4 Analyst Stock Picks With 50% to 100% Upside Potential

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As we head into a huge stretch of earnings, many investors are wondering if a fourth-quarter rally is really in the cards, or whether we will start hitting lower higher highs and lower lows. History remains on the bulls’ side, especially after the big sell-off of late August and September. Aggressive traders looking for solid ideas with big upside from all over Wall Street will like a new research note from Stifel, which features four stocks to buy with massive potential.

All four stocks are rated Buy and all have huge upside targets. While they are more suited for aggressive accounts with a higher risk tolerance, they vary in actual risk profile.

Pandora Media

This company is facing more and more competition, but it continues to hold its own. Pandora Media Inc. (NYSE: P) is clearly not the only company with a big desire to be in the music streaming business, but it is the current leader in installation and use in the automotive world, with a penetration rate right at 70%, and hopes to stay that way.

Stifel points out that the webcasting royalty hearings at the Copyright Royalty Board are not complete, and final initial determination of rates are expected in December. Shares of the stock have jumped more than 40% over the past three months, as investors appear to be more confident that ongoing concerns related to royalties rates and obligations aren’t as negative as initially thought. Plus the company is very close to settling a pre-1972 royalties claim for much less than expected.

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Pandora is about to report earnings , and Stifel is anxious to hear the details of Pandora’s acquisition of Ticketfly. The firm is curious how Pandora calculates the target addressable market opportunity for this business, and what type of impact Pandora thinks it can make by integrating ticket sales into its Artist Marketing Platform.

The Stifel price target for the stock is $30, and the Thomson/First Call consensus price target is $21.86. The shares closed on Tuesday at $19.33.

Vale

This is a total contrarian play, but savvy investors could make big money here. Vale S.A. (NYSE: VALE) engages in the research, production and sale of iron ore and pellets, nickel, fertilizer, copper, coal, manganese, ferroalloys, cobalt, platinum group metals and precious metals in Brazil and internationally.

Vale’s Bulk Material segment produces and extracts iron ore and pellets, while its Base Metals segment produces and extracts non-ferrous minerals, including nickel and copper. The Fertilizers segment provides a group of nutrients, such as potash, phosphates and nitrogen. The company also invests in energy generation through operating hydroelectric plants and centers, as well as produces steel.

While all the commodities have been stuck in bear markets, and the Stifel team actually lowers estimates for the quarter, they see this being somewhat offset by lower production costs due to operational efficiencies and currency tailwinds. The bottom line: the entire segment has been a nightmare, and this may very well be the proverbial winner at an ugly dog show contest.

The Stifel target price drops to $10 from $13, while the consensus target is $5.48. Shares closed Tuesday at $4.46.

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