Five stocks like Nvidia with more room to run
Bank of America named a slew of stocks that remain best positioned heading into year end. The Wall Street investment bank says companies like Nvidia are compelling, with more room to run. Other buy-rated names screened by CNBC Pro include: Palantir, Robinhood, Supernus Pharmaceuticals and Crane. Robinhood The stock trading company is “firing on all cylinders” the firm said after Robinhood’s recent quarterly results where it reported a top and bottom line beat. Analyst Craig Siegenthaler did admit that the stock’s valuation is getting “full,” but says he’s sticking with Robinhood as the company continues to innovate. “While historically focusing on smaller accounts, mobile first, younger generation clients, HOOD has made headway expanding their TAM [total adddressable market] through further client penetration,” he wrote. Siegenthaler also raised his price target to $166 per share from $157. “We believe HOOD is positioned to perform well long-term as the broker continues to scale its business, launch additional products and capabilities, deepen current client relationships, and expand its TAM both domestically and internationally,” he said. Shares are up a whopping 245% this year. Crane Analyst Ronald Epstein said in a recent note that the industrial company has described itself as boring. Not according to Epstein, however. “Even though the company describes their consistent performance as ‘boring’ we remain excited and bullish on Crane’s ability to remain boring and execute across the company from operations to portfolio shaping,” he wrote. Epstein says the company offers stability in an uncertain macro as Crane offers a wide-ranging portfolio including aerospace and defense. “The company is poised to expand margins in its legacy businesses while also looking to expand its portfolio across Aerospace & Electronics and Process Flow Technologies through strategic M & A,” he added. Shares are up more than 20% this year. Palantir “You have to see it for yourself,” analyst Mariana Perez Mora said in a recent bullish note on Palantir. Bank of America says there’s a slew of positive catalysts as the tech giant is well positioned for share gains. “We continue to view Palantir as the best-in-class AI enabler, integrator, architect, and developer across peers,” the firm wrote. In addition, growth is accelerating as the company continues to accumulate new business and new contracts. “In the quarter, total customer count increased 45% Y/Y and U.S. Commercial customer count up 65% Y/Y,” she said. Meanwhile, shares are up 123% this year and the firm increased its price target to $255 per share from $215. “Palantir’s dominant position in the AI-powered software market, differentiated end-to-end, ontology-powered & highly secure solutions and first mover advantages support strong profitable growth in the midterm,” she said. Supernus Pharmaceuticals “Underappreciated growth story fueled by three key brands We initiate coverage of Supernus (SUPN) with a Buy rating and $65 price objective. Our investment thesis is anchored on the company’s underappreciated branded CNS (central nervous system) growth drivers which treat ADHD and motor complications in advanced Parkinson’s disease.” Nvidia “Reiterate Buy, top sector pick as AI demand continues to strengthen, supply is being well-managed, EPS estimates continue to be revised up, while the stock’s valuation remains compelling given potential for 40%+ EPS growth rates. … Our positive view on Nvidia is based on its underappreciated transformation from a traditional PC graphics chip vendor, into a supplier into high-end gaming, enterprise graphics, cloud, accelerated computing and automotive markets.” Crane “Even though the company describes their consistent performance as ‘boring’ we remain excited and bullish on Crane’s ability to remain boring and execute across the company from operations to portfolio shaping. … The company is poised to expand margins in its legacy businesses while also looking to expand its portfolio across Aerospace & Electronics and Process Flow Technologies through strategic M & A.” Robinhood “Firing on all cylinders while valuation is getting full. … We believe HOOD is positioned to perform well long-term as broker continues to scale its business, launch additional products & capabilities, deepen current client relationships & expand its TAM both domestically & intl. While historically focusing on smaller accounts, mobile first, younger generation clients, HOOD has made headway expanding their TAM through further client penetration.” Yum China “Yum China has China’s largest network, solid consumer know-how, strong branding and a leading supply chain. We believe the company’s solid operations and opportunities around self-help initiatives would support steady growth. Capital return could also provide downside protection. We see risk-reward to the upside.”
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