Markets have been on a roller coaster these last few trading sessions, creating a volatile situation that's not at all what you need for a stress-free New Year.
Don't worry! As RBC Capital writes: "Despite the volatility that we have witnessed in the global markets, for 2019 our analysts are maintaining a pro-growth, pro-cyclical bias." That's not to say you should just carry on regardless. Portfolios should be adjusted to the current economic situation. With that in mind, we've used the TipRanks database to find three 'Strong Buy' stocks set to outperform in 2019. That's according to some of the best analysts on the block. Let's take a closer look.
Canada Goose Holdings, Inc.
First up is Canada Goose. The well-known manufacturer of insulated cold weather gear for winter or high latitudes positions itself as the luxury name in winter outerwear. The jackets, parkas, vests, gloves, and hats are mainly insulated with goose down (hence the company name), and Canada Goose makes a point of sourcing down from only from suppliers who commit to ethical treatment of the animals.
Markets have been kind to (GOOS - Get Report) , as the stock is trading at about two and half times its value from 18 months ago, even after a sell-off in December. The company beat its Q2 earnings estimates by 84%, and the year-over-year growth reached 37%. EPS came in at 35 cents per share, compared to the 19-cent expectation. Quarterly revenues, at $176.22 million, were 17% above estimates.
Susquenna analyst Sam Posner gives GOOS a $98 price target, well above the average and implying a 134% upside to the stock. He says that the company maintains its reputation for luxury winter wear by "making great product, controlling distribution and staying true to its Canadian heritage." Looking at the company's market position, he adds, "[W]e expect a three-year revenue and net income of at least 30 percent and 40 percent."
On Dec 17, Michael Benetti of Credit Suisse showed unusual precision with his $74.62 price target. This gives a 78% upside from the current share price. Benetti says of GOOS, "[E]arnings power is strong, and the company could record EBITDA margins of 27.3 percent by year's end."
Shares of GOOS stand at $45.30 on Dec. 31, compared to $18 on June 1, 2017. As far as the overall Street outlook is concerned, GOOS holds a 'Strong Buy' analyst consensus, and at $83 the average price target gives the stock a 98% upside potential.
Teladoc Health Inc.
In just 25 years, the internet has made a powerful impact on daily life. From email, to online shopping, to VOIP, to social media; from the way we work, to the way we date, to the way we play, it sometimes seems that there is no aspect of our lives that has not been forever changed by the rise of the digital world. Teladoc aims to bring these changes to the healthcare industry. Specifically, it aims to put the physician's checkup online.
Teladoc is a pioneer in telemedicine, using videoconferencing technology to connect patients with on-demand remote medical professionals. Patients can confer with physicians on non-emergency issues, including pink eye, bronchitis, allergy problems, or sinus infection. Doctors are able to take history, refer to specialists, and give prescriptions for non-controlled, non-addictive medications.
The company's service clearly meets a need, as the company has shown strong growth. It facilitated almost 300,00 remote appoints in 2014, and more than 950,000 in 2016. It operates 24/7 in 48 states, and has been endorsed by the American Hospital Association.
Turning to the Street, we can see that Teladoc's 'Strong Buy' rating is based on 6 'buys' and 1 'hold'- all gained in the last three months. The company's share sell at $48, and the average price target of $90 gives sizable potential upside of 85%.
Teladoc has received those strong ratings despite a scandal involving fraternization between the company CFO and a subordinate employee. As Piper Jaffrary analyst Sean Wieland noted, the affair does not impact Teladoc's product or service offerings. He believes the company is unlikely to have to replace the CFO, but that the current weakness in share price represents a buying opportunity. He sets an $88 price target on (TDOC - Get Report) , suggesting an 81% upside.
At Oppenheimer, Mohan Naidu concurs in the 'buy' rating. While Naidu did not set a specific price target, his success rate on this stock is impressive: 76% of his recommendations are profitable, and his average return on TDOC is 46%.
A cautionary note comes from Steven Halper of Cantor Fitzgerald. He placed the 'hold' on TDOC, although he did note the company's revenue growth and improving margins. However, his price target, at $83, still gives TDOC a 71% upside.
Wix has become ubiquitous over the last few years, as the do-it-yourself site building platform grows both more popular and easier to use. The company's performance has reflected that, as shown by the excellent Q3 numbers released in mid-November. EPS beat the estimate by 56%, coming in at 39 cents per share, and total revenues were $155.6 million. The company showed a net increase of 177,000 premium subscriptions for the quarter.
The general market downturn took a toll, however, and (WIX - Get Report) shares didn't get a large boost from the report. The stock is currently trading flat for the last six weeks - at $89.42 compared to $89.35 on Nov 14. It does get a 'Strong Buy,' however, from 7 recent 'buy' ratings and 2 'holds.' The average price target of $112 gives WIX a potential upside of 25%.
Top market analysts haven't been fazed by Wix's stock performance in recent weeks. KeyBanc's Monika Garg put the matter bluntly in her review of the stock on Dec 12. She said, "We believe Wix is a high-quality company with strong growth opportunities, positioned to help businesses build and manage their online presence." Her price target of $122 suggests a 37% upside to WIX shares.
Meanwhile Oppenheimer's Jason Helfstein gave WIX a 'buy' on the same day - it's fourth 'buy' rating in a row. He did not suggest a price target, but his recommendations for WIX have a 75% success rate with an average return of 33%.