12 Stocks with 50%+ Upside

NYSE: SMFG | Sumitomo Mitsui Financial Group Inc Unsponsored American Depositary Shares (Japan) News, Ratings, and Charts

SMFG – SMFG and GORO headline a list of 12 stocks with impressive growth and upside potential. See them all know.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

It certainly is exciting that the market made all time new highs on Friday. However, from these historic heights it is ever harder to find stocks with impressive upside potential. Especially those companies that are not just cheap, but actually have healthy earnings outlooks. So my weekend research project was to dig a bit deeper to find those rare few stocks that still had exceptional upside potential. Like 50% to 94% upside to fair value, while also flexing their muscle on operational strength. My research project 12 companies that make the grade.

The most recognizable name on this list is the Japanese banking giant, Sumitomo Mitsui (SMFG - Get Rating). Even though this company sports a $50 billion market cap, it is not widely followed by Wall Street analysts. However, those who are paying attention see 60% upside in the share price in the year ahead.  Also interesting to note that Foreign Bank group is A rated for the POWR Industry Rank.

Another hidden gem is Gold Resources (GORO) which is a gold mining company centered in Mexico. Interestingly, they don’t just hang their hat on gold because they also have reserves in silver, zinc and copper which helps diversify their earnings stream beyond the gold boom and bust cycles.

GORO has definitely enjoyed some serious momentum of late thanks to gold taking a run over $1,500. This has led to an impressive 15% gain this past month and +47% the past three months. But what matters is the outlook for GORO going forward. There we see Wall Street analysts still expecting 64% more upside from current elevated levels…a case of buy high, sell higher.

Now let’s open my kimono to have a few of the full research process employed to find these undervalued gems:

  • 8,000+ US based stocks to start with.
  • 1,978 with POWR Rating of A or B. As you probably know by now, this is our exclusive rating system that is built on top of 4 different scores of a stocks attractiveness. Everything from long term to short term view. Plus Industry Rank and how well it stacks up inside its industry. When rolled together it points to stocks experiencing the most healthy momentum at this time and thus likely to stay on the rise.
  • 591 stocks that had earnings estimates not heading lower for this year and next. You can see how this important growth health check knocked out 70% of the stocks. Just think about it this way, a company whose earnings outlook is going down is likely managed poorly and likely to miss earnings again in the future. That is what creates a value trap (a cheap looking stock that only heads lower and lower). This vital criteria puts us into stocks whose outlooks remains healthy and more likely to attain their fair value targets.
  • 12 Stocks with 50% or more upside to fair value targets set by Wall Street analysts. And yes, Wall Street target prices are the best universal choice of value metric. That is because different industries have different methods of valuation and just using PE, PEG, Price to Sales, Book Value, Discount Cash Flow or other valuation metrics across all industries will have you missing many attractive opportunities.

When you add it altogether we are talking about 12 stocks that blend healthy earnings growth + momentum + extreme value. Check them out below.

Company Ticker Market Cap ($mil) Price Target Upside
Western Copper WRN $82 $0.76 $1.48 94.74%
Advanced Emissions ADES $183 $9.87 $18.00 82.37%
Sterling Construction STRL $411 $14.83 $25.00 68.58%
Azure Power Global AZRE $544 $13.27 $22.33 68.27%
Gold Resource GORO $291 $4.43 $7.25 63.66%
North Amer Construction NOA $308 $11.20 $18.15 62.05%
Sumitomo-Mitsui Financial SMFG $50,439 $7.30 $11.70 60.27%
Archrock Inc AROC $1,331 $8.76 $13.63 55.59%
Garrison Capital GARS $93 $5.79 $9.00 55.44%
Ingles Markets IMKTA $891 $43.99 $67.00 52.31%
Arotech Corp ARTX $79 $2.98 $4.50 51.01%
Compugen Ltd CGEN $289 $5.64 $8.50 50.71%

 Want more great stock picks? Then check out these additional resources:

POWR Rating A (Strong Buy) Stocks

Reitmeister Total Return portfolio

 

 

SMFG shares closed at $7.30 on Friday, up $0.03 (+0.41%). Year-to-date, SMFG has gained 12.14%, versus a 26.50% rise in the benchmark S&P 500 index during the same period.

 


About the Author: Steve Reitmeister


Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SMFGGet RatingGet RatingGet Rating
AROCGet RatingGet RatingGet Rating
CGENGet RatingGet RatingGet Rating
GOROGet RatingGet RatingGet Rating
STRLGet RatingGet RatingGet Rating

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NASDAQ: GWPH | GW Pharmaceuticals Plc News, Ratings, and Charts

Why Investors Should be Bullish About GW Pharmaceuticals (GWPH)

GW Pharmaceuticals (GWPH) has been on a steady downtrend since they reported their last quarterly earnings in November.
NASDAQ: FB | Facebook, Inc. -  News, Ratings, and Charts

Why I Believe Facebook (FB) is Headed Higher

It’s been a relatively quiet couple of years for Facebook (FB), with the stock up barely 10% since the end of 2017, just one-third of the performance of its Nasdaq-100 (QQQ) benchmark.
NYSE: SPY | SPDR S&P 500 News, Ratings, and Charts

Five Steps Towards Building a Passive Aggressive Portfolio

The trend of index or “passive” investing accelerated following the financial crisis and seems to now represent a generational shift in the way investors approach the stock market.
NYSE: SPY | SPDR S&P 500 News, Ratings, and Charts

The Most Important Economic News Investors Should Care About This Week

This week will be chock full of important economic news that could send the S&P 500 surging or plunging, depending on the outcomes.
NASDAQ: VOD | Vodafone Group Plc each representing ten Ordinary Shares News, Ratings, and Charts

Top 10 Perfect Stocks for December

How about 10 stocks that blend growth + momentum + value + timeliness. VOD and IGT are just 10 of the stocks that make the grade. Find the full list of these "perfect" stocks below.

Read More Stories


More Sumitomo Mitsui Financial Group Inc Unsponsored American Depositary Shares (Japan) (SMFG) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SMFG News
Page generated in 1.6297 seconds.