RACE: Four Stocks Zooming Higher
The market is trending higher despite the initial wave of the coronavirus not fully receding. One reason Americans are investing their stimulus dollars in the market, with some seeing it as a gambling opportunity while casinos and sportsbooks are closed.
Our exclusive POWR Ratings are updated daily to provide investors with invaluable insight into the market’s most interesting opportunities. Let’s take a look at four of the more interesting POWR Rating upgrades: Ferrari (RACE), Black Knight (BKI), Five9 (FIVN), and LivePerson (LPSN).
Ferrari N.V. Common Shares (RACE – Rated “A” Strong Buy)
The coronavirus is exacerbating income inequality. In part, this is a byproduct of the Fed’s zero-rate policy which is leading to inflation in financial assets which are predominantly owned by a small portion of the population. It’s also a positive development for a stock like RACE.
Potential buyers of Ferraris certainly fall in this category and are likely to be beneficiaries of the current climate. RACE is a POWR Ratings star with an “A” Trade Grade, an “A” Buy & Hold Grade, and an industry rank of #3 out of 26 stocks in the Auto & Vehicle Manufacturers segment. RACE has at least a “B” Grade in every POWR Ratings Component.
Check out RACE's price returns going back to 2016 and you will find it’s positive in every period but except for a mild 5% decline in 2018. RACE had a 66.47% price return in 2019 alone. RACE will likely move higher in 2020. If RACE’s growth can continue, it will be an asset to portfolios.
Black Knight Financial Services (BKI - Rated “A” Strong Buy)
The housing industry is surprisingly healthy considering the economic destruction caused by the pandemic. Mortgage applications briefly dipped yet should bounce back to normal levels because interest rates are at an all-time low.
BKI integrates technology, automates workflows, and provides analytics for the mortgage industry. BKI’s hosting and software solutions serve as the foundation for loan origination, servicing, and settlements. The company’s analytics and data provide a litany of services including automated valuation models, lead generation, prepayment models, collateral risk scores, and more.
BKI has an “A” Trade Grade and an “A” Buy & Hold Grade, an industry rank of 9 out of 134 companies in the Financial Services industry, and positive price returns on nearly every timeframe. The stock had a 2019 price return of 43%, a three-year price return of 82%, and a five-year price return of 142%. The analysts’ average price target for the stock is $78, indicating an 8% upside.
Five9 (FIVN - Rated “A” Strong Buy)
Cloud computing is growing in importance and necessity as workers transition away from the office and into their homes. FIVN has benefitted from this phenomenon, moving up the POWR Ratings to a Strong Buy rating. This company provides essential cloud software for virtual call centers. Examples of the company’s solutions include predictive dialing, speech recognition, voice applications, and workforce management.
FIVN’s major customers are financial/banking businesses, healthcare companies, and business process outsourcing groups. FIVN has “A” grades across the POWR Rating Components board along with a rank of 15 out of 82 stocks in the Software - Application space.
FIVN’s price returns are positive on multiple timeframes, highlighted by a one-year price return of 103%, a three-year price return of 361%, and a five-year price return of a whopping 1,840%.
LivePerson (LPSN - Rated “B” Buy)
Nowadays, most people prefer interacting with each other by way of text instead of making a phone call. LPSN provides web-based chat platforms that enhance website interactivity. The company also tracks ad responses, provides customer service resources, and empowers businesses to scale seamlessly.
LPSN has a three-month price return of 72%, a one-year price return of 37% and a three-year price return of 217%. This stock just might move toward its 52-week high of $45.21 by the end of the summer.
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RACE shares . Year-to-date, RACE has gained 2.75%, versus a -3.52% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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