Which stocks are analysts the most bullish on? Stocks with no ‘hold’ or ‘sell’ ratings - and a pure “Strong Buy” analyst consensus to boot.
Using TipRanks database, we set out to pinpoint 3 stocks that command the unanimous support of the Street. Not to mention each ticker offers pretty serious upside potential. Let's take a closer look.
iMedia Brands (IMBI)
Let’s start in the digital world, the virtual universe that has wrought such enormous changes to every aspect of our lives in just the last two decades. iMedia Brands is an online interactive media company, with a portfolio of niche TV-shopping brands that cater to lifestyle oriented customers in North America. The company’s TV-shopping brands include ShopHQ and ShopHQ Health, ShopBulldogTV, and ShopLaventa. The company also owns Float left, an end-to-end OTT streaming service, and i3PL, a digital logistics service. Other services include online retail, for both mass and luxury customers.
As a sector, online retail overperformed last year; the unique social situation imposed due to the coronavirus crisis proved a boon for digital shopping. iMedia was no exception. The company showed a dip in revenues during the first quarter of 2020, but has exceeded in $100 million at the top line in each quarter since. In the most recent quarter, 1Q21, revenues came in at $113 million, up 18% year-over-year.
Total revenue was not the only metric showing strength. The company also registered a 350-basis point improvement in its quarterly gross margin compared to last year; the first quarter showed a margin of 40.6%. During the quarter, total active customers increased by 14%, and the company felt confident enough to launch 34 new product brands across its TV shopping channels. And topping everything, IMBI shares have grown 142% over the last 12 months.
Among the bulls is 5-star analyst Eric Wold who sees IMBI as a solid option for investors.
“With the recent stabilization and return to growth of the core ShopHQ network, we believe the company is well positioned to demonstrate the solid operating leverage inherent within the streamlined programming and distribution platform. We believe the growth potential of the 'emerging' segment is not reflected in consensus estimates, and we view the shares as attractively valued,” Wold opined.
Wold goes on to note that iMedia’s prospects are sound, due to its audience demographics: “The company's target age demographic groups of 50–64 and 65+ continue to embrace traditional TV viewing, and we believe that the pandemic forced those groups to become increasingly comfortable shopping from home.”
In line with these comments, Wold rates IMBI shares a Buy, and his $22 price target implies a one-year upside potential of ~173%. (To watch Wold’s track record, click here)
Although IMBI has only a few analysts currently throwing the hat in the ring, all are bullish on the stock. IMBI’s analyst consensus rating is a Strong Buy, with all 3 analysts giving it the thumbs up. The 12-month average price target stands at $20.33, which implies ~153% upside from current levels. (See IMBI stock analysis on TipRanks)
Genius Sports, Ltd. (GENI)
Market investors know the thrill of betting; in a way, every stock purchase is something of a gamble. Genius Sports, the next stock we're looking at, is a company in the sports betting and media sector, a tech company that provides software and platforms for data management and integrity services, along with video streaming, to sports leagues and bookmakers.
Genius Sports works with over 400 sports leagues and organization around the world, capturing, collating, and archiving the latest data and results. Among the company’s sprots partners are some of the world’s largest leagues, at both the pro and amateur levels, including the NFL, NASCAR, PGA, and the NCAA. Genius Sports also works with major betting companies, such as William Hill and DraftKings.
The company was founded five years ago, but only went public this past April. GENI shares hit the public markets through a SPAC (special acquisition company) merger transaction, which saw dMY Technology Group II purchase Genius Sports and start trading under the GENI ticker.
By the numbers, Genius Sports has over $110 million invested in data tech, covers more than 240,000 sporting events every year, and has over 650 partnerships with leagues and sportsbooks. In May, the company released its first quarterly report as a public entity, for the first quarter of 2021. Q1 revenue was reported at $53.7 million, up 52% year-over-year. The company also announced several major business moves the took place during the quarter, including a 6-year agreement with the NFL and the acquisition of two technology companies, FanHub and Second Spectrum. The latter moves enhance GENI’s data tech capabilities.
The company’s solid performance has attracted the attention of Needham analyst Bernie McTernan. The analyst rates GENI a Buy along with a $28 price target. This figure implies a one-year upside of 56% from current levels. (To watch McTernan’s track record, click here)
“We view GENI's positioning favorably, facilitating the transfer of high quality data from sports leagues to sports books. This data is largely exclusive and rising in value as mobile and in-game betting proliferates. Similar to ESPN using exclusive sports programming rights to drive affiliate fees higher, we anticipate GENI will be able to grow wallet share as the sports betting market grows globally, and GENI offers additional products to sports books such as ad tech and streaming,” McTernan wrote.
Evidently, McTernan's colleagues also think GENI is well-positioned to deliver. The stock has a Strong Buy consensus rating, based on a unanimous 4 Buys. The forecast is for one-year gains of ~72%, given the average price target currently stands at $30.75. (See GENI stock analysis at TipRanks)
Anavex Life Sciences (AVXL)
With the last stock we’re looking at here, we’re shifting our focus to the biotech industry. Anavex is a clinical-stage biopharmaceutical firm, developing treatments for ‘severe and devastating’ neurological diseases. The company’s lead drug candidate, Anavex2-73 (blarcamesine), is currently under investigation as a treatment for Rett syndrome, which has no available therapies, along with Alzheimer’s and Parkinson’s.
Anavex2-73 has several Phase 2/3 clinical trials underway simultaneously. The AVATAR and EXCELLENCE studies are evaluating the drug as a treatment for Rett syndrome, and a review of early safety results by the independent Data Safety Monitoring Board (DSMB) recommended that the studies continue without modification.
In regard to its Alzheimer’s studies, Anavex2-73 has shown to bring about an 8% improvement in activities of daily living by test patients.
While the late-stage clinical studies are making some waves for Anavex, the company has several additional research tracks, at earlier phases. Anavex2-73 is in preclinical and Phase 1 research for several additional conditions, including Fragile X syndrome. And the company has three additional drug candidates in preclinical research from conditions ranging from dementia to depression to stroke.
Soumit Roy, 5-star analyst with Jones Trading, takes an optimistic view of Anavex, based on the company’s early clinical results.
“Anavex has shown remarkable cognitive benefits at the longest duration observed amongst peers... We expect to see positive 12-month data from a randomized Phase 2b/3 trial in approx. 450 patients in mid-2022 and could see earlier data in 1Q22. Early data in Parkinson’s disease was encouraging— ‘2-73 improved core cognitive functions and significantly improved episodic memory in PD dementia patients,” Roy noted.
The analyst summed up, "We believe Anavex’s implied valuation barely includes opportunities in RTT and recent appreciation in stock price mostly came from broader interest in the Alzheimer’s disease space. With potentially two pivotal data in Rett in 3Q21, randomized data in Alzheimer’s disease in 1H22 & mid-2022, and pivotal trial initiation in Parkinson’s disease in 2H21, we are initiating coverage on Anavex’s stocks with a BUY rating..."
Along with that Buy rating, Roy sets a $35 price target that indicates ~74% share growth for the next year. (To watch Roy’s track record, click here)
Once again, we’re looking at a stock with a unanimous Strong Buy consensus rating, based on 3 recent positive reviews. AVXL shares have an average price target of $26.50, implying a 30% upside from the current share price of $20.27. (See AVXL stock analysis at TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.