In 2019, for the first year in many, active managers are outperforming index funds. That should be a loud wake-up call to passive investors. After a 10-year plus bull market, the bull is tired, and although central banks are still providing a liquidity security blanket, and interest rates remain at generational lows, this looks to many on Wall Street like the proverbial “stock pickers” market.
With that being the case, and with many portfolio managers and investors looking for stocks that can outperform into year’s end and generate a little finish-line alpha, the analysts at Raymond James were all asked to submit their favorite stock pick. Analysts may only submit one “buy” idea (from their stocks under coverage rated Strong Buy or Outperform) on the list at any given time.
We screened the list for companies with big upside to the Raymond James price target and found five technology stocks that look like solid picks for the fourth quarter and into 2020. All these analyst favorite picks are rated Strong Buy.
This continues to be among the most bought tech stocks on Wall Street, as well as one of the most valuable brands in the world. Alibaba Group Holding Ltd. (NYSE: BABA) runs the largest retail marketplaces (Taobao, TMall) and leading B2B sites (Alibaba.com, 1688.com) in China and Lazada in Southeast Asia. It collects revenues mainly from commissions, marketing services, subscription fees, cloud computing and software, as well as other value-added services.
Alibaba has gone beyond e-commerce and developed into a sophisticated new type of conglomerate in the cyber-era with e-commerce as the base for the rest of the four businesses: logistics, finance, data-computing and cross-border infrastructure. Top analysts expect a whopping 24% compounded annual growth rate between now and 2020 for e-commerce in China.
The Raymond James price target for the stock is a stunning $280, and it compares with a $222.81 consensus target. The stock closed Wednesday’s trading at $177.53 a share.
While this company is a somewhat off-the-radar technology play, there is strong upside potential to the Raymond James target. Axon Enterprise Inc. (NASDAQ: AAXN) engages in the development, manufacture and sale of conducted electrical weapons for personal defense.
The company operates through two segments. The TASER Weapons segment sells conducted electrical weapons, accessories and other related products and services. The Software and Sensors segment includes devices, wearables, applications, cloud and mobile products.
Axon recently announced that it is launching the industry’s first AI-powered system built from the ground up using an ethical design and privacy-centric framework. Axon will integrate Automated License Plate Recognition (ALPR) technology into its next-generation in-car video system.
Raymond James has a gigantic $79 price target, while the posted consensus target was last seen at $71. The shares traded at $52.53 apiece on Wednesday’s close.
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