Now that the bull market has finally reminded investors that a 10% correction can be seen again, investors are looking for value and opportunity among the rubble. 24/7 Wall St. reviews dozens of analyst upgrades and downgrades each day of the week, or hundreds of such calls each week. The goal is simply to find hidden value stocks and new trading or investing ideas for its readers. Many of these analyst calls cover stocks to buy with ratings of Buy, Outperform or occasionally a Strong Buy rating.
Traditional Buy ratings in Dow or S&P 500 stocks come with far more aggressive calls with upside of 50% or more. When analysts see much higher potential returns, there is generally far more risk than investors would expect from traditional Dow or S&P 500 stocks.
This past week brought up many analyst calls with very aggressive price targets. Some of the calls were opportunistic due to a serious sell-off, but other calls were just aggressive in and of their own right for explosive growth and special situations. We tracked five analyst calls in which analysts on Wall Street were calling for upside of roughly 100% to 200%, and then here are 10 analyst calls with upside projections of 50% or more.
Again, it cannot be stressed enough that calls of this nature are very risky. Some of these stocks are highly speculative, with few analysts and institutional investors following them, and some of them are simply battered and out of favor.
To be sure investors understand the higher risk profile, 24/7 Wall St. has tried to include at least one negative development in the stock or a word of caution. After all, we don’t want you thinking we believe that analysts are omniscient or that the future has been set. At the end of this report, we go even deeper into risk disclosures. Here are 10 analyst picks from the week of September 21 to September 25 with implied upside of 50% or more.
ADT Corp. (NYSE: ADT) is not normally a company we would expect to see 50% upside in, but the stock has tanked in 2015. ADT was started as Outperform with a $46.00 price target at Credit Suisse on Wednesday. This was against a prior $30.54 close and versus $30.70 at Friday’s close. ADT has a consensus analyst price target of $43.11 and a 52-week range of $29.61 to $42.88. While this call looks aggressive, there are even more aggressive analyst price targets.
Aerojet Rocketdyne Holdings Inc. (NYSE: AJRD) was looking great before the sell-off, but the market has been hard on it. Oppenheimer issued a note on Thursday effectively saying that the market has it wrong and is too focused on the downside in what is considered a very “special situations” stock. Oppenheimer maintained its Outperform rating and kept its $26.00 price target.
The take for upside in Aerojet Rocketdyne is that the ULA announcement ignored the upside in its model, is solely focused on the downside, and a lack of communications from the company are to blame. The reality is that Aerojet Rocketdyne is riskier than traditional defense contract outfits.