Worldwide marketplace for millimeter wave radios and transceivers valued at over $ 9 billion
3 “Strong Buy” stocks for monster growth in 2021
We opened a new page on the calendar, Old Man ’20 is out and there is a feeling that ’21 will be a good year – and so far, so good. The markets closed 2020 with modest session profits to cap larger annual profits. The S&P 500 rose 16% during the corona crisis year, while the NASDAQ, with its strong tech representation, posted an impressive annual gain of nearly 43%. The advent of two viable COVID vaccines is fueling a surge in general optimism. Wall Street’s top analysts have their eyes fixed on the stock markets and have found the gems that investors should seriously consider this new year. These are analysts with 5-star ratings from the TipRanks database who point to stocks with strong buy ratings. In short, this is where investors can expect stock growth over the next 12 months. According to analysts, we are talking about a return of at least 70% over the next 12 months. ElectraMeccanica Vehicles (SOLO) electric vehicles, electric vehicles, are becoming increasingly popular as consumers seek alternatives to the traditional gasoline engine. While electric vehicles simply relocate the source of combustion from under the hood to the power station, they offer real advantages for the driver: They offer higher acceleration, more torque and are more energy efficient and convert up to 60% of their battery energy into forward motion. As EV technology improves, these advantages gradually outweigh the disadvantages of short-range and expensive batteries. ElectraMeccanica, a small-cap manufacturer from British Columbia, is the designer and marketer of the Solo, a single-seat EV tricycle built for the urban commuter market. Technically, the Solo is classified as an electric motorcycle – but it’s fully closed, has a door on either side, has a trunk, air conditioning, and Bluetooth connectivity, and it can travel up to 100 miles 80 on a single charge Miles per hour. Charging time is slow, less than 3 hours, and the vehicle is priced below $ 20,000. Starting in the third quarter of 2020, the company made its first vehicle shipment in the US and expanded into six additional urban markets in the US, including San Diego, CA and Scottsdale and Glendale, AZ. ElectraMeccanica also opened four new stores in the United States – two in Los Angeles, one in Scottsdale and one in Portland, OR. In addition, the company has begun developing and marketing a fleet version of the Solo to target the commercial fleet and car rental markets from the first half of the year. Craig Irwin, 5-Star Analyst at Roth Capital, is impressed with the potential applications of SOLO in the fleet market. He wrote about the opening: “We believe the pandemic is a tailwind for fast food chains looking for better delivery options. Chains seek to avoid third party delivery costs and offset the impact of branding on vehicles owned by operators and businesses. The range of 100 miles, the low running costs and the standard telematics of the SOLO make the vehicle a good choice in our opinion, especially if location data can be integrated into a chain’s kitchen software. We wouldn’t be surprised if SOLO made some big chain announcements after clients validate plans. “Irwin gives SOLO a buy rating backed by its target price of $ 12.25, which implies an upside potential of 98% for the stock in 2021. (To watch Irwin’s track record, click here) Speculative technology is popular on Wall Street, and ElectraMeccanica fits that bill well. The company has 3 recent reviews and they are all buys, which makes the analyst consensus a unanimous strong buy. The shares have a price of $ 6.19 and an average target of $ 9.58, which is a 55% increase for a year. (See SOLO stock analysis on TipRanks) Nautilus Group (NLS) The Washington state-based fitness equipment maker posted massive stock gains in 2020 as its stocks rose more than 900% over the year, including some of the most recent Falls in stock value. Nautilus won when social lockdown guidelines went into effect and gyms closed to stop or slow the spread of COVID-19. The company, which owns major home fitness brands like Bowflex, Schwinn, and the eponymous Nautilus, provided home fitness fans with the equipment needed to keep in shape. The stock’s appreciation accelerated in the second half of 20, after the company’s revenue recovered from losses in the first quarter due to the “corona recession”. Return on sales for the second quarter reached $ 114 million, up 22% from the previous quarter. In the third quarter, revenue hit $ 155, a sequential gain of 35% and a massive gain of 151% year over year. The result was just as strong: earnings per share of $ 1.04 in the third quarter were well above the 30-cent loss of the prior-year quarter. This Lake Street Capital stock is rated by 5-star analyst Mark Smith, who is bullish on this stock. Smith is particularly aware of the recent price decline and notes that the stock has now peaked – making it attractive to investors. “Nautilus reported blowout results for the third quarter of 20 with strength across the portfolio. We believe the company has orders and backlog to generate high sales and profits over the next few quarters, and we believe that consumer behavior has changed radically. We would consider the recent withdrawal as a buying opportunity, ”said Smith. Smith’s target price of $ 40 supports his buy recommendation and indicates a robust upside of 120% for a year. (To see Smith’s track record, click here.) Strong Buy’s unanimous consensus rating shows Wall Street agrees with Smith on Nautilus’ potential. The stock has 4 current ratings and all of them are for sale. The stock closed 2020 at $ 18.14, and the average target of $ 30.25 suggests the stock has room for upward growth of ~ 67% in 2021. (See NLS stock analysis on TipRanks) KAR Auction Services (KAR) Last but not least, is KAR Auction Services, an auto auction company that operates online and physical marketplaces to connect buyers and sellers. Selling to both commercial buyers and individual consumers, KAR offers vehicles for a variety of uses: merchant fleets, personal travel, and even the second-part market. In 2019, the last year for which full-year figures are available, KAR sold 3.7 million vehicles for total sales of $ 2.8 billion. The ongoing corona crisis, with its social lockdown policies, curbed car travel and reduced demand for used vehicles across market segments. KAR stock was down 13% in a year of volatile trading in 2020. In its most recent report for the third quarter of 20, the company had sales of $ 593.6 million, a year-over-year decrease of over 15%. The profit in the third quarter of 23 cents per share was 11% below the previous year’s value and showed a strong recovery after the EPS loss in the second quarter of 25 cents. The new vaccines promise an end to the COVID pandemic later this year, according to Truist analyst Stephanie Benjamin, the medium to long-term outlook for the used car market and KAR Auctions is improving as the lockdown and local travel restrictions are lifted. The 5-star analyst commented, “Our estimates Let’s now assume that volume restoration in 2021 versus fourth quarter of 20 is based on our previous estimates. Overall, we are of the opinion that the results of the third quarter show that KAR is executing well the initiatives it has controlled, in particular improving its cost structure and moving to a purely digital auction model. Looking ahead, she adds: “… The arrears and defaults auto loans and leases have increased and we believe they will serve as a significant tailwind with the resumption of repo activities in 2021. In addition, repo vehicles generally require additional services that should result in a higher RPU. This influx of supply should also help soften the used price environment and encourage dealers to fill their lots, which remain at a three-year low from an inventory standpoint. “Consistent with these comments, Benjamin sets a price target of $ 32, implying a high of 71% one-year upside for the stock, and rates KAR as a buy. (To see Benjamin’s track record, click here.) Wall Street is generally poised to speculate on the future of KAR, as evidenced by recent ratings that split 5 to 1 buy to hold and analyst consensus is increasing leads to a strong buy. KAR sells for $ 18.61 and its average price target of $ 24.60 suggests there is room to grow 32% from that level. (See KAR Stock Analysis on TipRanks.) To find great 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.