TipRanks’ 3 Stock Picks for 2022 – The Hamden Journal
The TipRanks database tracks over 9,600 publicly traded stocks. It’s a treasure trove of data, allowing investors to follow and follow their favorite stocks, or get the truth before they deposit their money. And now, as 2021 has turned into 2022, we can take a step back, take a broader look at the market, and dig deeper into 3 stocks with strong buy ratings and a “perfect 10” from the Smart Score.
These are quick data points that can show investors the likely path of a stock. A strong buy is evident – it’s derived from the aggregate of Wall Street analyst ratings and shows sentiment on the stock to be clearly bullish.
The Smart Score is a little different. This is a score derived from a wide variety of data sources. Composite data sets have all been shown to correlate strongly with stock performance, and the Smart Score shows, at a glance, how a stock measures. A perfect score, of 10, may not indicate strength across the board – but will indicate a stock that is generally very strong.
So let’s dive in. According to TipRanks data, these are 3 stocks investors should be looking at in the New Year. They bring together a series of positive attributes: the Strong Buy rating, the Smart Score of 10, and double-digit upside potential over one year.
General Motors (DG)
First of all, GM, a company that most of us are familiar with. This staple of the Detroit auto scene has been around for over a century, and its Renaissance Center headquarters is an iconic marker of downtown Detroit. GM owns some of Detroit’s most famous automotive brands and nameplates, including GMC, Cadillac, Chevy, and Buick.
Like much of the auto industry, GM has faced serious headwinds in the form of the COVID pandemic, supply chain disruptions, semiconductor chip shortages and rising inflation. . All of this impacted sales, revenue, profits, and market share. A glance at the third quarter results, released in October, will tell the story.
The top line, total revenue, showed $ 26.7 billion, down 24% year-over-year, and EPS, at $ 1.52, was the lowest since 2Q20. These declines have gone hand in hand with a drop in vehicle sales; at 446,997, total sales for the quarter were down 33% year-on-year. However, GM announced a sharp increase in its market share, which, at 13.3%, was up nearly 7% year-on-year.
Along with these results, GM has shown volatile stock market activity during 2021 – but in the end, the company’s shares have risen 41% in the past 12 months. This exceeds the 29% gain of the S&P over the same period.
The gains could be in part attributed to the auto giant’s positioning in the burgeoning electric vehicle (EV) space. Going forward, GM is making a major investment in the segment. The company showcased the Ultium platform, a flexible electric vehicle chassis that can support a variety of vehicle models – and bodes well for GM’s overall plan, to introduce up to 30 new electric vehicles. by 2025. These will include everything from commuter vehicles and vans to delivery vans and utility vehicles.
Regarding the Smart Score, we see that the Perfect 10 is here supported by a strong performance on 7 out of 8 metrics. Pay special attention to the hedging activity, which increased by around 1.2 million. stocks over the last quarter, and the topical sentiment, which is 82% bullish.
The story of EV is central to Wedbush analyst Daniel Ives’ positive outlook on GM. He writes, “With the software and services businesses complementing advanced battery technology, we believe GM is in an excellent position to monetize its vision for electric vehicles over the coming years. With the acceleration of the conversion, GM will be able to achieve revenue growth through improved product margins on every vehicle sold and will benefit significantly as the profit margins for subscription services reach new heights. record. “
Ives rates GM stocks as outperforming (a buy), and his price target of $ 85 indicates potential upside of 45% in the coming year. (To look at Ives’ palmares, Click here)
It is clear from the consensus that Wall Street agrees. GM recorded 13 reviews, with an 11-2 Buy over Hold split to support the Strong Buy rating. The shares are priced at $ 58.13 and their average target of $ 74.58 implies a 27% rise from that level. (See GM’s stock analysis on TipRanks)
DigitalBridge Group (DBRG)
Then, DigitalBridge Group, a company that mixes technology and real estate. DigitalBridge is a REIT, real estate investment trust, focused on digital economy properties. The Company purchases, builds, owns and operates a variety of interests, including data centers, fiber optic cable systems, small cell network infrastructure and wireless transmission towers.
Digital Bridge has decided to expand its footprint. Last October, the company bought a controlling stake in Vertical Bridge Holdings. Vertical Bridge, a privately held US-based company, owns and leases wireless telecommunications assets and has more than 8,000 towers in its networks. This has been added to the more than 20 companies in DigitalBridge’s portfolio and the more than $ 40 billion in assets that DigitalBridge manages.
