on TipRanks)
CareDx (CDNA)
Last on today’s list is a tech company in the health care sector. CareDx develops and delivers diagnostic surveillance systems for heart transplant patients. The company’s AI-powered software monitors patient progress in real time, allowing both the patient and the doctors to respond to any rapidly changing health issues in time to ensure a more successful outcome. The result is a novel development in long-term care.
While CareDx’s products were originally designed to monitor heart transplants, the company has expanded. Its products now monitor most human organ transplants – including kidneys, an important niche, as the first successful organ transplant was conducted with a kidney, and this procedure is still among the most common of transplants. CareDx also has cloud-based AI systems to monitor lab results, and to connect digital implants with remote monitors.
The company’s earnings have proven mostly immune to recent economic instability, as medical transplant patients and doctors cannot simply stop using the monitoring systems. And with a firm user base, the stock recovered well from the late-winter market crash. CDNA is up over 130% since bottoming out in March.
Covering the stock for Piper Sandler, analyst Steven Mah wrote, “We believe CareDx has the broadest transplant care platform in the industry and we remain confident that it is well-positioned to protect and extend its first-mover advantage in both pre- and post-transplant patient management to drive long-term growth. In addition, we are encouraged by the resiliency of its essential tests and ability to operate in a COVID-19 environment.”
Mah gives CDNA a Buy rating, along with a $54 price target that implies an upside of 66% for the next 12 months. (To watch Mah’s track record, click here)
All in all, with 4 recent reviews on record, all Buys, CareDx has a unanimous Strong Buy rating from the analyst consensus. The stock is currently selling for $32.59, and the average price target, at $42.75, suggests a one-year upside of 31%. (See CareDx stock-price forecast on TipRanks)
To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.