Investing

BofA Securities Is Out With Its Top 10 Stock Picks for Q4

Medtronic

This medical technology giant is a solid pick for investors looking for a safe position in the health care sector, and it was a fairly recent addition to the US 1 list. Medtronic PLC (NYSE: MDT) develops, manufactures, distributes and sells device-based medical therapies to hospitals, physicians, clinicians and patients worldwide. It operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group.

The company announced last year that Blackstone’s life sciences division will invest $337 million into the research and development of its diabetes device technologies. Under the terms of the agreement, Medtronic will receive funding for four diabetes R&D programs over the next several years. Medtronic’s engineering, clinical and regulatory teams will conduct the development work for the programs.

The company pays a 2.02% dividend. The $150 BofA Securities price target is higher than the $145.56  consensus target. Medtronic stock closed at $125.05 on Monday.

Uber

This high-profile company may be the most exciting idea of all. Uber Technologies Inc. (NYSE: UBER) is a mobility platform that services 63 countries, more than 750 ridesharing markets and over 500 Eats markets, and nearly half of its core platform revenue is generated outside of the United States.

The company’s monthly average paying customers represent 1% to 2% of the world’s population on a monthly basis. For rides, Uber acts as an intermediary, connecting riders with drivers. For Eats, the market is three-sided, connecting customers, restaurants and drivers. Uber also has an emerging freight business.

At a Wall Street Journal Tech Live event earlier this year, Lyft CEO Logan Green announced that the company is targeting EBITDA profitability in the fourth quarter of 2021. Lyft’s commentary supports the view that Uber will continue to benefit from decreasing competitive intensity in U.S. ridesharing. Top analysts like the opportunity for Uber stock to benefit from increasing disclosure, and they see potential stock support from sum-of-the-parts valuations.

The BofA Securities price target of $64 is less than the $67.33 consensus target. Uber Technologies stock was last seen trading at $45.72 a share.


The two stocks that the analysts rate as Underperform are AutoZone Inc. (NYSE: AZO) and Williams-Sonoma Inc. (NYSE: WSM). More aggressive investors may want to consider these ideas as possible short sale candidates for the fourth quarter.

These are eight great stock ideas for the final quarter of 2021, along with two potential short sale ideas. The long picks all make good sense for growth portfolios looking to take some profits and move to new positions.

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