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Analysts Say These 3 Stocks Are Their Top Picks for 2021

The yr is winding down, and it’s time for Wall Street’s analysts to start out flagging their prime picks for the approaching yr. It’s a time-honored custom, in most walks of life, to take a typically tongue-in-cheek have a look at what lies forward, and to start out giving recommendation on the say-so of a metaphorical crystal ball.Analysts have been analyzing every inventory rigorously, its previous and present efficiency, its tendencies on a wide range of time frames, administration’s plans – the analysts take all the things under consideration. Their suggestions present worthwhile path for constructing a resilient portfolio within the new yr.As regular, TipRanks has collected and collated the info on the highest picks, and made it accessible for buyers’ use. The inventory selections, and their knowledge, make for some attention-grabbing selections. Let’s take a more in-depth look. UTZ Brands (UTZ)UTZ Brands is a well-known label within the japanese US. The firm is understood for its vary of snack meals, of the salty selection relatively than candy. The firm’s line of meals, together with pretzels, potato chips, snack mixes, and popcorn, are frequent selections in merchandising machines. In August, UTZ (then recognized as Utz Quality Foods) has accomplished a enterprise mixture settlement with Collier Creek, a particular function acquisition firm. The mixture introduced the venerable snack firm into the general public buying and selling area. More just lately, UTZ posted sturdy Q3 outcomes and reported that it has entered an settlement to purchase competing snack firm Truco. The quarterly outcomes had been launched first, on November 5, exhibiting $248 million in web gross sales, a year-over-year achieve of 24%, together with a 23% yoy achieve in gross revenue. One week later, UTZ and Truco introduced a $480 million acquisition settlement, which can carry the ‘On the Border’ model of tortilla chips and salsas into UTZ product line.Covering this inventory for Oppenheimer is 5-star analyst Rupesh Parikh, who sees a transparent path ahead for the corporate. “[Following] the corporate’s announcement on 11/12 to amass Truco Enterprises, [we] total look very favorably upon the deal economics, synergy alternative, leverage to the engaging tortilla class together with ancillary merchandise (salsa and queso), and compelling development prospects for the model,” Parikh opined. “We imagine the corporate is properly positioned to drive at the least 3-4% natural gross sales development and 6-8% EBITDA development with upside optionality from strategic acquisitions,” the analyst concluded. To this end, UTZ remains Parikh’s top small-cap food pick. The analyst rates the stock an Outperform (i.e. Buy) along with a $24 price target. This figure implies a 28% upside from current levels. (To watch Parikh’s track record, click here)Overall, Wall Street loves this stock, earning a stellar analyst consensus rating — Strong Buy. Out of 7 analysts tracked by TipRanks in the last 3 months, 6 are bullish on UTZ, while only one remains sidelined. With a return potential of ~16%, the stock’s consensus target price stands at $21.71. (See UTZ stock analysis on TipRanks)RingCentral, Inc. (RNG)From salty snacks we move on to telecom tech. RingCentral is a cloud-based business communications company. The company’s products are software platform packages that combine telephone and computer systems. The flagship product platform, RingCentral Office, allows compatibility of the communications system with other popular business apps including DropBox, Google Docs, Outlook, and Salesforce. RNG also offers unique features necessary for communications systems: call forwarding, phone extensions, vid calling, and screen sharing.Much of the modern business world is about problem solving, and RingCentral does just that for its customers – and the results are clear in the revenues and stock performance. The top line number has been increasing through 2020, with the Q3 revenues coming in at $303 million for a 9.3% sequential gain. The shares recovered easily from the mid-winter COVID swoon, and the stock is trading up 76% so far this year.On the negative side, RingCentral operates at a net loss, and that net loss has been deepening even as revenues rose and the stock appreciated. The Q3 EPS loss came in at 24 cents.James Fish, 5-star analyst with Piper Sandler, wrote the review on RNG, and he is upbeat about the company’s future. “RingCentral is winning new customers and expanding with existing given its ability to converge across the communication software stack, including with contact center… we continue to recommend RingCentral as one of our ‘core 4’ in our coverage and a name to own for the next few years,” Fish commented. As a result, Fish reiterates RNG as his Top Pick. The analyst rates the stock an Overweight (i.e. Buy) alongside a $362 price target. At current levels, that indicates a possible 21% upside for the coming year. (To watch Fish’s track record, click here)Overall, RingCentral has 10 recent reviews, including 9 Buys and 1 Hold, making the analyst consensus view a Strong Buy. The average price target is $337.22, which suggests a 13% upside from the current trading price of $297.79. (See RNG stock analysis on TipRanks)DraftKings, Inc. (DKNG)The world of fantasy sports helps bring fans into the games, and now that the pro leagues have resumed play – albeit for abbreviated seasons, in deference to the coronavirus – DraftKings, which take fantasy leagues online, has been making gains. In addition to fantasy league creation, DraftKings offers sports betting, and the company’s online model has fit in well with the social distance restrictions put in place to combat the ongoing virus health crisis.In the third quarter, whose results were reported earlier this month, DraftKings had plenty of good news. Revenue, at $133 million, beat the forecast by $1 million, and the net loss per share was not as deep as analysts had feared. The company reported a key metric – monthly unique players – surpassing 1 million, an important milestone. Looking ahead, DraftKings revised its fiscal 2020 guidance upward, by 5.7% at the midpoint of the range, to $540 million to $560 million. The midpoint for 2021 revenue expectations is even more bullish, at $800 million.As noted, these gains come as the major sports leagues have returned to play. But that is not the only key here. DraftKings operates in 19 states plus DC – the jurisdictions which permit legal online sports betting. But an additional 8 states are in various stages of legalizing DraftKings’ niche, and the company looks forward to expanding its operations.Summing up the prospects for DraftKings, Rosenblatt analyst Bernie McTernan writes, “[DKNG] remains a top pick in our Consumer Tech coverage. 3Q results will continue the positive revenue estimate revisions given the better than expected guide for ’20E and ’21E. We are at the high end of the ’21E range which we believe is achievable given our expectation for at least MI and VA coming online.”The analyst added, “New state launches will strain near-term adj. EBITDA however encouragingly the corporate signifies NJ, their most mature market, is in an identical spot the place that they had beforehand hoped it might be for its ramp in profitability.”McTernan charges DKNG a Buy, and his $65 value goal implies a strong 41% one-year upside. (To watch McTernan’s observe report, click on right here)All in all, there 19 critiques on report for DraftKings, together with 13 Buys and 6 Holds, giving the inventory a Moderate Buy score from the analyst consensus. The shares are at the moment priced at $46.24 and have a mean value goal of $59, making the upside potential for the yr forward 38%. (See DKNG inventory evaluation on TipRanks)To discover good concepts for shares buying and selling at engaging valuations, go to TipRanks’ Best Stocks to Buy, a newly launched software that unites all of TipRanks’ fairness insights.Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is essential to do your individual evaluation earlier than making any funding.