3 "Strong Buy" Stocks With Targets 20% or Higher Than Current Prices

NYSE: AN | AutoNation, Inc.  News, Ratings, and Charts

AN – Concerns over the Fed’s upcoming interest rate hike and related recession fears might keep the market volatile. Amid this scenario, it could be wise to buy quality stocks AutoNation (AN), Altra Industrial Motion (AIMC), and ArcBest (ARCB), which are rated Strong Buy in our proprietary rating system. Wall Street analysts expect these stocks to see 20% or more upside from their current prices. Read more….

A moderate decline in inflation, reduced unemployment, and fiscal policy support have boosted investor sentiment lately. However, the elevated inflation and the better-than-expected economic data might push the Fed to continue hiking interest rates aggressively. Therefore, the market is expected to remain volatile.

Rising recession fears, weak global economic data, rising global food prices, and commodity shortages keep investors concerned. Amid this backdrop, it could be wise to focus on stocks with solid fundamentals.

Wall Street analysts expect AutoNation, Inc. (AN), Altra Industrial Motion Corp. (AIMC), and ArcBest Corporation (ARCB) to see more than a 20% upside from their current price levels in the coming months. Also, these stocks are rated Strong Buy in our proprietary POWR Ratings system, given their fundamental strength.

AutoNation, Inc. (AN)

AN operates as an automotive retailer that offers a range of new and used vehicles, wholesale parts, repair, maintenance, and collision services.

It also provides automotive finance and insurance products that comprise vehicle services and other protection products and arranges finance for vehicle purchases through third-party finance sources.

For its fiscal 2022 second quarter ended June 30, 2022, AN’s gross profit increased 2.7% year-over-year to $1.36 billion. The company’s operating income came in at $558.10 million, representing a 5.3% rise from the year-ago period.

Its EPS came in at $6.48 for the quarter, representing a 34.2% rise from the prior-year period. As of June 30, 2022, the company had $336.50 million in cash and cash equivalents.

Analysts expect the company’s EPS to hit $24.67 for its fiscal 2022 ending December 31, 2022, representing a 36% rise from the prior-year period. It surpassed Street EPS estimates in each of the trailing four quarters, which is impressive.

The consensus revenue estimate of $27.52 billion for the same fiscal year represents a 6.5% year-over-year improvement. Its EPS is expected to grow at a rate of 24.7% per annum over the next five years.

The stock has gained 6.6% over the past month to close the last trading session at $124.82. The average analyst price target of $156.57 indicates a 25.4% upside potential.

AN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

It has an A grade for Value and a B for Quality. Click here to see the additional ratings for AN (Stability, Growth, Sentiment, and Momentum).

AN is ranked #2 of 24 stocks in the B-rated Auto Dealers & Rentals industry.

Altra Industrial Motion Corp. (AIMC)

AIMC designs, produces, and markets various electromechanical power transmission motion control products for use in various motion-related applications and high-volume manufacturing and non-manufacturing processes internationally. It operates through Power Transmission Technologies (PTT) and Automation & Specialty (A&S) segments.

AIMC’s net sales for its fiscal 2022 second quarter ended June 30, 2022, increased 1.9% year-over-year to $498.10 million. The company had $192.90 million in cash and equivalents as of June 30, 2022.

The consensus EPS estimate of $3.33 for fiscal 2022 ending December 31, 2022, represents a 3.5% year-over-year improvement. Analysts expect the company’s revenue to be $1.93 billion for the same fiscal year, representing a 1.5% rise from the prior-year period. Its EPS is expected to grow at a rate of 15% per annum over the next five years.

The stock has gained 8.1% over the past month to close the last trading session at $40.55. The average analyst price target of $50 indicates a 23.3% upside potential.

AIMC’s POWR Ratings reflect this promising outlook. It has an overall A rating, which equates to Strong Buy in our proprietary rating system.

The stock has a B grade for Value, Stability, Quality, and Sentiment. Click here to see the additional ratings for AIMC’s Growth and Momentum.

AIMC is ranked #9 of 90 stocks in the Industrial – Equipment industry.

