The stock market advance from September 24 has hit its first bout of selling, as the S&P 500 dropped about 70 points from its high. However, initial dips are usually bought in a strong advance within a bull market.
The POWR Ratings can help you identify the best stocks from a technical and fundamental perspective. Stocks that get upgraded early in a bull market tend to outperform.
Below, we highlight four recent upgrades that have the potential to climb even higher soon: Workday (WDAY), Alcon (ALC), Take-Two Interactive (TTWO), and Cree (CREE).
WDAY provides software solutions for those who work in human resources and financial management. WDAY’s platform is cloud-based, making it all the more important during the pandemic that has shifted work away from traditional offices with in-house servers to the cloud. WDAY services are used by Fortune 50 businesses, medium-sized companies, and others.
WDAY has A grades in the Trade and Buy & Hold POWR Rating components along with B grades in the remaining components. WDAY is ranked 22nd of 96 stocks in the Software – Application space.
WDAY has a year-to-date price return of 40%. The company’s six-month price return is 54%. WDAY’s three-year price return is 110%.
The industry’s best analysts are bullish on WDAY, setting an average price target of $253.32, indicating it has more than 10% upside. WDAY has more than doubled since September. If this stock slides in the weeks to come, view it as a buying opportunity, establish a position, and hold your WDAY stock for years to come. This is a long-term winner.
This eye care device company provides vision/surgical care. ALC’s surgical portfolio consists of devices and tech for refractive surgery, retinal surgery, cataracts, and more. ALC’s vision care segment makes contact lenses and care products to treat contact lenses.
ALC has A grades in the Buy & Hold and Trade Grade POWR Ratings components. The stock is ranked 20th of 142 in the Medical – Devices & Equipment space. ALC obtained FDA approval for two allergy drugs earlier this year. ALC has a year-to-date price return of 10% and a six-month price return of 17%.
ALC is currently trading a couple of dollars below its 52-week high. If the stock dips in the days ahead, swoop on in, scoop up some shares, and hold them for the long haul.
Take-Two Interactive (TTWO)
TTWO, a New York City-based video game developer and publisher, makes games playable on video game consoles, computers, tablets, and other mobile devices. Nearly 60% of TTWO revenue stems from customers based in the United States.
The POWR Ratings show TTWO has A grades in the Buy & Hold and Trade Grade components. The stock is ranked third of 15 in the Entertainment – Toys & Video Games category.
TTWO has a year-to-date price return of 36%. The company’s six-month price return is 34%. Furthermore, TTWO has a three-year price return of 59%.
If you are not a TTWO believer, consider the fact that the top analysts have set an average price target of $190.24. If TTWO rises to this level, it will have increased by 14%.
TTWO recently acquired Ruffian Games, the developer of Crackdown 2, a shrewd move that will certainly build momentum as we head into the Christmas holiday. Look for TTWO to move back toward its late summer high of $177 as the holiday season approaches.
It is hard to go wrong investing in semiconductor manufacturers. CREE is one such company, making semiconductors that improve the value of power, solid-state lighting, and communications products by boosting their efficiency and energy performance. Examples of CREE semiconductor products include radio-frequency applications, light-emitting diode products, and power applications. In short, CREE products are used for an array of applications including those that benefit from improved illumination for truly vivid displays.
CREE has A grades in three of the four POWR Rating components. The stock is ranked in the top third of those in the Home Improvement & Goods space.
CREE has a year-to-date price return of 56%, a six-month price return of 103%, and a three-year price return of 145%. JP Morgan’s endorsement of CREE gives you all the more reason to own the stock.
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WDAY shares were unchanged in premarket trading Friday. Year-to-date, WDAY has gained 37.84%, versus a 9.97% 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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