Investors are constantly looking for stocks to deliver large returns. While anyone can measure stocks of stocks on their own, as in any area, the benefits to assess the options presented by the market are likely to be the best tools.
This is where we go to the analysts on the Street. Some of the best people are currently employed by the famous investment firm RBC Capital, as the company sits at the top of TipRanks 'best businesses'.
The company, like many in the industry, starts a new year by reassessing the potential of future stocks under its coverage.
With this in mind, we decided to look at three people who have built the investment firm with the potential to retire in 2020. Each of them is currently purchasing consensus ratings from the Street and each has potential. person, according to analysts RBC. a minimum of 25% in the coming year. Let's check them out.
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Cannabis heavy stocks fell in 2019, with some companies losing considerable value on the route (recalling Tilray, Aurora and Cronos). While it is not entirely cannabis stock, while its main business is driven by the alcoholic beverage industry, Constellation in Canopy Growth, which has the largest market cap among Canadian cannabis producers, has invested heavily in the industry. pot is struggling.
Despite the very critical mass of Canopy last year (fourth successive results, Chief Executive Bruce Linton was removed and replaced with a constellation appointment), the recent Constellation F3Q20 report gave an indication of the key areas. Sales of $ 2 billion met $ 1.95 billion of the estimate. More notably, the EPS entered at $ 2.14, by awarding $ 1.84 on the consensus. The company's beer business provided the most important thing, with Especial Constellation Modelo brand increasing by almost 15%, and consolidating itself as the fourth largest beer brand in the United States. The company raised its guidance on EPS for the entire year, too, from $ 9 to $ 9.20 up to $ 9.45- $ 9.55.
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The 5 star analyst said, “The beer business is good and should be used to launch Corona Seltzer (start with FY 21 – March 2020). S&S remains dissatisfied with divesting, but there are a number of green shoots suggesting that the portfolio will be better off after divesting. The canopy is still too much, but with David Klein in place, we think the costs will be under control. Overall, there is a lot of noise, but we are coming towards visibility in the power of earnings of 2021. ”
Currently the Street is divided down the center of the expectations of the alcohol producer. 6 Buys and 6 maintains rankings in opinion Moderate Buying. However, the bulls have a margin as the average target price comes at $ 223 and represents potential gains of 18% in the coming months. (See stock analysis Constellation Brands on TipRanks)
"canvas-us can-text Mb (0) – mt (0) – sm Mt (0.8em) – sm" type "text" content "Nutrien Ltd (NTR)"data reactid =" 29 ">Nutrien Ltd (NTR)
A major name in the agricultural industry, Nutrien was established in January 2018 after a huge merger of Agrium and PotashCorp. The company is the world's largest agricultural input retailer and agricultural fertilizer producer.
Technological progress is a growing catalyst for growth in many different industries, with no difference between the agriculture sector. Nutrien is taking the lead in digital agriculture. The company's digital platform was launched almost two years ago and provides farmers with details of climatic and weather conditions to assist with planting, fertilization and harvesting. The platform proved very successful and only took 6 months from the launch for more than 50% of North American retail sales customers to get started.
Nutrien was also busy on the procurement side, the last of which was not announced last week. The retailer Agrosema Comercial Agricola agreed to buy an important player in the Brazilian agricultural industry. The purchase comes ahead of some other acquisitions since the launch of its digital platform and Andrew Wong from RBC believes that there is more to come.
The analyst said, “We believe the company will continue with the North American enrollment strategy, spending ~ $ 300-500M annually on favorable acquisitions. In Brazil, we expect Nutrien to develop a base gradually through acquisitions which could be priced above typical valuations (due to less natural synergies), but ultimately it will take a similar business model. the highly successful North American firm. The wholesale segment is working on a number of cost saving and expansion projects and should lead to lower potato production costs and higher nitrogen amounts. ”
"To this end, Wong maintained a Nutrien with a rating and price target." t better than $ 60. The figure shows potential gains of 27%. (To see Wong track record, Click here) "So Wong kept a bullish call for Nutrien with a better price and rating target of $ 60. The figure shows potential gains of 27%. (To see Wong's record, Click here)
Which side of the area does the Street represent in terms of the potential of the fertilizer producer, then? On the growing side, as it happens. Consensus rating breaches Strong Purchases in 6 Bays and 2 Properties. The average target price comes at $ 56.60 and therefore represents space for a further 20% growth. (See nutritional stock analysis on TipRanks)
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Another giant in the agricultural industry is the largest potato and phosphate producer in the United States, the Mosaic Company.
2019 had a mosaic problem and lost its share price by almost 25% during the year. False margins, bad weather and the impact of the US and Chinese trade war were associated with suppressing the share price. Due to the recent easing of trade tensions, Mosaic stock ceased from the doldrums in December; China is one of the company's largest markets and is willing to buy more US agricultural products as part of the phase one trade, and may be a source of aid to US fertilizer producers.
Like Nutrien, Mosaic was also busy in Brazil; in 2018, the company acquired the Vale's phosphate and potassium business. By the end of last year it had $ 275 million rate synergies, with the company targeting a further $ 200 million of EBITDA interest from the business by the end of 2022.
Despite 2019 disappointment, Andrew Wong, who also covers the MOS, believes that the phosphate markets are “near the bottom.” The analyst said, “Mosaic provides a strong leverage for the potato and phosphate markets, and we believe that investment is an investment. The production of distribution and production assets in Brazil adds to the company's exposure to the fastest growing agricultural market and provides significant synergy potential. ”
With this in mind, Wong reaffirms an Enforcement rating for the potato producer, as well as a $ 26 price target, suggesting that it could be upwards of 26%.
With 6 Buys, 1 Hold and 1 Sell, Mosiac gets a compromise rating Moderate Buy from the Street. If the target price of $ 24.13 can be met, investors represent 17% over the next 12 months. (See mosaic stock analysis on TipRanks)