Lately it's all about growth. Stocks are high and going higher. The gains we see now are the current extension of a long-term trend – markets have been rising for several years and their slippage during last year's corona crisis seems to have been more than anything else in retrospect.
As President Kennedy said long ago, a rising tide lifts all boats – and right now a savvy investor can find enough boats to jump on.
So let's go find some of those soaring boats. Using the Investing Insights platform, we've held onto three exciting growth names, according to the analyst community. Each analyst-backed ticker will yield more profits on top of the already impressive growth. Importantly, these stocks have a 'Perfect 10' smart score score. Let's take a closer look.
Evolent health (EVH)
We start in healthcare, where Evolent Health (NYSE:) is a service company for medical providers. Evolent provides administrative and clinical services to payers and providers in the healthcare system, working to reduce costs and maintain quality of care. Evolent's services include core administration, actuarial services, risk adjustment, pharmacy benefit management, medical and behavioral health integration, and an integrated technology platform to track it all efficiently.
Evolent saw steep EPS losses in late 2019 and early 2020, coinciding with the worst of the coronavirus crisis – but losses have moderated in recent quarters. For its most recent report, 1Q21, the company showed a net loss of 12 cents per share, but that was much better than last year's EPS loss of 93 cents.
During the first quarter, Evolent announced several new partnerships with healthcare providers, including a network of primary care clinics. The company's platform currently manages more than 11.6 million patient records.
Evolent shares are up 195% in the past 52 weeks, but would you believe it could rise another 35%? Trust analyst Sandy Draper does. The analyst rates EVH as a buy with a price target of $31.
"We continue to believe that EVH can grow its revenue 15%-20% annually and realize positive EBITDA margin expansion. Recent wins, including Florida Blue, are driving growth this year and new wins in 1Q21 ( including a major undisclosed health plan) should boost growth in 2022. We don't think current valuations reflect improving growth dynamics and low-risk balance sheet," the 5-star analyst said.
Draper went on to list some key benefits that Evolent offers to market investors: "We view Evolent as a unique play on the transformative shift from the current fee for service environment to value-based care in the US … We believe that Evolent differentiated by its own underlying technology platform called Identifi, expertise… and proven track record with existing clients.”
Overall, this stock has 5 recent analyst reviews on file, and they split 4 to 1 in favor of the Buys over the Hold. The stock currently trades at $22.79 and has an average price target of $26.80, giving the stock ~18% upside potential. (See EVH stock analysis)
Northern Technologies International Corporation (NTIC)
Our modern world has given us a wealth of technologies and products that have improved our lives – as well as brought a host of unwanted side effects in the form of corrosion and pollution. Northern Technologies (NASDAQ:) is engaged in corrosion prevention and develops a line of products including packaging products and anti-corrosion agents and removers. The products prevent waste and encourage recycling by helping to refurbish and remanufacture engines and other industrial parts.
NTIC has been selling its proprietary ZERUST products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets for over 40 years, and has focused and expanded into the oil and gas industry in recent years .
Meanwhile, NTIC's Natur-Tec line has been in the news recently, winning a "Masters of Innovation" award and highlighting its line of biodegradable plastic substitutes.
The company recently reported its financial results for fiscal 3Q, ending March 31 of this year. The report showed a 58% increase in net sales yoy to $15.4 million, setting a new business record. Earnings per share were also positive, at 21 cents, well above the 11 cent loss reported in the same quarter a year ago.
2021 has been nice for NTIC to say the least. Since the beginning of the year, shares have skyrocketed by 75%.
NTIC's solid performance has caught the eye of Northland analyst Gus Richard, who sees the company in a good position, with demand recovering and production increasing.
“Over time, we think there is a lot of profit growth from ZERUST Oil & Gas. In addition, in the fall, as the reopening continues, NTIC's NaturTec compostable plastic business will continue to recover. ZERUST is above pre-pandemic levels, demand is likely to level off in FY22,” the analyst noted.
Before this, Richard rates NTIC as a buy, along with a price target of $24, indicating confidence in ~31% growth for the coming months.
Richard's is the only review currently available for NTIC stock, which costs $18.27. (See NTIC Inventory Analysis)
Lands' End, Inc. (LE)
For the latest stock, we switch and look at retail. Lands' Founded in Chicago and now based in Wisconsin, End (NASDAQ:) is a well-known name in mail order and online sales, although it has a network of brick and mortar stores. The company mainly deals in casual wear, footwear and household goods and accessories.
In May of this year, Lands' launched End official its 3rd party seller platform, Lands' End Marketplace. The platform was soft-launched for beta testing in June of last year, promising rapid expansion. Marketplace will display the range of products sold through Lands' End is offered expand, while third-party customers can take advantage of Lands' established customer service and support End.
In terms of financial data, Lands' reported End in the first quarter of this year strong yoy earnings in sales and earnings per share. The 1Q21 report showed net sales of $321.3 million, up 48% from the previous year; the company's global e-commerce grew 44.4% to $260 million. The company's net income was $2.6 million, or 8 cents per share. This was a dramatic reversal after the hefty $20.6 million loss reported in 1Q20.
In the past 12 months, while Lands' End strong yoy, the company's stock rose a whopping 398%. Still, Craig-Hallum analyst Alex Fuhrman believes the stock still has some room to grow.
"We believe there is significant opportunity for upward estimates in the second half of the year as millions of Americans return to their workplaces for the first time in more than a year and host an unprecedented rewards event." Lands' End has a wide range of clothing suitable for the office, and should generally benefit from a pandemic-accelerated shift in workplace fashion to more comfortable, casual wear," Fuhrman wrote.
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The analyst added: "Looking at the balance sheet for 2021 and beyond, we see continued growth in e-commerce as 2020 growth was likely the result of market share gains from physical enemies rather than ' ;pantry loading', while the retail and uniform channels have the potential for substantial growth in the future.”
Based on the above, Fuhrman rates LE a Buy along with a target price of $50. This figure implies ~20% growth over the next 12 months.
LE has slipped under the radar of most analysts; Fuhrman is currently the only bull in the picture. (See LE stock analysis)
For more ideas for stock trading at attractive valuations, visit Investing Insights.
