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Wall Street's top analysts unveil a selection of 3 stocks set to playfully outperform the market

Charles Sainsbury
22. 4. 2023
6 min read

Analysts at Morgan Stanley and other big banks say the S&P 500 index could see a steeper decline for the rest of the year, which could create interesting opportunities for investors looking for long-term opportunities.

Morgan Stanley's chief strategist predicts a 20% drop in the S&P 500. Jeremy Grantham, the legendary co-founder of GMO, said the index could fall even more sharply, by at least 27%. In a worst-case scenario, he believes the index will fall 50% to around 2,000 points before bottoming out next year. This scenario would make stock selection a key factor for any investor aiming to beat the market or achieve a positive return this year.

If stock selection is not your forte, using consensus analyst opinions to find potential winners could be the way forward. One source is TipRanks, a fintech company that uses artificial intelligence and other techniques to gather and analyze data, including stock market research tools.

Below is a list of 3 stocks on the platform that are considered "strong buys" among leading analysts or that TipRanks has assigned a four- or five-star rating to. TipRanks' analyst rating system is based on three main categories, which include the analyst's average revenue, gains or losses on recommendations, and the volume of corrections and transactions they make. Target prices for each stock are also based on the consensus of leading analysts.

These stocks also have what is known as a TipRanks 10 out of 10 smart score, a purely data-driven rating system that takes into account eight factors, including Wall Street analysts' ratings, corporate insiders' transactions, financial bloggers' opinions, individual investor sentiment, hedge fund managers' activity, news sentiment, and technical and fundamental indicators. The score helps predict a stock's performance relative to the market.

  • From 2016 to the present, stocks with a TipRanks score of 10 have had a total return of 208.8%. The S&P 500 Index has risen 106% over the same period.

Compass Therapeutics $CMPX

CMPX
$1.60 $0.00

Sector.

Best analyst price target: $8.50

Best analyst price target growth: 172%

Compass Therapeutics is a biotechnology company focused on developing new cancer drugs. It was founded in 2015 and is based in Boston. It focuses on developing immunotherapies, which are treatments that activate a patient's own immune system to fight cancer.

Compass has several competitive advantages. First, it focuses on so-called "cold tumors," which are cancers for which effective immunotherapies do not yet exist. This means that if successful, it could fill a gap in the market. Second, it is developing its own platform for identifying new antibodies and optimising them. This allows it to discover unique antibodies tailored to specific targets. Finally, Compass has collaborations with leading academic institutions, giving it access to the latest discoveries and expertise in immuno-oncology.

Going forward, Compass plans to advance several antibodies into clinical trials. A key product is CTX-471, an antibody targeting the OX40 receptor, which could boost the immune response to certain cancers. Another promising candidate is CTX-8371, which is a bifunctional antibody targeting the TIGIT and CD226 receptors. Compass hopes to get at least one of these products into registration studies and eventually to market, giving the company its first commercial product. If successful, this could represent a breakthrough for Compass and its shareholders.

Overall, Compass is looking to leverage the promising field of immuno-oncology to develop innovative drugs that could change the lives of cancer patients. While still in the clinical development phase, it is worthy of attention because it has the potential to become a major player in the fight against this serious disease.

Genius Sports Limited $GENI

GENI
$5.50 $0.00

Sector.

Best Analyst Price Target: $7.50

Best analyst price target growth: 66%

Genius Sports Limited is a UK-based sports data collection and analytics company. It was founded in 2018 by the merger of several leading sports data and technology companies. Genius Sports provides data collection and distribution solutions, streaming and marketing services for sports leagues, federations and betting operators worldwide.

Genius Sports has several key competitive advantages. It is a market leader in sports data and technology with multi-year partnerships with more than 150 sports organizations, including the NFL, NBA, FIFA and ICC. As a result, Genius Sports has access to the largest volume of quality data in sports. Another advantage is a proprietary technology platform to collect, analyze and distribute this data. Finally, Genius Sports has a strong global reach with offices in 10 countries on 4 continents.

Going forward, Genius Sports plans to further expand its data platform and partnerships with sports leagues and federations. One of the latest acquisitions is Second Spectrum, an artificial intelligence technology firm in the sports industry. Second Spectrum was founded in 2013 by a group of former Microsoft executives. It specializes in advanced machine learning and computer vision for evaluating and predicting performance in a variety of sports, including basketball, football and American football. For example, its technologies power the official NBA game analysis channel.

The company also wants to focus more on providing technology solutions for sports betting to help betting operators and consumers. Last but not least, Genius Sports has an ambition to become a global partner for the collection and dissemination of Olympic Games data.

Genius Sports has proven that it can bring together the worlds of sport, technology and betting. With the growing demand for data and solutions in all these sectors, the company is well positioned for further growth. If it is able to forge more prestigious partnerships and invest in innovation, it could become an absolutely dominant player in sports technology and data. This would make it a very attractive investment opportunity.

Hannon Armstrong $HASI-0.4%

HASI
$31.75 -$0.13 -0.41%

Sector.

Best analyst price target: $43.80

Top analyst price target growth: 53%

Hannon Armstrong is an American company focused on investing in sustainable infrastructure and renewable energy. It was founded in 1981 and is headquartered in Annapolis, Maryland. Hannon Armstrong provides debt and equity financing for energy efficiency, sustainable infrastructure and renewable energy projects throughout the United States.

Hannon Armstrong has several competitive advantages. It is a pioneer in the sustainable infrastructure and renewable energy investment market with over 35 years of experience. As a result, the company has deep know-how, an extensive network of contacts and a reputation among its clients.

Finally, the company works with leading developers and operators of renewable energy projects, giving it access to attractive investment opportunities.

Going forward, Hannon Armstrong plans to further diversify its investments in sustainable infrastructure. For example, it will focus on projects in electric vehicles, energy efficiency in buildings and energy storage. The company also intends to expand into new regions in the US and internationally. Another ambition is to increase the volume of green bonds and other sustainable financial products for investors. Hannon Armstrong is one of the pioneers of sustainable investing. The energy sector is undergoing a significant transformation and the company is ideally positioned to benefit from it. If it can successfully execute its strategic plans, diversify its portfolio and attract new investors, it should continue to generate attractive and stable returns for its shareholders. This would make it an attractive investment opportunity, especially in today's uncertain times.

  • What do you think of the analysts' picks? Do you like any of the companies?

Please note that this is not financial advice. Every investment must go through a thorough analysis.


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