Wells Fargo: These two stocks can climb at least 30%
After the January sale, February saw its first week of trading the stock market back in bull mode. All three major indices closed the week at or within touching distance of all-time highs, as the market responded favorably to the latest job data and the Democrats’ decision to move forward with a $ 1.9 trillion stimulus package. So, where is the market going? The investment company Wells Fargo sees long-term valuation going forward for the stock markets. Attempts to look to the future, says Wells Fargo̵
7;s senior global equity strategist, Scott Wren, “Recording our expectation of a meaningful rebound from last year’s pandemic-induced contraction are factors we have discussed previously, and we believe will continue to be the drivers of Positive vaccine news, simple monetary policies followed by the Federal Reserve, and further expected government stimulus have all helped the stock market … ”Against this background, analysts at Wells Fargo knock the table on two stocks, noting that each can increase at least 30% a year. After running the two through TipRanks’ database, we found that the rest of Street is also completely in the bullpen.Guild Holdings (GHLD) The stock market may have more headlines, but real estate is where most Americans have their fortunes. Guild Holdings is a mortgage company that originates from, sells and operates mortgages in the US mortgage sector. The company has a footprint across most states, and operates through retail and oral channels. The San Diego-based company held its IPO last year, in the second half of October. The opening was only moderately successful, with the stock at or near $ 15, below $ 17 planned. Guild Holdings sold 6.5 million shares, which was below the expected 8.5 million. The listing raised $ 97.5 million, and the company has a current market value to repeat our overweight rating on GHLD. $ 972.6 million. Looking ahead, Wells Fargo analyst Donald Fandetti believes the company is well positioned to take advantage of the current climate. “Despite rising interest rates, we believe the management has had a confident attitude that their business model should hold up relatively well given their buying / retail direction. It is also possible to fill their branch footprint in areas such as the Northeast. This year’s return has changed investor sentiment. In this environment, Fandetti continues to “favor value and buy high exposure,” hence his bullish take on the stock. In line with these comments, Fandetti considers the GHLD to be overweight (ie buy), and its $ 22 indicates a potential for 36% growth in the coming year. (To see Fandetti’s track record, click here) Similarly, the rest of the street is on board. 4 purchases and 1 team awarded in the last three months provide a consensus on a strong buying analyst The stock is selling for $ 16.21, and the average price target of $ 19.30 implies a one-year upside of 19%. (See GHLD stock analysis on TipRanks) PDC Energy (PDCE) Next up, PDC Energ y, is a hydrocarbon producer based in Denver, Colorado. The company operates in the Wattenberg field in its home state, as well as the Delaware Basin in the oil formation in Texas Perm. PDC produces oil, natural gas and natural gas fluids through an aggressive horizontal drilling program. PDC saw revenue slide in the first quarter, and slipped further in the second quarter – but the top line moved in the right direction in the third quarter. The company raised $ 303 million that quarter, and on an adjusted basis it showed a profit of $ 1.04 per share. If we look forward to the fourth quarter report, which will be published at the end of February, the company is expected to show 92 cents per share. In some extra positive calculations, PDC produced a total of 192,000 barrels of oil equivalents per day in the third quarter, a total of 17.7 million Boe. The company generated net cash from operations of $ 280 million, and saw a free cash flow of $ 225 million. During the third quarter, the PDC managed to repay debt of $ 215 million. Analyst Thomas Hughes, in the note on the share of Wells Fargo, is impressed with the company’s free cash flow and potential for future production. Generation of FCF will bring absolute debt to below $ 1.5 billion by the end of Q1 21 according to our model, an important figure as the shareholder’s return (repurchase first) is based on this performance … As debt falls below $ 1.5 billion, the company is likely to take a formal approach to distributing FCF … While there is an increased CO regulatory risk, the PDCE has succeeded in building a backlog of permits and DUCs for further development, ”Hughes wrote. For this purpose, Hughes considers the stock to be overweight (ie buy), and its price target of $ 33 shows his confidence in an upside of 30% over the next 12 months. (To see Hughes’ track record, click here) It is not often that analysts all agree on a stock, so be aware when it happens. PDCE’s consensus assessment of Strong Buy is based on a unanimous 10 purchases. The stock’s average price target of $ 27.90 suggests a 10% and a change from the current stock price of $ 25.35. (See PDCE stock analysis at TipRanks) To find great ideas for stocks that trade at attractive valuations, visit TipRanks ‘Best Aks to Buy, a recently launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those presented by the analysts. The content is for informational purposes only. It is very important to do your own analysis before making an investment.