Whether it be in boxing or stock investing, a unanimous decision can be a powerful force. Stepping outside the ring and focusing on investing, when a group of analysts share the same opinion on a stock, whether bullish or bearish, it presents a resounding signal to the investment community.
For instance, more than 20 sell-side research firms cover Amazon and Microsoft. In the case of both stocks, every single analyst currently has a favorable rating.
But with these megacap stocks being widely viewed by investors as long-term winners anyway, what about some other stocks? There are several stocks out there that are not in the daily spotlight but have a unanimous 'buy' rating from at least 10 analysts. Here we highlight a few of the more compelling examples.
Why so Many Buy Ratings on TFI International?
Despite being a lesser known mid cap stock TFI International (NASDAQ:TFII) is followed by 18 analysts all of which call the stock a 'buy'. The leading transportation and logistics company operates a well-diversified business that is generally resilient to economic conditions. Not only does it haul truckload and less-than-truckload (LTL) freight across North America, but it has an emerging package and courier business.
Analysts like the diversified nature of TFI International as well as its growth prospects. The trucking company is actually a conglomerate of more than 80 operating companies that together own over 360 facilities. This scale wrapped in an asset light business model has driven strong revenue growth over the years.
More recently, TFI International stock has been on a tear as the market has awarded its performance in a rebounding economy. Since trading as low as $15.24 in March 2020, TFI shares have surged above $70 in less than a year on expectations of further growth ahead.
A major part of TFI's growth strategy will continue to revolve around making strategic acquisitions that fit the company mold. Part of why the strategy has been so effective is that TFI typically retains management of the companies it acquires. This helps maintain regional expertise, keep customers happy, and encourage growth within each business. As this roll-up strategy rolls on, investors can expect the road ahead to include some solid gains.
Why is Cheniere Energy a Good Energy Play?
There are 13 analysts that have issued an opinion on Cheniere Energy (NYSEAMERICAN:LNG) over the past year and all have been 'buys'. Last month a pair of firms, Barclays and Morgan Stanley, gave Cheniere an $80 target which represents more than 20% upside from current levels.
It's easy to see why Cheniere Energy is a favored name in the liquified natural gas (LNG) space. The company is the pioneer of LNG exploration, production, and marketing by virtue of being the first to receive regulatory approval for LNG exporting. As such, it enjoys a first mover's advantage that will make it hard for competitors to keep up.
Cheniere operates North America's first LNG export facility, the Sabine Pass terminal in Louisiana that cranks out more than 2 billion cubic feet of LNG daily. It also operates the Creole Trail Pipeline, a 94-mile extension of the Sabine Pass terminal that links the LNG hub with downstream markets.
So why liquid natural gas? Low-cost LNG is expected to be in high demand from markets outside the U.S. throughout the decade as countries seek cheaper, cleaner energy sources to generate power and fuel economic growth. Countries like China, India, and South Korea are expected to be among the biggest LNG consumers.
Next week Cheniere is scheduled to show a rebound in earnings after reporting a net loss in Q2. As the country's only pure-play on LNG exporting, Cheniere Energy has tremendous growth potential over the next few years—and plenty of support from analysts.
Why do Analysts Favor Viking Therapeutics?
Viking Therapeutics (NASDAQ:VKTX) is no stranger to analyst favoritism either. All 10 sell-side firms have a 'buy' rating on the small biotechnology company.
Viking develops novel therapeutics for a range of metabolic and endocrine diseases. Its main program is a therapy for non-alcoholic steatohepatitis (NASH), the most severe form of non-alcoholic fatty liver disease. Its VK2809 therapeutic candidate is in a Phase 2b trial after demonstrating an ability to significantly reduce liver fat content in a previous trial.
The well-liked biotech also has a promising early-stage program for X-linked adrenoleukodystrophy (X-ALD), a genetic disease that affects the nervous system and kidneys. Rounding out Viking's pipeline are potential therapies for type 2 diabetes, hip fracture, and hypertriglyceridemia.
From a technical perspective Viking Therapeutics also has some wind in its sails. Last month a long-term diamond bottom pattern formed on the daily chart. The bullish formation suggests the stock may be headed to around $10 by the end of the year. Given the positive headlines and recent surge in the stock, it seems likely to reach that milestone well before year end.
And with a sea of analysts calling for Viking Therapeutics to go as high as $27, it is not too late for investors to set sail on a voyage to big gains.
Featured Article: How is diluted EPS different from basic EPS?7 Healthcare Stocks Delivering Innovation in 2021
We all knew that traditional healthcare services were disrupted in 2020. The patient-doctor relationship went virtual. In the early months of the pandemic, many people in need of elective surgeries simply did not have that option available to them. And even local pharmacies took on a new e-commerce role as curbside pickup or home delivery of prescription medication became the norm.
Not surprisingly healthcare stocks were battered last year. Overall, the sector was down 11%, far below the S&P 500 Index that climbed over 15%.
However, the market is always forward-looking with a particular eye towards innovation. The healthcare sector has many companies that are developing innovative approaches in areas such as gene editing. And other companies are in late-stage trials for drugs that can deliver breakthrough results for conditions that continue to plague our world.
That’s the focus of this presentation. We’ve identified 7 healthcare stocks that are delivering innovative ideas that will help deliver better patient outcomes. And in some cases will revolutionize medicine altogether. These are also the stocks that analysts have their eye on.
View the "7 Healthcare Stocks Delivering Innovation in 2021"
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