[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.
Source: JD Hancock via Flickr
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.
Source: Mike Mozart via Flickr
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.
Source: NASA Blueshift via Flickr
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.
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.
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.
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