Trading volume is exploding and looks to continue, and this stock is a great way to play that theme. Intercontinental Exchange Inc. (NYSE: ICE) was founded in 2000 as an over the counter (OTC) energy market and has since expanded both organically and through acquisitions. The firm offers central clearing services for the futures and OTC markets. Its primary products include agriculture, financial and energy contracts and credit default swaps.
Earlier this year the company completed a transformational acquisition of NYSE Euronext that greatly diversifies the company while offering significant optionality. While the low interest rate environment certainly has been a tailwind for near-term growth, company management believes ICE Mortgage Services is well-positioned to generate 8% to 10% in annualized long-term growth over the next decade. As for the data business, growth in index revenue, fixed income capabilities and ESG position, ICE well for consistent 5% to 6% growth in this business as well.
Investors receive a 1.14% dividend. The $125 Raymond James target price is above the posted consensus target of $118.53. Intercontinental Exchange stock closed Monday’s trading at $105.51 a share.
This technology outsourcing company does significant business with Cisco and its stock is a great way for more conservative investors to play technology. Jabil Inc. (NYSE: JBL) is the ultimate outsourcing stock for technology and more, offering electronics design, production and product management services.
Jabil provides electronic circuit design services, such as application-specific integrated circuit design, firmware development and rapid prototyping services, and it designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies.
The company also specializes in the three-dimensional mechanical design, comprising the analysis of electronic, electro-mechanical and optical assemblies, as well as offers various industrial design, advance mechanism development and tooling management services.
Investors receive just a 0.81% dividend. The Raymond James price objective is $45. The consensus figure is $44.70, and the last Jabil stock trade on Monday came in at $38.22 per share.
Kansas City Southern
This top railroad stock could have a very solid 2021 with the prospect for an economic rebound. Kansas City Southern Inc. (NYSE: KSU) is a Class 1 North American railroad, with a nearly 6,000-track mile network, serving 10 states in the central and south-central United States, as well as Mexico.
With a network spanning across the U.S./Mexico border through Laredo, Texas, the company provides a direct connection between the United States and the industrial centers of Mexico. The company’s Mexican operating subsidiary, Kansas Southern de Mexico, is one of the two largest primary Mexican rail carriers.
The company is expected to generate $500 million in free cash flow for 2020, and analysts expect strong operating leverage potential as volumes start to rebound with an improving economy.
Shareholders receive a 0.92% dividend. Raymond James has set its price objective at $210. The consensus target price is $197.35, and Kansas City Southern stock was last seen trading at $186.17.
These five stocks from the Analyst Favorite list at Raymond James all have a degree of a contrarian play to them, and all offer outstanding value in a time when the stock market is very rich and overbought as well. Plus, they look poised for a solid 2021, given the strong balance sheets and top-flight management teams.