Market Preview: Jobs Data Lifts Market

After gains earlier in the week, markets were somewhat mellow on Friday. The Dow and S&P 500 were up slightly, and the Nasdaq was off a quarter of a percent. Good jobs data earlier in the day buoyed markets, after less than stellar projections out of Amazon (AMZN). The online retailer said that 2019 will be a big investment year for the company, which was already anticipated. But news that the company was facing regulatory headwinds in India, and was projecting lighter sales, drove the stock down to finish off just over 5% on the day.  

Sysco (SYY) and Clorox (CLX) report before the bell bright and early Monday, but investors will be waiting for the closing bell to ring for Alphabet (GOOGL) to report. Even after coming off of 2018 highs, the search company is still a $783 billion market cap behemoth. After Facebook’s (FB) much better than anticipated numbers, analysts will be looking for good news on the advertising front from Google as well. The company is expected to make $11.08 a share, up on a year-over-year basis from $9.70.

Tuesday we’ll have a range of earnings reports from Walt Disney (DIS), British Petroleum (BP), and Estee Lauder (EL). Disney is back to the low end of the trading range it experienced for most of 2018, and has recovered from the end of year swoon it experienced. Wednesday is pharma day when Eli Lilly (LLY), GlaxoSmithKline (GSK) and Regeneron Pharmaceuticals (REGN) all report.

Thursday the earnings spotlight will turn to Phillip Morris (PM), Sanofi (SNY) and Yum! Brands (YUM). Philip Morris made headlines early this year when it said it wants to eventually stop selling cigarettes. Investors will be looking for an update on the business plan moving forward if the company wishes to turn away from its main product. Friday we’ll hear from Exelon (EXC), Phillips 66 (PSX) and Hasbro (HAS).  

The economic calendar Monday, to begin the first full week of February, starts with motor vehicle sales, factory orders and the TD Ameritrade IMX, or investor sentiment survey. Investors who jumped ship in late 2018 as the market faced uncertainty may be coming off the sidelines after one of the best Januarys in 30 years. Factory orders for November, which are delayed from an original early January release schedule, are expected to come in up .4%. This follows a 2.1% decline in October.

Redbook retail data, PMI services and ISM non-manufacturing data will all be released Tuesday. The Purchasing Managers Index, made up of over 400 companies, last came in at 54.4 for December. Also slated for Tuesday is President Trump’s State of the Union address. Any news out of the speech, especially an update on how the Chinese trade situation is progressing, may impact markets Wednesday.

Mortgage applications, international trade data, and productivity and cost numbers will be scrutinized by analysts Wednesday. The composite mortgage numbers were down 3% last week, with refis coming in particularly weak, down 6%. Fed Chairman Powell is expected to host a town hall meeting at 7 pm Wednesday evening, taking questions from educators across the U.S..  

Thursday is a big day for economic data. Jobless claims and the EIA natural gas report will both be released Thursday morning. Thursday afternoon will find investors looking over consumer credit numbers, the Fed balance sheet, and money supply data. With the Fed projected to tap the brakes on quantitative tightening, analysts will be pouring over the Fed balance sheet numbers when they are released at 4:30 pm. Baker-Hughes rig count data comes out on Friday.    

6 Stocks Set for Monster Growth in 2019

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[Editor’s Note: This article was previously published on November 2018. It has since been republished to reflect changes in upside potential.]

Although stocks have experienced a rough ride in 2018, some stocks still have a big chance to shine through 2019. The best stocks to buy now go above and beyond the normal growth prospects. While looking for these kinds of investments, I examined six of the best stocks to invest in, all with huge upside potential and support from the Street’s top analysts.

The best way to find these stocks is with TipRanks’ Top Analyst Stocks tool.

Why? Well, the tool reveals all stocks with strong buy ratings from Wall Street’s best-performing analysts. You can then sort the stocks by upside potential to pinpoint compelling investing opportunities.

At the same time, I was careful to avoid stocks that have big upside potential simply because share prices have crashed recently. Check the price movement over the last three months to be sure shares are moving in the right direction.

With that being said, let’s get straight down into taking a closer look at these six stocks to buy now — all of which I believe look undervalued.

Stocks to Buy Now: Cloudera (CLDR)

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Cloudera (CLDR)

Big-Data cruncher Cloudera (NYSE:CLDR) has upside potential of 50% say the Street’s top analysts! Currently, the stock is trading at $13.04 but analysts see it hitting $19.40 in the coming months. The stock has experienced some volatility this year, but it is now in a very promising setup. Indeed, year-to-date, Cloudera has surged 20%.

Jack Andrews, a five-star analyst from Needham, upgraded Cloudera to a “buy” rating at $31.

We can see from TipRanks that this “Strong Buy” stock has a lot of Street support. Indeed, in the last three months, CLDR has received five buy ratings.

