This stock has rallied large, but the analysts see more upside. HubSpot Inc. (NYSE: HUBS) is a cloud-based provider of inbound marketing tools such as website content management, blogging tools, email campaign, search engine optimization, social media monitoring and management, customer relationship management and others for small businesses and midsized companies.
The company’s tools provide a single console for marketing professionals to generate new customer leads, convert leads to customers and customers to repeat customers. The Goldman Sachs report noted this:
Goldman Sachs Software analyst Christopher Merwin is 8%/28% above consensus EBITDA for the next quarter/next 4 quarters. HubSpot has already seen healthy traction in Marketing Hub’s enterprise edition, and our analyst notes that this new product has found market fit with larger customers, filling in the gaps that were causing customers to migrate from the platform after reaching a certain scale.
The $290 Goldman Sachs price objective recently was raised to $332. The consensus target is $289.06, but HubSpot stock was trading at $324.24.
This stock is down a stunning 33% this year and also resides on the Conviction List. Raytheon Technologies Corp. (NYSE: RTX) is an industry leader in defense, government electronics, space, information technology and technical services. The company operates in four principal business segments: Integrated Defense Systems, Intelligence, Information and Services, Missile Systems, and Space and Airborne Systems.
With a history of innovation spanning 97 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I products and services, sensing, effects and mission support for customers in more than 80 countries.
Last year, United Technologies and Raytheon agreed to merge their businesses to create a new aerospace and defense powerhouse. The two companies received unanimous approval from their respective boards, and the merger is finally complete, with the new company now called Raytheon Technologies.
The stock has lagged defense peers and offers solid upside. The report noted:
Goldman Sachs Aerospace & Defense analyst Noah Poponak has recently added the company to the Conviction list and sees 44% upside over the next 12 months. Noah believes that Raytheon Technologies Aerospace division is 45% exposed to the relatively stable aftermarket where the total aircraft in service are now down only 25% year-over-year despite the volatile situation that persists in the aerospace market due to COVID-19. He believes the recovery in global air travel could be quicker from here than broad expectations for a recovery by 2023-2024.
Shareholders receive a 3.14% dividend. Goldman Sachs has set a stunning $84 price objective. The posted consensus target is $78.05, and Raytheon Technologies stock traded at $59.70.
Take-Two Interactive Software
This top video game producer and has cashed in with some super-hot titles. Take-Two Interactive Software Inc. (NASDAQ: TTWO) develops, publishes and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels, as well as under Private Division and Social Point labels.
Take-Two develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption names through developing sequels, and it offers downloadable episodes, content and virtual currency, as well as releasing titles for smartphones and tablets. The company also develops brands in other genres, including the LA Noire, Bully and Manhunt franchises.
In addition, the company publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series and Borderlands labels. It publishes sports simulation titles, comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; and the Golf Club. Additionally, the company offers free-to-play mobile games, such as Dragon City and Monster Legends.
The stock has been on fire, but the analysts remain very positive:
Goldman Sachs Video Games analyst Michael Ng sees 22% upside to Buy rated TTWO over the next 12 months. He believes the company should benefit from a robust content pipeline of 93 titles over the next 5 years. He notes long-term growth will be driven by its robust new game pipeline, managing and building live services, and strong catalog demand.
The Goldman Sachs price target is $199. The consensus target is $186.62, and Interactive Software stock was trading at $166.20.
These are five stocks for growth investors to buy in front of the third-quarter print that could surprise to the upside in a big way. Buying before earnings can be a risky game, so it may make sense to buy partial positions before the earnings report and fill in after the results are out, just in case there is a miss or bad guidance.