Do you have a shopping list ready? Analysts believe these 2 “Strong Market” stocks should be profitable

Will the truth set you free? Maybe – or maybe it will disappoint you.

In late August, Federal Reserve Chairman Jerome Powell issued a dovish update at the Jackson Hole Symposium. Powell has been brutally honest on the subject of inflation, more so than anyone thought he would be beforehand. Powell said, simply, that neither inflation nor higher interest rates are going away anytime soon.

Markets did what they tend to do when faced with unwelcome news – they crashed across the board. However, this drop opens up opportunity for investors willing to do a little bottom fishing.

For now, Street analysts are rising to the challenge by highlighting stocks that should be on investors’ “buy lists” this fall. We looked up the details of two of these stocks in the TipRanks database. they have a strong market rating and show a lot of upside in current conditions.

PGT Innovations (PGTI)

We will start with the construction sector, where PGT offers a specialized product that meets a need: impact-resistant, energy-efficient, door and window systems. The company advertises its products as a “ready” and “safe” way. and promotes their ability to protect customers’ homes from wind damage due to all types of storms, from spring storms to Atlantic hurricanes. PGT operates through a range of 8 branded window and door manufacturers, offering solutions for a full range of entry-related issues: ease of access, energy and insulation performance, impact resistance and storm protection.

Homeowners are always keen to protect their property and this has helped PGT’s revenue and profits grow over the past year or more. The company posted 6 straight quarter-over-quarter gains, and the biggest report, for the second quarter of fiscal 2022, the quarter ended July 2, showed a top line of $407 million. This was up 42% year-on-year. Net income grew even more, growing an impressive 240% YoY to $36 million as Adj. EPS came in at $0.67 – up from $0.18 reported in the same period last year.

Covering PGTI shares for Deutsche Bank, analyst Joe Ahlersmeyer sees a clear path forward for the company, writing, “Sales growth should continue despite a national slowdown in new construction. PGTI’s R&R report can be considered “non-discretionary” as homeowners make choices to prevent repairs later. And while we are less bullish on California’s new resi prospects, markets like Arizona, Texas and Florida should outperform.”

“Bottom line, we are bullish on growth and margins for this business given favorable R&R exposure, structural tailwinds related to hardening at home (Southeast) and outdoor living (West) and encouraged by short-term dynamics seen in recent results,” Ahlersmeyer summarized. above.

To that end, Ahlersmeyer rates PGTI shares a Buy and supports it with a $38 price target, indicating an 84% upside potential over the next year. (To watch Ahlersmeyer’s record, Click here)

Overall, this specialty manufacturing company has collected 4 recent analyst ratings and they break 3 to 1 in favor of Buys over Holds, for a strong buy consensus. Shares are priced at $21.53 and the average price target of $27.25 implies a 32% gain over the next 12 months. (See PGTI stock prediction on TipRanks)

MoonLake Immunotherapeutics (MLTX)

For the next stock we will focus our attention on the biopharmaceutical field. MoonLake Immunotherapeutics is a new company in the world of clinical stage research. MoonLake went public earlier this year when it went public on the NASDAQ through a SPAC transaction. The business combination, with Helix Acquisition, was completed in April and raised approximately $230 million in new capital for the company’s research projects.

The SPAC transaction coincided with MoonLake’s in-licensing of Sonelokimab, an investigational tri-specific nanoparticle currently being evaluated as a treatment for inflammatory skin and joint diseases. MoonLake acquired the license from pharmaceutical giant Merck.

Sonelokimab is currently undergoing several human clinical trials, with the two most advanced being for the treatment of psoriasis and hidradenitis suppurativa. The psoriasis pathway is currently poised to move into Phase 3 trials, based on positive data from the previous Phase 2b study, while the hidradenitis suppurativa pathway began Phase 2 testing in May of this year. The trial aims to enroll up to 200 patients.

Analyst Thomas Smith covers MoonLake for SVB Securities and sees this company with a clear path forward based on its solid research agenda.

“We view SLK development as relatively non-risky, based on the exciting Phase 2b results in psoriasis (PsO)… Overall, we see product pipeline potential for sonelokimab and believe that MLTX can capitalize on its differentiated characteristics drug and the innovative clinical development strategies—informed by experiences with bimekizumab and other IL-17 antibodies—to effectively demonstrate SLK’s optimal balance of efficacy and safety in multiple inflammatory conditions,” commented Smith.

In line with his bullish commentary on the company’s agenda, Smith rates MoonLake shares an Outperform (i.e. Buy), with a $17 price target suggesting a 124% upside over the next year. (To follow Smith’s history, Click here)

The Strong Buy consensus for these shares is unanimous, based on 3 recent positive analyst reviews. The stock’s average price target of $22.50 implies a strong upside of 197% from the current trading price of $7.58. (See MoonLake stock forecast on TipRanks)

To find good ideas for trading stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock information.

Denial of responsibility: The views 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.

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