PRESS DIGEST – New York Instances enterprise information
Wells Fargo: These 2 stocks could go up at least 30%
After the sell-off in January, the stock market was firmly back in bull mode for the first week of trading in February. All three major indices closed the week at or near all-time highs as the market reacted positively to the latest job data and the Democrats’ decision to push a $ 1.9 trillion stimulus package. Where is the market going next? Wells Fargo, an investment firm, sees long-term stock market appreciation. Looking to the future, Scott Wren, Senior Global Equity Strategist at Wells Fargo, said, “Taking into account our expectation of a significant recovery from last year’s pandemic contraction are factors that we have discussed in the past and are who we think will continue to be the drivers this year. Positive vaccine news, simple monetary policy pursued by the Federal Reserve, and additional expected government incentives have helped the stock market … ”With that in mind, Wells Fargo analysts put two stocks on the table and find that each stock could rise at least 30% in the coming year. After taking them through the TipRanks database, we found that the rest of the street is also right in the cop camp. Guild Holdings (GHLD) The stock market may make more headlines, but real estate is where most Americans keep their fortunes. The two markets overlap when real estate companies go public. Guild Holdings is a mortgage company that raises, sells, and services home loans in the US residential mortgage sector. The company operates in most states and operates through retail and word of mouth channels. The San Diego-based company went public in the second half of October last year. The opening was only moderately successful as the stock was at or near $ 15 and was below the planned $ 17. Guild Holdings sold 6.5 million shares, down from 8.5 million expected. The IPO raised $ 97.5 million and the company has a current market cap that confirms our overweight GHLD rating. $ 972.6 million. Looking ahead, Wells Fargo analyst Donald Fandetti believes the company is well positioned to benefit in the current climate. “Despite rising interest rates, we believe management is confident that the business model should hold up relatively well given the buy / retail bias. There is also the option of filling out its branch presence in areas like the Northeast. The rising 10 – The annual return has shifted the investor sentiment further negatively for the originators “, meant the analyst. In this environment, “Fandetti continues to prefer value and buy an MKT investment,” which is why he is optimistic about the share. In line with these comments, Fandetti rates GHLD as overweight (i.e. buy) and its target price of $ 22 suggests potential for upward growth of 36% over the coming year. (To see Fandetti’s track record, click here.) Likewise, the rest of the road climbs aboard. 4 buys and 1 hold assigned in the last three months result in strong analyst consensus. The stock is selling for $ 16.21, and the average target price of $ 19.30 implies an uptrend of 19% for a year. (See GHLD stock analysis on TipRanks) PDC Energy (PDCE) Next, PDC Energy is a hydrocarbon producer based in Denver, Colorado. The company operates in its home state’s Wattenberg Field and in the Delaware Basin of the Texas Permian Oil Formation. PDC produces oil, natural gas and natural gas fluids through an aggressive horizontal drilling program. PDC recorded a drop in sales in the first quarter of 20 and a further decrease in the second quarter – however, in the third quarter the return on sales moved in the right direction. The company raised $ 303 million for the quarter and had adjusted earnings of $ 1.04 per share. Looking at the fourth quarter report due out in late February, the company is expected to post earnings of 92 cents per share. In some other positive metrics, PDC produced a total of 192,000 barrels of oil equivalent per day for a total of 17.7 million Boe in the third quarter. The company had cash flow from operating activities of $ 280 million and free cash flow of $ 225 million. During the third quarter, PDC repaid $ 215 million in debt. Analyst Thomas Hughes, in his note on Wells Fargo stock, is impressed with the company’s free cash flow and potential for future production. “The FCF generation will reduce absolute debt to below $ 1.5 billion by the end of the first quarter of 21 on our model. This is an important number as shareholder returns (buybacks first) are based on this performance. With debt falling below $ 1.5 billion, the company will likely take a formulaic approach to distributing FCF … Although there is increased CO regulatory risk, PDCE has successfully built a backlog of approvals and DUCs for forward development, ”wrote Hughes. To do this, Hughes rates the stock as overweight (i.e. buy) and its target price of $ 33 shows confidence in a 30% uptrend for the next 12 months. (To view Hughes’ track record, click here.) It’s not often that all analysts agree on a stock. When this happens, take note of it. PDCE’s Strong Buy consensus rating is based on unanimous 10 purchases. The stock’s average target price of $ 27.90 indicates 10% and a change from the current stock price of $ 25.35. (See PDCE stock analysis on TipRanks.) To find great ideas for trading 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 analysts presented. 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.