3 Strong Buy Stocks Hand-Picked by Wall Street for January 2021
While the governments may signal their fossil fuel censure, many forecasts suggest we will need oil for decades to come. Likewise, an influx of people are likely to experience back pain issues with the prominence of remote work and schooling. These three stocks with a Strong Buy ranking cover such dependabilities.
With the election fallout out of the way, what does the Biden administration mean for the 2021 stock prospects? Wall Street analysts continue their tradition of picking the most resilient stocks at the beginning of the year.
3 Stocks with a Strong Buy Rating
The following stocks have received a Strong Buy rating, forecasted to gain a respectable price increase over the year.
1. Twilio (NASDAQ:TWLO)
Founded in 2008 in San Francisco, Twilio is at the forefront of cloud-computing platforms. By providing the entire communication cloud range, from text to video, within its flexible API (Application Programming Interface), Twilio can provide easy coms integration for any business. More importantly, this model makes Twilio attractive because it offers on-demand scaling and transparent pricing.
Consequently, Twilio’s stock gained 244% in value during 2020, having traded at 26 times the projected sales. Overall, the upending of social norms due to pandemic concerns boosted the company’s shares by 1300% over a three-year period. While Zoom remains the videoconferencing king, Twilio represents a long-term premium solution for businesses seeking a reliable and secure communication infrastructure thanks to its user authentication feature.
Even with the current outstanding growth, analysts view Twilio as undervalued. Such sentiment comes from the firm’s GTM (Go To Market) strategy and taking the load off costly, customized platform development. Accordingly, Twilio should achieve another growth year of about 40%.
2. Talos Energy (NASDAQ: TALO)
Although 2020 indeed saw a record drop in oil consumption, the demand is on a recovery trajectory. While those interested in socially responsible investing tend to avoid such companies, their future is still far from sealed.
As a result, the Talos Energy oil production and exploration company, with its Gulf offshore rigs, suffered a net loss for Q3 2020. However, its $135 million revenue constituted a 53% increase. This is a testament to the company’s cash flow maximization, which you can learn more about by performing technical analysis. At the end of 2020, Talos achieved a $353 million liquidity pool, of which $321 million is in credit and $32 million is in cash.
On January 14, the company successfully completed its refinancing of near-term bond maturities, by raising over $670 million in proceeds. Consequently, its liquidity pool will be even greater for 2021, at about $550 million. In light of this, Talos has plenty of room to upscale its operations in the Zama oil field, Gulf of Mexico, with its estimated 2 billion barrels yet to be extracted.
Moreover, Talos’ PDP (Proved Developed Producing) values seem to be lagging behind its potential, making the oil company likely to gain a 44% growth at the end of 2021.
3. SI-Bone (NASDAQ:SIBN)
Biotech stocks pose a good choice if they are either close to a much-valued breakthrough, or continue to provide unique treatments. SI-Bone, founded in 2008, San Jose, focused its efforts on dealing with sacroiliac (SI) joint pain (lower back), thanks to its patented iFuse Implant System. Representing an innovative minimal invasion surgery, it has been used in over 50,000 cases worldwide. iFuse has been vetted by over 90 peer reviews, including two randomized controlled trials, all showing safety and significantly improved life quality.
Expectedly, due to the focus on the coronavirus, surgeries across the board have plummeted during 2020 and so did the company’s revenue. However, Q3 2020 saw a steady rise in pent-up demand, ending with a 42% revenue increase. The company’s long-term debt currently holds at $39.4 million, against its liquidity pool of $132 million.
Weathering through the pandemic slump, SIBN is poised to expand its SI lower back pain treatment thanks to direct-to-patient marketing, increased surgeon training, and sales force growth. Combined with the still-lingering pandemic uncertainty, these factors account for a Strong Buy with a projected 19% growth for 2021.
Do you think “viral strains” headlines will make 2021 just as bad as 2020? Let us know in the comments below.
Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.