For the first time in many years, active managers are outperforming index funds year to date, and that should be a loud wake-up call to passive investors. After a more than 10-year-old bull market, the bull is tired. Although central banks are still providing a liquidity security blanket, and interest rates remain at generational lows, this looks to many on Wall Street like the proverbial “stock pickers” market.
With that being the case, and with many portfolio managers and investors looking for stocks that can outperform into year’s end and generate a little finish line alpha, the analysts at Raymond James were all asked to submit their favorite stock pick. The analysts may only have one “buy” idea from their stocks under coverage rated Strong Buy or Outperform on the list at any given time.
We then screened the list for companies with big upside to the Raymond James price targets and found five that look like solid picks for the fourth quarter and into 2020. All these favorite picks are rated Strong Buy.
This continues to be among the most bought tech stocks on Wall Street. Alibaba Group Holding Ltd. (NYSE: BABA) runs the largest retail marketplaces (Taobao, TMall) and leading B2B sites (Alibaba.com, 1688.com) in China and Lazada in Southeast Asia. It collects revenues mainly from commissions, marketing services, subscription fees, cloud computing and software, as well as other value-added services.
Alibaba has gone beyond e-commerce and developed into a sophisticated new type of conglomerate in the cyber-era with e-commerce as the base for the rest of the four businesses: logistics, finance, data-computing and cross-border infrastructure. Top analysts expect a whopping 24% compounded annual growth rate between now and 2020 for e-commerce in China.
The Raymond James price target for the stock is a stunning $280, while the posted consensus target price is $224.34. The stock closed Thursday’s trading at $166.07 a share.
This top health care stock is a solid and safer play now. Becton Dickinson and Co. (NYSE: BDX) is a diversified global medical technology company that produces medical devices, instrument systems and reagents for the health care, life sciences research, clinical, diagnostic and pharmaceutical markets.
The company has grown into a large medical conglomerate with over 49,000 employees covering nearly 50 countries worldwide. The CareFusion acquisition in 2015 significantly expanded the company’s medical technology footprint in infusion and medication management.
Becton Dickinson shareholders receive a 1.25% dividend. Raymond James has a price target of $288, and the consensus figure was last seen at $267.38 a share. The stock closed trading at $248.54 on Thursday.