All the firms we follow here at 24/7 Wall St. keep a list for their institutional and retail clients of high-conviction stock picks. These are generally the stocks they not only like on a longer term basis, but those that usually have big upside to the assigned target price. With December here and 2021 right around the corner, many firms on Wall Street have tweaked their lists to account for potential changes in the new year.
The analysts who contribute to the well-respected Raymond James Analysts Current Favorites list of stocks to buy have to provide one stock in their coverage space for inclusion in the list. Hence, it is considered a favorite choice. We screened the list looking for well-known stocks that are not overextended and overbought, and found five that look like very good ideas for growth investors looking to reset portfolios for the coming year. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Given the ongoing lockdowns and stay-at-home edicts, people have plenty of time to work on their vehicles this year, and this is the retail leader. AutoZone Inc. (NYSE: AZO) is the leading retailer and a leading distributor of automotive replacement parts and accessories in the United States.
Each AutoZone store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations and public sector accounts.
As of August 29, 2020, the company had 5,885 stores in the United States, 621 stores in Mexico and 43 stores in Brazil, for a total store count of 6,549.
The Raymond James price target on AutoZone stock is a stunning $1,565, which compares with the much lower Wall Street consensus target of $1,388.65 and a Monday closing price of $1,137.65.
This top stock gapped up in early November but has come back in and offers a much better entry point. CVS Health Corp. (NYSE: CVS) is one of the largest health care companies in the United States, providing retail, mail and specialty pharmacy dispensing services and pharmacy benefits. CVS has become one of the most vertically integrated publicly traded health care companies.
CVS serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, plans offered on public health insurance and private health insurance exchanges, other sponsors of health benefit plans and individuals. This segment operates retail specialty pharmacy stores and specialty mail order, mail order dispensing, and compounding pharmacies, as well as branches for infusion and enteral nutrition services
The company completed a $69 billion purchase of health care provider Aetna in November of 2018 and remains one of the top picks for 2021 and beyond.
Holders of CVS stock receive a 2.95% dividend. Raymond James has a price target of $90, while the posted consensus price target is $81.71. The shares closed at $67.79 on Monday.