RBC Analysts Have Spotted 4 Top Momentum Stock Buys
This leading video game developer should benefit from not only the continuing rise in new console sales, but also the rising trend of mobile gaming. Electronic Arts Inc. (NASDAQ: EA) produces top-selling games and related content and services under the EA brand in various categories, including action-adventure, role-playing, racing and first-person shooter games.
The company, which is very well known for its EA sports games like Madden Football, has made the move into mobile play by adapting many of the top franchise titles, which have been popular for years, into the mobile arena.
The company reported solid earnings, and its Battlefield 1 game has had incredible positive feedback. In fact, the video trailer for the new game had an incredible 21 million view in just four days on YouTube. Some analysts now think that the company’s current guidance for the game is conservative, and the Titanfall 2 game could also ship 10 million to 11 million units. Some analysts also expect 45% growth in next-generation consoles this year, another added bonus for the company.
The consensus price target of $87.43 compares with the most recent closing price of $79.84.
Illinois Tool Works
This is hardly the kind of company some would view as a momentum stock, but the RBC team is positive in the chart. Illinois Tool Works Inc. (NYSE: ITW) is a manufacturer of a range of industrial products and equipment. The company operates through seven segments: Automotive OEM, Test & Measurement and Electronics, Food Equipment, Polymers & Fluids, Welding, Construction Products and Specialty Products.
The company produces components and fasteners for automotive-related applications; equipment, consumables and related software for testing and measuring of materials 18% and structures, and equipment and consumables used in the production of electronic sub-assemblies and microelectronics; adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance; arc welding equipment, consumables and accessories for a range of industrial and commercial applications; and beverage packaging equipment and consumables, product coding and marking equipment, consumables and appliance components and fasteners.
The dividend was recently raised 18% to $0.65 per share each quarter, which translates now to a 2.22% yield. The consensus price target is $117.50. Shares closed near that on Friday at $116.84.
These four solid momentum ideas could provide some serious upside. These stocks are more suited for aggressive growth accounts and could get hit harder if we had a significant downturn.