All the firms that we follow here at 24/7 Wall St. keep a list for their institutional and retail clients of high-conviction stock picks. These generally are the stocks they not only like on a longer-term basis but those that usually have big upside to the assigned target price. With 2021 almost over and the new year right around the corner, many analysts have tweaked their lists to account for potential changes that 2022 could bring.
Each Raymond James analyst who contributes to the firm’s well-respected Analysts Current Favorites list of stocks to buy has to provide one pick in their coverage space for inclusion in the list. Hence, each is considered a favorite choice.
We screened the list looking for stocks that should perform well in an inflationary environment, like the one that many of us now are experiencing firsthand. Typically, hard assets like real estate investment trusts (REITs) are favorable, as well as dividend-paying commodity stocks. We found five that are all rated Strong Buy at Raymond James.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
APA
This company was long considered an industry leader when it was known as Apache, and the stock is perhaps offering one of the best entry points in the sector. APA Corp. (NYSE: APA) explores for and produces oil and gas properties. It has operations in the United States, Egypt and the United Kingdom, as well as has exploration activities offshore Suriname. It also operates gathering, processing and transmission assets in West Texas, as well as holds ownership in four Permian-to-Gulf Coast pipelines.
The company is one of the largest U.S. exploration and production companies, with 2.3 billion barrels of oil equivalent of proven reserves (63% liquids). It is an explorer, acquirer and exploiter a fiscally conservative company that has grown its reserves and production consistently via acquisitions and organic projects.
APA stock investors receive a 1.87% dividend. The Raymond James price target is $45, well above the $27.63 consensus target. The share price rallied over 7% to close at $27.97 on Monday after the company signed a massive deal with Egypt.
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