As the market continues to astound and press ever higher, stock picking is becoming ever more crucial. With the S&P 500 trading at multiples not seen since the late 1990s, investors need to carefully pick core holdings and new portfolio additions. A new research report from Piper Jaffray zeroes in on the firm’s top Focus Calls for investors to buy now.
The Piper Jaffray team has a very eclectic group of stocks in the Focus Call research, and their picks make good sense as they are growing revenues and, in one instance, dominates a specific sector. We highlight four from the list for investors to check out now.
This company is a top small-cap stock for investors to consider. DigitalGlobe Inc. (NYSE: DGI) is a leading provider of commercial high-resolution earth observation and advanced geospatial solutions that help decision makers better understand the changing planet in order to save lives, resources and time. Sourced from the world’s leading constellation, its imagery solutions deliver unmatched coverage and capacity to meet the firm’s customers’ most demanding mission requirements. Each day customers in defense and intelligence, public safety, civil agencies, map making and analysis, environmental monitoring, oil and gas exploration, infrastructure management, navigation technology and providers of location-based services depend on DigitalGlobe data, information, technology and expertise to gain actionable insight.
The Piper Jaffray team like the company’s positive and accelerating revenue growth, the potential for margin upside and the sharp increase in free cash flow. They think all three are possible second half 2015 events. The shares are down 2.5% this year versus the S&P 500 gain of more than 3%, and they trade at a 15% discount in industry peers. The bottom line is the risk/reward at these levels is compelling.
The Piper Jaffray price target for the stock is $46. The Thomson/First Call consensus target is $39.81. Shares closed Monday at $29.54.