3 Monster Growth Stocks That Can Move Forward In 2021
With the end of 2020, there is a growing belief that 2021 will be a year of growth for the stock markets. The U.S. elections have brought back a divided government that is unlikely to have the vast majority – or support – necessary to pass sweeping reform laws from right or left, and that bodes well for the economy in general. The COVID vaccines are entering distribution, and while new antivirus lockdowns are also being rolled out, there is a feeling that the end of the pandemic may be near. According to the analyst community, some names reflect serious growth games. These are stocks that have made impressive gains since the start of the year and are poised to continue growing beyond the end of 2020. With that in mind, we used TipRanks’ database to search the street for tickers that fall into this category. For three in particular, analysts believe any name that happens to also have a consensus rating of “Strong Buy” can keep the rally alive in 2021. SunOpta (STKL) The first stock on this growth list is a health snack company, SunOpta. The company’s line of products includes herbal beverages, fruit-based snacks, broths and broths, teas, and sunflower and toasted snacks. The company markets through private label and co-manufacturing distribution as well as through food service institutions. SunOpta has a market capitalization of $ 962 million after a year of impressive share price growth. The stock gained an impressive 328% that year, far outperforming general markets. The company’s revenue for the third quarter was $ 314.9 million, up 6.4% year over year. With a net loss of 1 cent, EPS was better than the expected loss of 2 cents – and far better than the loss of 11 cents reported in the same quarter of the previous year. The company’s solid performance caught the attention of Craig Hallum analyst Alex Fuhrman. The analyst rates STKL a Buy along with a price target of USD 15. This number implies a year-long upward movement of 40% from current levels. (To see Fuhrman’s track record, click here.) Endorsed his stance, Fuhrman wrote, “We believe that the company’s focus on high quality plant-based foods and beverages should require a premium valuation with upside opportunities for estimates if those Economy recovers from COVID. “Fuhrman’s optimism is largely based on SunOpta’s niche. The analyst commented, “We expect plant-based food stocks to earn a premium rating for other food companies for the foreseeable future, as growth trends are faster and there are compelling environmental benefits. With sales of just $ 4.5 billion, plant-based products now account for less than 1% of the food market of $ 695 billion, but it’s easy to imagine that over time they would represent a double-digit share of food sales. “Wall Street doesn’t always come together unanimously, but in this case it does. The consensus rating of the SunOpta Strong Buy analysts is unanimous and based on 3 Buy ratings. The stock sells for $ 10.70. With an average price target of USD 15, SunOpta has growth potential of 40%. (See STKL stock analysis on TipRanks) Green Brick Partners (GRBK) Housing construction was a bright spot in the economy last year. When people moved out of the cities to avoid COVID, they went to the suburbs and suburbs – and that increased the demand for single family homes. Green Brick is a Texas-based land development and home acquisition company. The company invests in real estate, mostly land, and then provides land and construction finance for the development projects. The spread of the suburbs – not just this COVID year but in general as a trend has been good for Green Brick. The company’s third quarter revenue was $ 275.8 million, its best in more than a year. It exceeded forecast by 20% and grew 31% year over year. The EPS was also strong; The Q3 value of 68 cents was 54% above expectations and more than twice as high as a year ago. Green Brick’s stock price has risen along with the company’s financial prospects. For the year, GRBK increased 111%. In his coverage of this stock, JMP analyst Aaron Hecht stated: “[We] Expect the GRBK to benefit from the trend of moving apartment tenants to single-family homes to increase the security and dynamism brought about by more teleworking. The main cohort shift within the buyer pool is millennials who have gone sidelined to buy homes, a trend we believe has been on the catwalk for several years. The millennial demand trend is compounded in the case of GRBK given its oversized exposure to markets such as Texas and Atlanta, which are the net beneficiaries of migration from high-priced coastal regions. “To this end, Hecht rates GRBK as outperforming (ie buying), and its price target of USD 30 implies an upward trend of ~ 23% for the next 12 months. (To see Hecht’s track record, click here.) While not unanimous, the consensus rating is critical to strong buying at Green Brick, with a 3: 1 breakdown of buy versus hold. The average target price of USD 27.5 results in an upside potential of 12.5% compared to the current share price of USD 24.45. (See GRBK stock analysis on TipRanks.) Brightcove, Inc. (BCOV) We’re moving to the software industry and joining Brightcove, a Boston-based software company. Brightcove offers a variety of video sharing products, including cloud-based hosting, as well as social and interactive add-ons. The company is a leader in the delivery and monetization of cloud-based online video solutions. The strength of such a business model during these pandemic days with its massive shift of employees towards remote offices, teleworking and video conferencing is evident. Brightcove earnings reached 11 cents per share in the third quarter, almost double the prior-year quarter. The bottom line was that revenue was stable, ranging from $ 46 million to $ 48 million per quarter in 2020, with no noticeable COVID impact. Brightcove stocks have rallied throughout the year after a minor slip last winter. The pace has accelerated since late July after the second quarter results were released, and the stock is up 103% through 2020. The general macro headwind is turning into video niche tailwind, as Northland Capital analyst Michael Latimore noted. “We believe that having a tailwind in the market, BCOV’s leading technology platform, and strong sales processing will drive strong bookings. We believe the sales force is at full productivity. BCOV will add more channel managers this year. Management is focused on process improvements to achieve a consistent revenue retention rate, “the 5-star analyst noted. Latimore rates the stock as an outperform (i.e. Buy), and its price target of $ 24 shows confidence in an uptrend of 36% for the next year. (To view Latimore’s track record, click here.) In the past three months, two more analysts have thrown their hats on the video tech company. The two additional purchase ratings provide Brightcove with a strong consensus buying rating. With an average price target of $ 20.17, investors can take home a 14% gain if the target is met in the next few months. (See BCOV stock analysis on TipRanks.) To find great ideas for trading growth stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.