The POWR Ratings have been calculated, and several stocks have been elevated from a “Buy” to a “Strong Buy” rating.
If you look at the latest POWR Ratings upgrades, you might assume we are in a bull market. However, with an uncertain election coming up, a second wave of the virus re-emerging, and a society-wide feeling of uncertainty, investors must be selective when choosing stocks.
Sea Ltd. (SE)
Information technology and internet service are two of the best places to park your money during a potentially lengthy period of uncertainty. SE provides these services as well as digital entertainment, e-commerce, and more. The company’s primary operations are Indonesia, Thailand, Singapore, Malaysia, the Philippines, and Vietnam.
The SE POWR Ratings are fantastic: “A” grades in the Peer Grade, Trade Grade, and Buy & Hold Grade components. SE is ranked first out of 58 stocks in the Internet industry. Of the 11 analysts who cover SE, 10 rate it a “Buy,” and one rates it a “Hold.” None recommend selling.
It is particularly interesting to note SE’s gaming division has been on fire. The company’s Free Fire game has played a significant role in boosting SE’s adjusted revenue in its digital entertainment business by more than 60% from the year prior. Add in the fact that SE’s Shopee e-commerce platform is enjoying revenue growth of nearly 200% per quarter, and there is all the more reason to be bullish on SE.
SPLK makes it easier for companies to obtain operational intelligence in real-time by maximizing the value of information. SPLK facilitates the analysis and monitoring of data to make educated decisions. The company’s Splunk Enterprise machine data platform gathers and indexes petabytes worth of machine data every day, helping customers study and visualize data for optimal benefit.
SPLK has “A” grades in the Buy & Hold and Trade Grade POWR Rating components. The company is ranked in the top third of nearly 100 stocks in the Software – Application space.
SPLK had a 42% price return in 2019. The stock has a 41% year-to-date return so far. TipRanks reports the average analyst price target for SPLK is $237.04, which could mean a 12% upside.
Semiconductor test equipment products will prove necessary in the years ahead and likely for decades to come. TER makes such automatic test equipment for everything from semiconductors to circuit boards, broadband access network systems, and more.
Take a look at TER’s POWR Ratings, and you will find it has “A” grades in the Industry Rank, Buy & Hold Grade, and Trade Grade components. TER had a 2019 price return of 118%. The stock has a year-to-date return of 34%.
The analysts have set an average price target of $93.36 for TER. The upcycle for semiconductor companies could help TER move even higher through the end of 2020 and into the start of 2021.
Lear Corporation (LEA)
Though the automotive industry has tailed off due to the pandemic, it could bounce back, possibly within a few months or less. LEA provides some of the world’s top automakers with electrical systems and seating. LEA employs more than 150,000 people across nearly 40 countries.
The POWR Ratings show LEA has “A” grades in the Peer Grade and Trade Grade components. LEA is ranked in the top 20 out of more than 50 publicly traded companies in the Auto Parts industry. LEA had a 14% return in 2019. The stock has a six-month price return of 50%.
As long as the automotive industry continues to rebound, LEA could move back toward $140, where it traded this past January.
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SE shares were trading at $162.62 per share on Friday afternoon, up $0.99 (+0.61%). Year-to-date, SE has gained 304.33%, versus a 8.93% 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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|TER||Get Rating||Get Rating||Get Rating|
|LEA||Get Rating||Get Rating||Get Rating|