The S&P 500 logged a sixth straight record close yesterday, driven primarily by the rally in technology stocks. The tech-heavy Nasdaq has also been witnessing an uptrend. A better-than-expected October jobs report and the Fed’s announcement earlier this week that it will begin tapering its asset-purchase program, which reflects its confidence in the economy’s ability to handle lingering issues, should keep the market upbeat near term.
While rising inflation and supply chain issues remain concerns, Fed Chairman Jerome Powell’s reiteration of the word ‘transitory’ regarding inflation brought some relief.
Given this backdrop, Wall Street Analysts expect fundamentally sound stocks Lufax Holding Ltd (LU), Organogenesis Holdings Inc. (ORGO), LexinFintech Holdings Ltd. (LX), and Brightcove Inc. (BCOV) to deliver significant upside in the near term.
Lufax Holding Ltd (LU)
Headquartered in Shanghai, China, LU is a technology-empowered personal financial services platform. It offers loan products, including unsecured and secured loans, as well as consumer finance loans.
On June 28, 2021, LU announced its partnership with Schroders Singapore, a wholly-owned subsidiary of Schroders, an asset management company, to co-innovate digital wealth solutions in Southeast Asia. Lily Choh, Country Head, Schroders Singapore, said, “We are very excited to be embarking on this journey with LUI who is in the forefront of digital and technological developments.”
LU’s total income increased 17.3% year-over-year to $2.3 billion in the second quarter, ended June 30, 2021. Its net profit was $732 million, up 53.2% year-over-year. Its net margin came in at 31.9% compared to 24.4% in the year-ago period.
Analysts expect LU’s revenue and EPS to increase 19.8% and 12.6%, respectively, year-over-year to $9.56 billion and $1.07 in its fiscal 2021. In addition, it surpassed the Street’s EPS estimates in each of the trailing four quarters.
The stock is currently trading 1.7% above its 52-week price low of $6.06, which it hit on November 5, 2021. Wall Street analysts expect the stock to hit $10.47 in the near term, which indicates a potential 70% upside.
Organogenesis Holdings Inc. (ORGO)
ORGO is a regenerative medicine company that develops, manufactures, and commercializes solutions for the advanced wound care and surgical and sports medicine markets in the United States. ORGO is headquartered in Canton, Mass.
On October 27, 2021, ORGO announced that the latest advanced wound care research on its PuraPly® AM, Affinity®, Apligraf®, and NuShield® product lines would be showcased at the 2021 Symposium on Advanced Wound Care (SAWC) Fall Conference, held October 29-31 in Las Vegas, Nev. The presentation is expected to boost the company’s image with its investors.
For its fiscal second quarter, ended June 30, 2021, ORGO’s net revenue increased 79% year-over-year to $123.2 million. Its operating income came in at $23.59 million, versus a $2.25 million operating loss in the year-ago period. The company’s gross profit came in at $93.26 million, up 90.6% year-over-year.
ORGO’s revenue is expected to be $462.5 million in its fiscal year 2021, representing a 36.7% year-over-year rise. The company’s EPS is expected to increase 143.8% year-over-year to $0.39 in the current year.
Over the past year, the stock has gained 207.5% in price to close yesterday’s trading session at $11.44. Wall Street analysts expect the stock to hit $27 in the near term, which indicates a potential 136% upside.
Click here to checkout our Healthcare Sector Report for 2021
LexinFintech Holdings Ltd. (LX)
Based in Shenzhen, the People’s Republic of China, LX, through its subsidiaries, operates as an online consumption and consumer finance platform for young professionals in the People’s Republic of China. The company operates Fenqile.com, a consumer finance platform.
On June 22, 2021, LX announced a partnership with Huawei in several areas to jointly tap the opportunities in the Chinese consumer market. Jay Wenjie Xiao, Lexin’s chief executive officer, said, “Lexin’s multi-level strategic partnership with Huawei will enable us to reach a wider group of quality users, whom we’ll provide an array of services for, including consumer finance and consumption services.”
LX’s total operating revenue increased 10.5% year-over-year to $506.28 million for its fiscal fourth quarter, ended June 30, 2021. The company’s gross profit increased 71.7% from the same period last year to $257.33 million. Its net income came in at $121.76 million, up 87.6% year-over-year.
Analysts expect LX’s revenue to be $2.06 billion in its fiscal year 2022, representing a 10.7% year-over-year rise. The company’s EPS is expected to increase 202.9% year-over-year to $2.06 in its fiscal 2021. In addition, it surpassed the Street’s EPS estimates in each of the trailing four quarters.
Over the past month, the stock has gained 1.7% in price to close yesterday’s trading session at $5.52. Wall Street analysts expect the stock to hit $8.55 in the near term, which indicates a potential 54.9% upside.
Brightcove Inc. (BCOV)
BCOV provides cloud-based services for video. Its flagship is Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices. BCOV is based in Boston, Mass.
On October 5, 2021, BCOV announced the launch of its Brightcove CorpTV, a solution designed for companies to think and act like media brands. BCOV CMO Jennifer Griffin Smith said, “Companies for the first time have an opportunity to cut through the noise, transcend static websites, and enthrall the people they want to connect with.”
BCOV’s total revenue increased 6.3% year-over-year to $52.16 million for its fiscal third quarter, ended September 30, 2021. Its gross profit in the quarter came in at $33.51 million, up 7.5% year-over-year. The company’s total assets were $193.85 million for the period ended September 30, 2021, compared to $186.8 for the period ended December 31, 2020.
For its fiscal year 2021, analysts expect BCOV’s revenue to increase 6.4% year-over-year to $210 million, and its EPS is expected to increase 23.5% to $0.42 in the next year. In addition, it surpassed the consensus EPS estimates in all the trailing four quarters.
It closed yesterday’s trading session at $10.29 and is currently trading 11.8% higher than its 52-week low of $9.20, which it hit on October 28, 2021. Wall Street analysts expect the stock to hit $15 in the near term, which indicates a potential 45.8% upside.
Click here to check out our Cloud Computing Industry Report for 2021
Want More Great Investing Ideas?
REVISED: 2023 Stock Market Outlook (includes top 7 picks)
LU shares were trading at $6.24 per share on Friday morning, up $0.08 (+1.30%). Year-to-date, LU has declined -56.06%, versus a 26.84% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
More Resources for the Stocks in this Article
|Ticker||POWR Rating||Industry Rank||Rank in Industry|
|LU||Get Rating||Get Rating||Get Rating|
|ORGO||Get Rating||Get Rating||Get Rating|
|LX||Get Rating||Get Rating||Get Rating|
|BCOV||Get Rating||Get Rating||Get Rating|