As is the case every year, the major Wall Street firms we cover here at 24/7 Wall St. come out with lists of stocks they feel will be the top performers for the coming year. While 2020 has been a veritable train wreck compared to most years, with everything from the pandemic that has crippled the economy on and off and killed hundreds of thousands of Americans, to a roller-coaster stock market that dropped 35% in less than a month and has since rallied to all-time highs, and more. Nonetheless, the analysts across Wall Street are doing their jobs, and the top picks are coming out fast.
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Many across Wall Street feel that health care will continue to remain strong in 2021, and Jared Holz, who covers the sector at Jefferies, remains positive as well. A recent research report this was noted about the sector:
Despite an overwhelming consensus view to own value-oriented stocks as economic normalcy inches closer (via vaccine administration), Jared believes growth-oriented stocks will continue to lead the way in Healthcare. He encourages investors to stick with themes that will see sustained momentum into 2021, while leaving some room for stocks/sub-sectors that will participate with cyclical improvement (even if more theoretical) into the early portion of next year.
Five stocks are favorites and all are rated Buy at Jefferies. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Avantor
This off-the-radar stock has outstanding upside potential. Avantor Inc. (NYSE: AVTR) was formed by the 2017 merger of Avantor Performance Materials and VWR. Avantor is a manufacturer of advanced materials and a distributor of chemicals, reagents, laboratory products and equipment, to customers in the biopharmaceutical, health care, education and government, and advanced technology and applied materials industries.
The company also offers a wide range of specialty procurement and other value-added laboratory services to help customers in their research and development and manufacturing operations. Avantor is among the companies expected to see an overall sales boost of at least 15%, thanks to the firm’s bioprocessing research work.
In addition, Avantor recently opened its new biorepository and sample archiving facility in Europe. Strategically located near the international airport in Frankfurt, Germany, the new facility enables researchers to have access to their samples for future research and analysis, or study validation, within 24 hours.
Jefferies has a $30 price target on the shares, which compares with the $28.40 Wall Street consensus target. Shares have traded around $27 in recent weeks.
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