3 shares of JP Morgan says they are ready for growth
Take a deep breath, prepare, the New Year is at the door, and while we are all ready to celebrate – just in principle, because coming out of 2020 is reason enough for joy – let’s make a breakdown of where we are and where we are going. There is growing optimism, created by the availability of COVID vaccines and the potential they give to return to normal on the main streets across the country. Finally, the chance that the locking and social distancing regimes will truly end, and in the short term. There is a real chance that by the end of 2021, John Q. The public may be on their feet. Combine that with Wall Street’s current ebb, as stock markets trade at or near their highest levels of all time, and we look into the flag year perspective. The return to normal will be great – but we also have prospects for a growing market. Writing from JPMorgan, chief US stock strategist Dubravko Lakos-Bujas writes: “The shares are facing one of the best backdrops in recent years. Risks related to global trade tensions, political uncertainty and the pandemic will disappear. At the same time, liquidity conditions continue to be extremely supportive and there is an extremely favorable interest rate environment. It is a golden-haired environment for risky assets. “Lakos-Bujas is not afraid to quantify his optimism. He predicts as much as 19% gain for the S&P 500, saying the index will reach 4,000 in the early part of 2021 and reach as much as 4,400 in the later part of the year. Turning Lakos-Bujas ’outlook into concrete recommendations, JPM’s staff of analysts bangs on the table on three stocks that look particularly compelling. We ran the trio through the TipRanks database to see what other Wall Street analysts have to say. Sotera Health (SHC) Sotera Health occupies a unique niche in the healthcare industry, offering through its affiliates a range of safety-oriented support jobs for healthcare providers. These services include sterilization procedures, laboratory testing and advisory services – and their significance is immediately clear. Sotera boasts over 5,800 healthcare customers in more than 50 countries around the world. Although not a new company – two of its subsidiaries have been in business since the 1930s and 40s – Sotera is new to the stock market, as it held its IPO just last November. The initial offer was considered successful, raising $ 1.2 billion by selling 53.6 million shares. Earlier this month, Soter announced it had used most of its IPO capital to pay $ 1.1 billion of existing debt. That included a $ 341 million loan for the first lien, plus $ 770 million in aggregate principal per issue of older secured banknotes. The move allowed Soteri to increase its revolving credit system to $ 347.5 million. This facility is currently unused. Among the bulls is JPM analyst Tycho Peterson, who rates SHC overweight (i.e., buying) along with a one-year goal of $ 35. This figure suggests 31% more than current levels. (To view Peterson’s results, click here) “SHC is uniquely positioned to benefit from healthy growth in the end market and favorable price dynamics,” Peterson noted. “Given a diversified operating platform, sticky multi-year contracts, an efficient pricing strategy, significant barriers to entry and high regulatory oversight, we project sales growth of 9%, with higher utilization driving further expansion [and] robust FCF supports continuous impact reduction, leaving us positive for both the short and long term outlook. “The Wall Street think tank is firmly behind Peterson in this regard – in fact, the recent 7 reviews are unanimously bought, making analysts’ consensus a strong buy. SHC is currently trading at $ 26.75 and its average target price of $ 32.50 US dollars means growth of 21.5% by the end of 2021. (See SHC stock analysis on TipRanks) Myovant Sciences (MYOV) Let’s stick to the healthcare industry and look at Myovant Sciences.This biopharma clinical research company focuses on key issues diseases of the reproductive system in both men and women.In particular, Myovant is working on the development of treatments for uterine fibroids, endometriosis and prostate cancer.Myovant’s pipeline currently offers Relugolix as a drug for fibroids and endometriosis.The drug is in phase 3 trials for the latter and for the former is also in preparation, and is related to reproductive health, and MVT-602, a new drug designed to improve egg maturation and help uv anteroom fertilization. In addition, Myovant announced this month that Relugolix has been approved by the FDA – under the Orgovyx brand – as a treatment for advanced prostate cancer. The drug is the first and currently the only oral gonadotropin-releasing receptor (GnRH) antagonist for this disease. Orgovyx is expected to hit the market in January 2021. Analyst Eric Joseph, in his note on this stock for JPM, describes how he is impressed by Relugolix “based on the clinical and commercial potential of lead relugolix to treat endometriosis and uterine fibroids, as well as men for the treatment of advanced prostate cancer. “In women’s health, we believe that overall phase 3 data to date risk the likelihood of relugolix approval in the United States for uterine fibroids and endometriosis – commercial opportunities that are under-reflected at current levels. Further, we see an attractive commercial setting for relugolix in the treatment of advanced prostate cancer as an oral alternative to LHRH with a differentiated CV risk profile. “These comments support Joseph’s assessment of being overweight (i.e., shopping) at MYOV, and his $ 30 price implies a 31% upward over the next 12 months. (To view Joseph’s records, click here) Overall, Strong Buy analyst consensus rating on Myovant comes from 5 reviews, and the analysis is obvious for the bulls: 4 to 1 in favor of buying versus retention. A share price of $ 22.80 and an average price price of $ 36.40 give strong growth potential of ~ 59%. (See MYOV stock analysis on TipRanks) Metropolitan Bank Holding (MCB) For the third stock, we will change the band from healthcare to financial, where Metropolitan Bank Holding operates – through its subsidiary, Metropolitan Commercial Bank – as a full-service bank. for business, entrepreneurial and personal customers in the mid-market segment. Bank services include business lending, cash management, deposits, electronic banking, personal check and prepaid cards. In a year that has been difficult for most of us, MCB has managed to record ever-growing revenues and solid earnings. The bank’s first line rose from 33 million in Q1 to 36 million in Q3. EPS was stronger, at $ 1.27 per share, which is 30% more than last year. The profit comes when the bank gives guidance in advance of $ 153.9 million of total revenue for next year, which – if met – will reflect a profit of 22% compared to 2020. Although MCB’s financial performance has shown a steady profit, share appreciation has not followed their example. The shares have only partially offset losses taken last winter in the midst of the corona crisis and are currently down 26% this year. Looking at the New York banking scene from JPM, analyst Steven Alexopoulos notes general difficulties in the commercial lending sector – an important part of MCB’s portfolio – due to ongoing problems with the pandemic. In this environment, the Metropolitan Bank sees it as the right choice. “We are not as much a bear as most people who look at New York real estate. After witnessing many cycles in New York, the time to shop was when the herd was running in the other direction. In past cycles, MCB has outperformed its credit metrics in relation to its credit portfolio compared to our covered group, “Alexopoulos noted. Alexopoulos goes on to explain another key strength of MCB’s loan portfolio:” In a low interest rate environment, MCB stands better positioned than its peers to withstand NIM winds with 59% of fixed rate MCB loans, and 67% of the remaining variable rate loans have floor coverings to protect against lower short-term rates … ”To this end, Alexopoulos told MCB estimates overweight (i.e. Buy), along with a target price of $ 50.If the target is met, investors could gain 43% income over the next year. (To view Alexopoulos records, click here) Some stocks fly under the radar, and MCB is one of them.Alexopoulos is the only recent review of this company by analysts, which is definitely positive. (See MCB stock analysis on TipRanks) To find good ideas for the market For stocks at attractive estimates, visit TipRanks’ Best Stocks to Buy ‘, a newly launched tool that brings together all of TipRanks’ capital insights. Disclaimer: The opinions expressed in this article are solely those of the eminent analyst. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.