Stock selection can boil down to a numbers-crunching game, sifting through the ever-changing data that pours in from the markets as thousands of investors make decisions on thousands of stocks. Infinite permutations.
Not all investors have the time or ability to handle this triage, but TipRanks’ data tools, especially Smart Score, the necessary collection and arrangement has already been done. The Smart Score algorithm, after collecting the latest information on each stock, then sorts it according to eight factors, each of which is known to be a strong predictor of future outperformance. The result, for the more than 8,800 stocks in the database, is a single-digit score, on a scale of 1 to 10, giving investors a quick indication of where the stock is heading.
The Perfect 10 is Smart Score’s seal of approval, and especially in uncertain times like these, the stocks you earn are worth a second look. We’ll give some of them exactly that, combining the latest data from TipRanks with SmartScore results and the latest commentary from Wall Street analysts.
trade office (TTD)
The first is The Trade Desk, an ad tech software company based in Ventura, California. Trade Desk offers a powerful data-driven marketing platform for brands and ad agencies, offering programmatic marketing and advertising tools, all to find the maximum benefit in the world of global digital advertising – a total addressable market fast approaching one trillion dollars. With Trade Desk, users can extend their reach, operate their data, and even customize the platform.
This is a big business, and the Commerce Bureau boasts a market capitalization of over $22 billion. The company had nearly $1.2 billion in total revenue in 2021 and is on track to beat that total the following year; Despite the challenging economic environment, Office of Trade 2022 Quarterly reports Consistently shown gains in revenue year on year. In the last report, for Q3 ’22, the company had a top line of $395 million, up 31% from Q3 ’21. The earnings numbers were a bit mixed. Our GAAP results, of $16 million in net income and earnings per share of 3 cents, were significantly lower than the prior year. But — the non-GAAP results showed a year-over-year gain, with net income growing from $89 million to $129 million, and adjusted earnings per share from 18 cents to 26 cents.
In one wildly positive measure, the company has reported its eight years in a row at 95% or better in customer retention.
look at me Smart Score Here, we find that the stock can still earn a “perfect 10” even if some of the eight factors are negative. The public’s wisdom on TTD registers very negative, with a 5.1% drop in stock holdings over the past 30 days, but there are many other factors that are very positive. Financial bloggers’ sentiment, always picky, is 91% positive about the stock, while company insiders have bought more than $64,000 in shares in the past three months. Among the hedge funds that TipRanks tracks, holdings in TTD increased by more than 210,000 shares in the past quarter. Add in the good press of 100% bullish news sentiment, and it’s enough to get the top smart score.
Analyst Matt Farrell covers this stock for Piper Sandler and, in his final note on the subject, comes to a very optimistic conclusion: “The company is strategically positioned to capitalize on demand for data-driven solutions and the rise of connected television (CTV), which is driving share gains.” Market.Although the ‘Advertising VIX’ hit an all-time high, the company continued to outperform and outperform the broader digital advertising landscape.While the macro may be volatile in the near term, we expect the trade desk to continue to outperform no matter the course. The college.com recommends Trade Desk Ownership investors for exposure to the multi-year connected TV ramp but also as a unique asset in the broader digital advertising market.”
Farrell uses these comments to support an Overweight (Buy) rating on the stock, and gives the stock a price target of $60, which indicates a one-year upside potential of 32%. (To watch Farrell’s track record, click here)
Wall Street generally agrees with Piper Sandler’s opinion here. The stock has 14 recent analyst reviews, including 11 Buys and 3 Holds, for a Strong Buy consensus rating. Shares are priced at $45.57, with an average price target of $63.57 more bullish than Farrell’s, indicating a 39% one-year gain potential. (See TTD stock analysis on TipRanks)
Applied materials (leaked)
For the second stock on our Top 10 list, we’ll take a look at Applied Materials. This company operates in semiconductor chip Industry, where it is known to be an important player – even though it does not produce any chips. Instead, Applied Materials is a designer and manufacturer of the equipment and software needed to produce integrated circuits for a wide range of electronics; flat screen monitors for desktop monitors, tablets and smartphones; and coatings for flexible electronic devices. The company boasts a market capitalization of over $92 billion and annual revenues of over $25 billion.
I reported Applied Materials last November financial results For both the fourth quarter and the full fiscal year 2022, the release showed continued and steady increases in both top and bottom earnings. For the fourth quarter, which ended the fiscal year on Oct. 30, the company reported revenue of $6.75 billion, up 10% year over year and a company quarterly record. On the bottom line, AMAT had non-GAAP EPS of $2.03, up 5%. Both numbers beat Street’s expectations.
For the full fiscal year, top line revenue of $25.79 billion was up 12% from fiscal year 2021 — and like the fourth quarter result, it was a company record. Full year share price reached $7.70, up 13% year-on-year.
At the end of the fiscal year, the company had $1.99 billion in cash, having returned $6.98 billion to shareholders. The capital return included $6.1 billion in share buybacks and $873 million in common interest Dividend payments.
On the Smart ScorePerfect 10 from Applied Materials is based on several solid positive metrics. These include 88% bullish bloggers’ sentiment, 100% positive sentiment, and an increase in hedge fund holdings in the last quarter of 1.5 million shares. The company’s return on equity for the subsequent twelve months was 53%.
In his coverage of this stock for Stifel, analyst Brian Chin points to sector-related weakness that could haunt AMAT — but makes a strong case for the positives to outweigh the negatives in this stock. Chen writes, “Applade has a lot of tentacles to be immune where sub-total investment eventually weakens. However, with this code, we believe that Applade has a better/broader arsenal of products (wallet) with which to attack/meet scaling challenges/ Integration of future technology roadmap for semi-clients, especially in the current/expected situation of additional climate limitation/external mergers and acquisitions in the sector – Applied has more pathways to serve expansion/architecture solutions in the addressable market (SAM) than many of its peers” .
Looking ahead, Chen sees the company as a solid performer, and rates the stock as a Buy. Its $132 price target implies a 20% gain in the 12-month horizon. (To watch Chen’s log, click here)
Hi-tech always attracts attention from Wall Street, and Applied Materials has no less than 24 recent analyst ratings on file.. These ratings split from 19 to 5 in favor of Buys over Holds, supporting the Strong Buy consensus rating. Shares are selling for $109.65, and the average price target of $118.98 indicates a modest 8.5% upside potential for the year ahead. (See AMAT stock analysis on TipRanks)
Stay tuned Better than TipRanks Smart Score He has to show.
Not giving an opinion: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.