Tips
J.P. Morgan: Buy 2 shares (and avoid 1)
Marco Kolonovic, a quantitative strategist well known with JPMorgan, sees the creation of a positive feedback loop that will lift markets next year. Kolonovic hopes that the fall in volatility and favorable monetary policies will convert stocks to investment by 2021 and stimulate further market gains. Officially, JPM predicts a 25% return on the S&P 500 over the next 12 months. Kolonovic predicts that as investors are drawn to stocks, volatility and cash flow, so will institutional investors. In his latest note, the strategist says $ 550 billion in integrated hedge fund activity may be in the medium term for stock markets. Among other factors, Kolanovic writes, “These receipts will be in addition to the equity supply to boost equity markets.” Shares and value stocks. He finds that the first two will benefit from the fall in unemployment, while the third will grow at the expense of stocks as the economy slows. When JPM sees a positive year for the stock market, growth stocks and government bonds generally lose ground. In addition to Kolanovic’s view of the macro situation, JPMorgan analysts are also immersed in specific stocks. Of particular interest, we pulled Diprank’s data on two stocks that the company predicts will show powerful double-digit growth next year. In contrast, we have added something that JP Morgan says to avoid. Dollar Tree (DLDR) Dollar Tree is an important name in the first discount retail segment. Dollar Tree operates more than 15,000 large box stores across the United States and Canada, offering a wide variety of products, many priced at $ 1 or less. Food and snacks in stores, dairy and frozen groceries, home appliances, household cleaners, toys – in short, all the products that customers can find in high-end department stores and retailers, but at discounted prices. The epidemic period is shorter The impact on the dollar tree is less than other merchants, due to the company’s business model. Providing a ‘one-stop shop’ for most homes, and very low prices during a severe economic downturn have helped the company maintain sales and save traffic. This was clear from the company’s 2020 quarterly earnings, which tracked their historical pattern rather than general economic conditions. Yes, Q1 EPS is low, and year-on-year low, but Q1 is generally the company’s slowest. Both Q2 and Q3 earnings showed consistent gains – and at the same time beating year-over-year forecasts. Revenue is stable for 2020, from Q 6.29 billion Q1 to Q 6.18 billion. JPM’s analysis of this stock with solid performance and a strong retail focus. Analyst Matthew Bass writes, “Over the years, we have seen a return to the dual-digit EPS” compound “in the DLDR Core DT banner (w / DTPlus roll-out increase) and in place of stabilization with up and down drives. Family dollar concept. “For this purpose, Bass upgraded its position on the DLDR from overweight (i.e. buy) and set a price target of $ 130, which indicates confidence in 20.5% reverse energy (click here to view Bass track record) Analyst Consensus is a moderate buy based on 17 reviews, including 10 buys and 7 holds, with the Dollar Tree selling for $ 108, indicating that their $ 121.33 average price target is 12% upside from current levels (see DLDR stock analysis on TipRanks) Mohawk Industries (MHK) As a source of employment and an indicator of basic economic health, some businesses receive as much attention as homebuilding, and this brings us to Mohawk, a contractor in the housing construction industry, specializing in residential and commercial FL with over 37,000 worldwide. Benefit more Lies, and operates in North and South America, South Asia and Australia. Mohawk’s performance – both in terms of financial results and share appreciation – has been plagued throughout the year. Earnings declined in 1H20, which declined in Q2, but returned in Q3. The third-quarter top-tier tax, which stood at $ 2.57 billion, was the highest ever in 2020. Earnings followed the same pattern, rising from the Q2 tank to $ 3.26 on the EPS Q3, up more than 2 years. JPM analyst Michael Rehat was impressed with Mohawk’s recent performance, which was enough to improve his position on the stock. He has shifted his rating from neutral to overweight (i.e. buy) and has set a price target of target 157, which suggests an 18% one-year reversal. (Click here to see Rehat’s track record) “Following nearly three years of relative performance, we believe both sales and purchases will be overly conservative in MHK’s revenue growth opportunities over the next 1-2 years. At this point, we hope our 2021E EPS will be above $ 10.860 on the road, above $ 9.87, based on our conversations with investors, over 00.00, ”Rehat said. Overall, as evidence of the Holt consensus, Wall Street is cautious in Mohawk stocks. It is based on 6 purchases, 4 holds and 4 sales. The stock price is 2 132.60, and the average price target of 6 116.15 indicates a fall of 12.50% for the coming year. . The Chicago-based Northern Trust has $ 1.3 trillion in assets under management and $ 10.1 trillion in assets. The company has a market cap of $ 19 billion, and bank assets of $ 2 152 billion. In all of this, the Northern Foundation has had a difficult time in recent months. The company missed ratings on Q3 results, with EPS of 32 1.32 continuously falling 9.5% year-over-year, and missing the forecast of more than 5%. In the first row, revenue fell 2.2% from Q2 to $ 1.3 billion in Q3. On a positive note, the Northern Trust has been maintaining its dividend payments during this infectious year. The company pays 70 cents per share, and has done so consistently over the past five quarters. The next payment is due in early 2021. At 80 to 2.80 per share per annum, the dividend is more than 3%, which is an attractive value these days at interest rates close to zero. Negatives balancing the positives of the Northern Trust. Accordingly, the analyst downgraded his share to a lower weight (i.e. sell). His price target, $ 90, represents a shortfall of almost 6% from current levels. (Click here to see Junja’s track record) In support of his rude stance, Junja sees several important things: [Northern Trust’s] The P / E premium for trusting bank colleagues is almost two fixed deviations from its long-term average premium, although very short against peers in revenue growth; 2) The Northern Money Market is more vulnerable to financial outflows than its peers – its exposed corporate asset management money market funds are declining faster at AUM 4Q, down 7%; 3) Institutional money market discounts have been very low so far in the North, but they are likely to rise … “Overall, the market’s current outlook for NDRS is a mixed bag, indicating uncertainty about its prospects, with 2 recent buy ratings per share. Keep the analyst’s consensus. Against 3 holds and 3 sells, however, the share 96.38 price target indicates a near 8% reversal of the current stock price. 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