More recently, DigitalBridge announced that a number of its assets in Latin America will benefit from an investment by the International Finance Corporation (IFC) in the region’s networks and wireless connectivity infrastructure. IFC will invest $ 25 million in companies that DigitalBridge has in its portfolio.
And finally, in a move that has helped streamline operations, DigitalBridge announced in December that it had sold part of its portfolio. The Other Equities and Debt (OED) segment was sold to Fortress Investment Group. The sale brought DigitalBridge a total of $ 506.8 million in realized value. This includes $ 443.4 million in direct cash, $ 31.2 million in cash that has already been received, and an additional $ 32.2 million in future payments, expected in 2022.
The high Smart Score here shows that an action does not need all the measurements to be perfect. Technical aspects and blogger opinions form the basis of DBRG’s bullish Smart Score. The company has an impressive 100% positive sentiment from financial bloggers.
B. Riley’s 5-star analyst Daniel Day envisions a “2022 filled with catalysts.” He says, “… we are seeing DBRG at an inflection point not only in profits, but also in simplifying operations. In 2022, we anticipate that the following events will occur, each of which is not only a potential catalyst, but is also expected to make the transformed DBRG easier to understand for new investors: 1) Redeployment of the proceeds from the recently announced asset sales to new investors. digital infrastructure assets, 2) dividend recovery, 3) initial AFFO forecast and 4) 2023/2025 forecast updates for Digital IM FRE and Digital Operating EBITDA (we believe the forecast is conservative).
Day sets a buy rating here, with a price target of $ 13 which suggests the stock has room for an additional 56% this coming year. (To see Day’s track record, Click here.)
This real estate company in the digital economy enjoys a unanimous note of strong buying conviction from Wall Street analysts; there are only 3 reviews here, but they all agree it’s a buy. The stock is selling for $ 8.33 and the average price target, at $ 11, indicates a potential gain of 32% over the next 12 months. (See DigitalBridge’s stock analysis on TipRanks)
Matador Resource Company (MTDR)
Last on our list is Matador Resources Company, an energy development company in the United States engaged in the exploration, development and production of unconventional oil and natural gas fields. The company’s current operations include oil and liquid rich areas in the Delaware Basin on the Texas-New Mexico border, the Eagle Ford Shale Zone in South Texas, and Louisiana areas Haynesville Shale and Cotton Valley Shale.
The New Mexico-Texas-Louisiana region has been at the center of America’s oil boom in recent years, and with the Biden administration’s de-emphasis on fossil fuels, the region is still a major producer. The quality of Matador’s holdings is evident from the trend in recent earnings reports. Over the past five consecutive quarters, the company has seen sequential gains in both revenue and profit. In the most recent quarter, 3Q21, Matador posted more than $ 472 million in revenue, up 132% from the previous year quarter, along with diluted EPS of 1 , $ 71, up sharply from the loss of $ 2.38 recorded in 3Q20. This was driven by production of oil and natural gas that exceeded expectations, at an average of 90,000 barrels of oil equivalent per day during the quarter.
Matador is another company whose Perfect Smart Score is based on several strongly positive metrics outweighing the negatives. While hedging activity in the last quarter declined, company executives – insiders – increased their buying activity to $ 264,200 of shares. Financial bloggers and news organizations were also positive, showing 100% bullish sentiment in MTDR stocks.
Matador’s recent success prompted the company to increase its dividend policy, doubling the payment for common stock to 5 cents per share. While the yield is low, the key point is the increase – and a solid cash flow behind it. Matador posted $ 291.2 million in operating cash in the third quarter, up 13% sequentially.
All of this pushed RBC 5-star analyst Scott Hanold up on Matador. He writes: “MTDR is well positioned to get off to a good start in early 2022 with the completion of upcoming Voni wells located in the prolific Stateline area in mid-February 2022. This also positions the expansion of the company. MTDR mid-term EBITDA and third-party volume increases. The focus on its core areas and the preloading of some CAPEX is expected to enable production growth of 20% year-on-year while generating a yield of 17% FCF. “
These comments support an outperformance (buy) rating on the stock, and Hanold’s $ 53 price target implies a 12-month gain of over 43%. (To look at Hanold’s background, Click here)
Matador recorded 9 reviews, including 7 purchases against just a pair of holds, supporting a strong buying consensus on the street. The average share price target is $ 53.38, suggesting a potential upside of 44% in the coming year. (See the analysis of Matador’s shares on TipRanks)
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Warning: 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 to do your own analysis before making any investment.