AVGO: 3 Upgraded Stocks to Buy for March

The latest POWR Ratings are in. Only a handful of stocks moved up to A grades, indicating they are Strong Buys. Though the market is seeing volatile swings, there are still some fantastic investment opportunities available.

Even if the market moves sideways from this point through the end of the second quarter, there will still be some truly elite stocks that could provide solid gains despite the ongoing pandemic. However, there is the potential for a setback on the virus front to spur investors to take profits off the table and transition to comparably safe investment vehicles.

Below, we shine the spotlight on three of the latest POWR Ratings upgrades: Broadcom (AVGO), Columbus McKinnon (CMCO), and Thermo Fisher Scientific (TMO ).

Broadcom (AVGO)

AVGO is one of the top names in the semiconductor industry. AVGO’s niche is complex digital/mixed-signal semiconductors of the complementary metal-oxide variety or CMO for short. AVGO has B grades in the Momentum, Growth, Sentiment, and Stability components of the POWR Ratings. You can find out more about how AVGO fares in the remainder of the POWR Rating components by clicking here.

AVGO is ranked #5 in the Semiconductor & Wireless Chip industry. You can find other top stocks in this industry by clicking here. AVGO has a forward P/E ratio of 17.88, meaning it is likely underpriced at $484. The highest analyst price target for the stock is $575. The stock returned 44.88% last year.

Columbus McKinnon (CMCO)

CMCO designs, makes, and supplies material handling products and solutions. CMCO makes everything from cranes to hoists, lift tables, material handling systems, and component parts. The company’s clients include those in the industrial and consumer market spaces. CMCO material handling products are sold both here in the United States and also abroad.

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Though CMCO’s forward P/E ratio of 45.97 is somewhat high, the stock is still a couple of dollars below its 52-week high of $54.65. CMCO has B grades in the Quality, Sentiment, Stability, and Growth components of the POWR Ratings. If you are curious about how CMCO fares in terms of the remaining component grades, such as Momentum and Value, click here.

Of the 87 publicly traded companies in the Industrial – Machinery industry, CMCO is ranked 6th. You can other top stocks in this industry by clicking here.

Analysts have established an average price target of $53.14 for CMCO, indicating a potential upside of 5%. CMCO has returned 36.13% so far this year.

Thermo Fisher Scientific (TMO)

TMO makes scientific instruments. The company is a global leader in the science space, with more than half of its revenue stemming from life sciences solutions. TMO has a fairly reasonable forward P/E ratio of 20.71, indicating it might be a bit underpriced at its current trading level of $463.77. TMO returned 43.72% last year.

TMO has a Growth Grade of A and B grades in the Quality and Sentiment components. If you would like to find out more about how TMO fares in the rest of the POWR Ratings components such as Momentum, Stability, and Value, you can find out that information by clicking here.

Of the 60 stocks traded in the Medical – Diagnostics/Research industry, TMO is sitting pretty with a ranking of 9. If you would like to find other top stocks in this industry, click here.

TMO is fresh off a solid earnings report that beat Wall Street expectations. This is partially the result of TMO’s coronavirus testing. Though such testing will eventually come to an end, TMO’s tests will likely be in demand for at least another year, meaning the stock has the potential to move higher.

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K.I.S.S. for the March Stock Market

AVGO shares were trading at $480.60 per share on Wednesday morning, up $0.09 (+0.02%). Year-to-date, AVGO has gained 9.76%, versus a 3.44% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...