Stocks to Buy Now: Dave & Busters (PLAY)

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Dave & Busters (PLAY)

The hybrid game arcade and restaurant chain Dave & Buster’s Entertainment (NASDAQ:PLAY) scored a rebound this year, but more upside is to come. Specifically, analysts expect 26% from the current share price — all the way from $50.53 to $63.67.

Maxim Group’s Stephen Anderson is slightly more bullish than consensus — he believes the stock can soar to $64. Even though the stock has experienced some short-term sales volatility, he says that valuation remains very compelling.

Ealier, Anderson described PLAY stock as “deeply inexpensive relative to Casual Dining Peers” and ultimately: “Our core thesis on PLAY, which is comprised of; (1) high-margin entertainment revenue growth; (2) robust unit expansion; and (3) longer-term comp growth of at least 2%, remains intact.” PLAY should also benefit big-time from the upcoming tax reform.

In the last three months, PLAY has received an impressive eight consecutive buy ratings. As a result, the stock has a ‘Strong Buy’ analyst consensus. Out of these ratings, five come from best-performing analysts.

Stocks to Buy Now: CBS Corp (CBS)

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CBS Corp (CBS)

Media stock CBS Corporation (NYSE:CBS) can climb nearly 31% in the next 12 months, say top analysts. This would see the stock trading at nearly $65 versus the current share price near $50.

A few months ago, Imperial Capital’s David Miller reiterated his “buy” rating. This was accompanied by a very bullish $76 price target. Miller expressed positivity in the outlook following strong fundamentals from “positive initiatives” put in place by the former CEO.

Previously, Benchmark’s Daniel Kurnos said, “that the demise of Network ad revenues is greatly exaggerated.” He even says that this bearish talk is overshadowing “the positive traction CBS is seeing in its ancillary revenue streams.” The underlying business model is very strong and “the pressure on the media sector has created a buying opportunity for the content leader.”

Meanwhile, out of 14 recent ratings on CBS, nine are buys. This means that in the last three months only five analysts have published hold ratings on the stock.

Stocks to Buy Now: Neurocrine (NBIX)

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Neurocrine (NBIX)

Neurocrine Biosciences’ (NASDAQ:NBIX) top analysts believe this biopharma still has serious growth potential left to run in 2019. Specifically, the Street sees NBIX rising from $88.48 to $104.71, or near-20% upside.

The Street is buzzing about Neurocrine’s Ingrezza drug. This is the first FDA-approved treatment for adults with tardive dyskinesia (TD). A side effect of antipsychotic medication, TD is a disorder that leads to unintended muscle movements. Stifel analyst Paul Matteis is very optimistic, reiterating his recommendation with a price target at $115.

Encouragingly, the stock has received no less than 12 buy ratings from analysts in the last three months. Six out of the 12 of these buy ratings are from top-performing analysts.

Stocks to Buy Now: Sinclair Broadcast (SBGI)

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Sinclair Broadcast (SBGI)

Sinclair Broadcast Group (NASDAQ:SBGI) is one of the U.S.’s largest and most diversified television station operators. SBGI stock has had a rough 2018, but top analysts see strong upside potential ahead.

Benchmark Capital previously named SBGI as one of its Best Ideas for 1H18. Five-star Benchmark analyst Daniel Kurnos says “We see SBGI as one of the best values in the entire media landscape.” He is now eyeing $39 as a potential price target, a double-digit gain from its current perch of $31.11.

According to Kurnos, Sinclair has multiple upcoming catalysts over the next six months. This includes the pending mega-deal between Sinclair and Tribune. Sinclair is currently waiting for regulatory approval for the $3.9 billion takeover that would give Sinclair control of 233 TV stations.

Top analysts are united in their bullish take on this strong buy stock. In the last three months, four analysts have published buy ratings on Sinclair.

Stocks to Buy Now: Laureate Education (LAUR)

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Laureate Education (LAUR)

Laureate Education (NASDAQ:LAUR) is the largest network of for-profit higher education institutions. This Baltimore-based stock owns and operates over 200 programs (on campus and online) in over 29 countries. Analysts believe impressive upside is on the way. Currently, this is still a relatively cheap stock to buy at just $15.91.

Barrington analyst Alexander Paris, just today, reiterated his “buy” rating on LAUR stock at $20, meaning upside of 25%!

Previously, Stifel Nicolaus analyst Shlomo Rosenbaum notes that Chile’s election result is a “material positive” for Laureate. He says new President Sebastian Pinera is less likely to support legislation for free post-secondary education — the prospect of which has dampened prices to date. Rosenbaum currently has a $19 price target on the stock.

Overall, Laureate certainly has the Street’s seal of approval. The stock has scored three top analyst buy ratings recently. This includes a bullish call from one of TipRanks’ Top 20 analysts for 2017, BMO Capital’s Jeffrey Silber.

TipRanks offers investors the latest insight into eight different sectors by tracking the activity of 4,500 analysts, 5,000 financial bloggers and even 37,000 corporate insiders. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.

Source: Investors Alley