As the market continues to hit new highs, investors may wonder how high it can go. All three major indices hit new intraday records yesterday, and both the S&P 500 and Nasdaq hit record closing highs as well. It looks as though momentum from November has continued into December…
One way to find stocks with the potential to soar is through their upside potential. To get a stock’s upside potential, you need to look at a stock’s current price and compare it to their price targets based on Wall Street sell-side analysts’ consensus. Wall Street analysts are responsible for covering ten to twenty stocks. Their coverage provides in-depth research on a company’s current financial situation and prospects, which give the basis for their stock ratings and price targets.
Luckily, we don’t have to read analyst reports to find their price targets. A new feature of StockNews.com is the Price Target. The Price Target is an average of target prices from analysts covering the stock. StockNews also provides a stock’s Upside Potential, which is the percentage a stock could gain to meet its price target. I did a search for financially sound companies with strong upside potential and came up with a list that included Honda Motor Company, Ltd. (HMC – Get Rating), PulteGroup, Inc. (PHM – Get Rating), Group 1 Automotive, Inc. (GPI – Get Rating), and Knight-Swift Transportation Holdings Inc. (KNX – Get Rating).
Believe it or not, but HMC was originally a motorcycle manufacturer. Today, the company makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. The company posted strong financial results last month, outperforming both earnings and revenue estimates. Earnings were up 26% year over year.
In addition, due to the gradual recovery of the auto market, HMC has boosted its fiscal 2021 guidance. The company has been focused on developing electric and self-driving cars, which bodes well for its future. In its Honda 2030 Vision, HMC Honda aims to generate 66% of its global auto sales from electric vehicles by 2030.
Its collaborations with General Motors (GM) and GAC Group should help expand its business and bolster its growth prospects. Its joint venture with GAC Group will allow the company to build electric battery cars and plug-in hybrid vehicles in China. The company has also taken initiatives to control costs and optimize production capacity.
The stock is rated a “Strong Buy” in our POWR Ratings system. It holds a grade of “A” in Trade Grade, Buy & Hold Grade, and Industry Rank, and a “B” in Peer Grade. The company is also ranked #3 in the Auto & Vehicle Manufacturers industry. The stock currently has an upside potential of 16%.
PHM is one of the largest homebuilders in the United States, operating in 44 markets across 24 states. The company’s focus on entry-level homes has served it well. There has been a growing demand for lower-priced homes due to affordability concerns in the U.S. housing market. First-time buyers represented 30% of PHM’s closings in the third quarter, which was an increase from the same quarter last year. In addition, first-time orders increased 39% year over year for the quarter.
The company’s land acquisition strategies have…
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