ArcBest Corporation (ARCB)

ARCB provides freight transportation services and integrated logistics solutions worldwide. The company operates primarily through Asset-Based; ArcBest; and FleetNet segments.

For its fiscal 2022 second quarter ended June 30, 2022, ARCB’s total consolidated revenues increased 11.6% year-over-year to $1.39 billion. The company’s non-GAAP operating income came in at $150.50 million, representing a 96% rise from the year-ago period.

While its non-GAAP net income increased 101.4% year-over-year to $109.98 million, its non-GAAP EPS rose 111.8% to $4.30. As of June 30, 2022, the company had $127.06 million in cash and cash equivalents.

Analysts expect the company’s EPS to be $14.24 for fiscal 2022 ending December 31, 2022, indicating a 67.1% increase from the prior-year period. It surpassed Street EPS estimates in each of the trailing four quarters, which is impressive.

The consensus revenue estimate of $5.43 billion for the same fiscal year represents a 36.4% year-over-year improvement. Its EPS is expected to grow at a rate of 15.4% per annum over the next five years.

The stock has gained 9.4% over the past month to close the last trading session at $88.74. The average analyst price target of $122 indicates a 37.5% upside potential.

ARCB’s POWR Ratings reflect its solid prospects. The stock has an overall A rating, equating to Strong Buy in our proprietary rating system.

It has a B grade for Growth, Value, Momentum, and Quality. In addition to the POWR Ratings grades we have just highlighted, one can see PKG’s Stability and Sentiment ratings here.

ARCB is ranked #2 of 22 stocks in the A-rated Trucking Freight industry.


AN shares were trading at $126.08 per share on Wednesday afternoon, up $1.26 (+1.01%). Year-to-date, AN has gained 7.90%, versus a -12.26% rise in the benchmark S&P 500 index during the same period.


About the Author: Sweta Vijayan


Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She’s passionate about educating investors, so that they may find success in the stock market. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ANGet RatingGet RatingGet Rating
AIMCGet RatingGet RatingGet Rating
ARCBGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Will Stocks Continue to Rise...Or Time for Rug Pull?

It’s hard not to celebrate each new high for the S&P 500 (SPY). Yet with high inflation not dead and buried then perhaps this stock market celebration is a tad early. That is why you need to hear what 44 year investment veteran Steve Reitmeister is saying about what comes next for the stock market and how to stay on the right side of the action. Read on below for more...

4 Software Stocks Primed for Major Upside in 2024

The software industry is thriving, buoyed by digital transformation, soaring demand for cloud solutions, and the integration of advanced technologies like AI and ML, presenting lucrative opportunities for savvy investors. So, let’s look at tech stocks SS&C Technologies (SSNC), Informatica (INFA), Verint Systems (VRNT), and Yext (YEXT) poised for significant upside in 2024. Read on…

3 Pharma Stocks Primed for May Investment Opportunities

The pharma industry is poised for tremendous growth driven by surging healthcare needs, the introduction of groundbreaking medications, and relentless technological innovation. Hence, quality pharma stocks Collegium Pharmaceutical (COLL), Green Thumb Industries (GTBIF), and Bristol-Myers Squibb (BMY) emerge as prime investment options this month. Read more…

3 Bargain Internet Stock Buys for Savvy Investors

The increased internet penetration is reshaping various industries, driving digital transformation, connectivity, and access to services like e-commerce, remote work, and online entertainment. Thus, robust internet stocks Jamf Holding (JAMF), Upwork (UPWK), and TrueCar (TRUE), which are trading at discounts to their peers, could be ideal buys. Keep reading…

2 Paths for Stocks from Here

The recent rally for the S&P 500 (SPY) is nice to see. However, it is quite possible this is the end of the line for recent stock gains with more downside ahead. To explain the 2 distinct possibilities for stocks at this time is 44 year investment veteran Steve Reitmeister who shares this updated marketing outlook with trading plan and top picks in the article below...

Read More Stories

More AutoNation, Inc. (AN) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AN News