Markets may have started the year on a generally positive note, but they’ve been zig-zagging lately, making it even harder to tell which direction stocks are headed next.
This makes inventory picking even more difficult than usual, but there are tools that can help here.Hint rank smart score The algorithm collects all the data required for stock selection and classifies them according to eight factors. All of these are known for future outperformance. These factors are then summarized into a single score from 1 to 10. 10 ticks all the appropriate boxes and naturally represents stocks expected to go from here.
We used the smart score tool to find two stocks currently displaying a perfect 10 score. Both have already posted some big gains in the past few months, but analysts on the street think these strong buys have more upside potential. Let’s see why.
deckers outdoor (deck)
Number one on our Perfect 10 list is Decker Outdoor, a global footwear company with a portfolio of leading brands. These include UGG, which sells premium footwear, apparel and accessories. Sanook has casual shoes and sandals, and so does Teva. The Hoka brand offers sports shoes and fashion casual footwear represented by his Koolaburra. Most of its products are sold wholesale, but the company also has a growing direct-to-consumer segment.
Earlier this month, Deckers announced results for the third quarter of fiscal year 2023 (the December quarter). Earnings rose 13.4% year-over-year to $1.35 billion, beating Street’s expectations by $90 million. The company also beat estimates on bottom line earnings, hitting its EPS of $10.48 above consensus expectations of $9.52. Going forward, Deckers expects full-year sales to rise from his $3.5 billion to $3.53 billion. The consensus was $3.53 billion.
Looking at the Smart Score, we can see DECK firing on all cylinders. Hedge funds increased their holdings by 130,100 shares last quarter, but the stock caught both bloggers and news sentiment bullish. In terms of fundamentals, the stock has produced his 30% return on equity over the past 12 months.
While the market has been less than impressed with the latest results, it should be noted that the stock has risen 83% since bottoming out in May.
Janine Stichter covers this stock for BTIG and presents a bullish case. she wrote: UGG’s continued strong execution and resonance with young consumers will underpin strong and stable growth, and we expect HOKA to continue expanding at a solid pace over the next few years. Already best-in-class operating margins, with room to expand as cargo headwinds ease, strong profitability and ability to reinvest for growth are competitive advantages. ”
Therefore, analysts undertook coverage with a buy rating along with a price target of $515. What is the impact on investors? A 24% increase from current levels.
Over the past three months, 11 analysts have reviewed DECK’s outlook, with the rating dropping from 9 to 2, favoring buys over holds, all culminating in a strong buy consensus view. . Given the average target of $484.73, the stock is expected to rise 17% over the next few months. (View DECK Stock Analysis at TipRanks)
Poseida Therapeutics (PSTX)
The only thing connecting the next perfect 10 stock to the one above is its score. Poseida Therapeutics has an entirely different value proposition, a clinical-stage biotechnology aimed at developing novel cell and gene therapies for the treatment of cancer and rare genetic diseases. This is done using a proprietary platform that includes piggyBac, Cas-CLOVER, and nanoparticle technology.
The company currently has two allogeneic chimeric antigen receptor T-cell (CAR-T) candidates that have reached the clinical trial stage. P-MUC1C-ALLO1 is indicated for the treatment of solid tumors and is currently being evaluated in Phase 1 clinical trials. Additionally, P-BCMA-ALLO1 is also in Phase 1 trials for the treatment of relapsed and refractory (r/r) multiple myeloma (MM). This candidate is being evaluated jointly with Roche. The company announced promising early clinical data from both studies in December, and plans to provide further updates at this year’s medical conference.
As for smart scores, Poseida’s Perfect 10 rating is based on several strong metrics, including 100% blogger sentiment and active hedge fund activity. These increased his shares by 750,000 during the last quarter.
For HC Wainwright’s Arthur He, Poseida’s positive outlook hinges on its potential to usher in a new era of cell and gene therapy.
“Despite the success of treatment with current autologous CAR-T therapies, significant limitations such as severe toxicity, limited efficacy in solid tumors, and high manufacturing costs remain, preventing widespread adoption of the treatment. “We believe that Poseida’s piggyBac and Cas-CLOVER technologies have the potential to address these issues. Poseida’s platform includes cell and gene therapy We currently expect the company to generate $1.3 billion in risk-adjusted revenue in 2033, up from $56 million in 2027. “
Since bottoming out in May last year, PSTX stock has surged 302% and continues its crash. But he thinks he has more gas in his tank. Along with the buy valuation, his $15 price target leaves room for his 99% additional profit. (To see his track record, click here)
Other analysts believe there are even more benefits. Street’s average target is $19.50, suggesting a 159% return in one year. With only a total of 3 buy ratings, the stock claims a strong buy consensus rating. (See TipRanks PSTX stock analysis.)
Visit TipRanks to find good ideas for stocks trading at attractive valuations. best stocks to buyis a newly released tool that brings together all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are those of the featured analyst only. This content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.