Let’s take a quick look at three of the most intriguing POWR Ratings upgrades: Box Inc. (BOX), LKQ Corporation (LKQ), and Tata Motors (TTM).
Box Inc. (BOX)
BOX, a cloud content platform provider, has been in business for slightly more than half a decade. BOX ameliorates the challenge of both internal and external collaboration, makes it easy to develop customized applications, and automates business processes.
BOX has an overarching A grade in the POWR Ratings. The stock has B grades in the Quality, Value, and Growth components. Click here to learn how BOX fares in the Momentum, Sentiment, and Stability components. The stock is ranked in the top 10 of 80 publicly traded companies within the Technology – Services space. You can learn more about the stocks in this segment by clicking here.
The analysts love BOX, establishing an average target price of $23.33. If BOX reaches this level, it will have popped by nearly 25%. The analysts’ high target price for the stock is $28. Of the 12 analysts who have issued recommendations on the stock, six consider it a Buy, two consider it a Strong Buy, and three consider it a Hold.
BOX had a ’20 price return of 7.57%. The stock’s three-month price return is 29.21%. BOX’s three-year price return is 13.87%.
BOX even more intriguing when you consider its forward P/E ratio of 29.38 is reasonable for cloud business. There are also some rumblings that BOX might be acquired or merge with another cloud specialist, creating the potential for quite a lucrative shareholder payday.
LKQ Corporation (LKQ)
LKQ is one of the top providers of replacement components, parts, and systems for automobiles. The demand for LKQ’s auto-related items is likely to soar now that people are returning to the road as the pandemic finally nears an end.
LKQ has B grades in the Value, Sentiment, Quality, and Momentum components of the POWR Ratings. Investors who are curious as to how LKQ fares in the Growth and Stability components can find out by clicking here. Of the 67 publicly traded companies in the Auto Parts segment, LKQ is ranked 10th. Click here to find out more about the top Auto Parts stocks.
In terms of price returns, LKQ has a 19.35% return year-to-date. The stock had a ’19 price return of 50.44% yet its ’20 price return dipped down to -1.29%. LKQ is quite attractive at its current price considering its forward P/E ratio is a reasonable 15.44.
Check out the analysts’ take on LKQ and you will find they are bullish, setting an average target price of $47.50. If LKQ were to rise to this price, it would spike by an impressive 18%. The highest target price for LKQ is $54. Of the 11 analysts who have issued recommendations for LKQ, six consider it a Strong Buy, three consider it a Buy, and two consider it a Hold.
LKQ will likely continue to extend its geographic reach by acquiring more businesses. The company also deserves credit for adopting breakthrough technologies and constantly striving to improve its product inventory. LKQ’s free cash flow continues to increase, bolstering its balance sheet all the more. If everything goes as planned, LKQ’s ’21 year-over-year earnings will grow by nearly 9% and its sales will pop by 5%.
Tata Motors (TTM)
As India’s top automaker, TTM’s merit is fairly obvious. India is the second most populated country in the world with 1.36 billion people. TTM has B grades in the Growth, Value, and Momentum components of the POWR Ratings. Click here to find out how TTM grades out in the Stability, Sentiment, and Quality components.
TTM is ranked 6th of 51 stocks in the Auto & Vehicle Manufacturers segment. You can find out more about the stocks in this segment by clicking here.
TTM has an impressive year-to-date price return of 61.67%. The stock has a six-month price return of 124%.
India’s federal government recently launched a new program similar to the United States’ cash for clunkers program. The result will be a boost in new auto sales that has the potential to send TTM soaring past its 52-week high of $23.70.
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BOX shares were trading at $23.09 per share on Tuesday morning, down $0.31 (-1.32%). Year-to-date, BOX has gained 27.92%, versus a 5.85% 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...
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