3 'Strong Buy' Stocks With 100 Percent Buy Ratings

Which stocks have the most bullish sentiment from the Street? Stocks with only buy ratings and no recent hold or sell ratings. We turned to the innovative Nasdaq Smart Portfolio Stock Screener to help us generate a list of stocks with 100% Street support. This unique screener has many different filters to play around with but here we kept it simple- large or mega cap stocks that have a Strong Buy consensus rating:

 

Selecting these filters brought up a list of 30 or so stocks- all with a significant number of recent buy ratings. Now, to find stocks with 100% Street support, we simply scanned the results for stocks that have only buy ratings as in the screenshot below:

 

 

At the same time, we kept an eye out for the stock’s average analyst price target which provides a useful indicator how analysts see the stock moving over the next 12 months. This enabled us to extract these three top picks- let’s take a closer look:

Align Technology (ALGN): This orthodontics pioneer is the name behind the world’s first clear aligners. Indeed, the company proudly states that it ‘works with technology that brings out millions of smiles.’ And it certainly brings out the smiles of investors too. In the last year the stock has more than doubled to reach its current share price of just over $187.

Now, if we click on the stock ticker, we can see that Align Technology has received 10 straight buy ratings from analysts in the last three months. These analysts are predicting, on average, 4.5% upside potential for ALGN- with the highest price target of $220 (from Morgan Stanley) representing a 17% upside from current levels.

Only recently, on September 15, top Goldman Sachs analyst Robert Jones bumped up his price target on the stock from $185 to $210. His new price target predicts that Align can rise over 10% over the next 12 months. The analyst explains: "we are raising our price target to reflect the company’s acceleration in topline and favorable revenue growth outlook vs. ‘Growth Medtech’ peers."

Jones cites improved traction in the teens segment and a deeper international push as responsible for accelerating the company’s impressive growth outlook.

 

 

Edwards Lifesciences (EW): This first-class medical device company specializes in artificial heart valves and blood flow monitoring. From the perspective of the Street, EW’s outlook looks very promising. Not only has the stock received 9 back-to-back buy ratings, it also has an average upside potential of 19% from the current share price of $111.

Canaccord Genuity analyst Jason Mills is ranked #35 out of 4,695 tracked analysts on TipRanks. In fact, his stats reveal a very impressive 76% success rate and 25.1% average return. He assigned a Buy rating to EW on October 1 after attending the PCR London Valves heart course.

Mills says he “came away impressed with the immense focus and resources being applied by both companies and key opinion leading clinicians to advancing transcatheter mitral valve replacement and repair (TMVR/Re) technologies, namely from Edwards Lifesciences (EW:BUY)…” He concludes that as a result of these unique technologies, a select group of companies, including EW, “have tremendous revenue potential over the long-term.

 

 

Alibaba Group Holding (BABA): This Chinese e-commerce superstar shows no signs of slowing down. The stock has recorded tremendous growth over the last year, shooting up by over $70 to the current share price of $179. Add in the fact that 14 analysts have published buy ratings on BABA in the last three months, and we can see that this is a top stock to track. Meanwhile these analysts are predicting, on average, upside potential for BABA of close to 9% which means shares could rise to close to $200 in the next few months.

Indeed, Alibaba recently received its highest price target yet from Wells Fargo’s Ken Sena of $225 (26% upside). Slightly further behind, with a $190 price target, comes top Stifel Nicolaus analyst Scott Devitt. He reiterated his BABA buy rating following an encouraging meeting with Alibaba management re the company’s just-acquired stake of Cainaiao. 

At the end of September, BABA snapped up a 51% stake in logistics giant Cainiao, which already executes a whopping 57 million deliveries every day. BABA plans to invest about $15 billion in Cainaio over the next 5 years- the goal is to deliver to anywhere in China in 24 hours and anywhere in the world in just 72 hours.

"Management believes a logistics buildout is crucial to maintaining and ultimately building market share over the long term," Devitt commented. "Providing Cainiao with additional capital will allow the logistics provider to accelerate the infrastructure build out." Not only that but BABA will also benefit from synergies as “frictions are removed” and multiple distributor setups minimalized.

Note too that Devitt has a very strong track record with his BABA recommendations. According to TipRanks, Devitt boasts an 85% success rate and 42% average return on BABA stock specifically.

 

 

Find your own ‘Strong Buy’ stocks right now in the sector that interests you with the Nasdaq Smart Portfolio.

 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.