Investors, rejoice! The POWR Ratings have been calculated, and dozens of stocks have been upgraded to either "Strong Buy" or "Buy" ratings. Our proprietary POWR Ratings evaluate stocks based on a number of factors. These ratings are calculated daily, and upgrades reflect positive movement in stocks.
It was only one month ago when it appeared as though the stock market was headed for bear territory. However, now that several effective COVID-19 vaccines have emerged, life might be getting back to normal, paving a path for the market to soar to new heights in 2021.
Below, I analyze four stocks that were recently upgraded in the POWR Ratings: Altice USA (ATUS), Gartner (IT), Penske Automotive Group (PAG), and NCR Corporation (NCR).
Altice USA (ATUS)
When it comes to broadband communication and video services, few providers are more intriguing than ATUS. The company delivers everything from pay-tv to broadband, wireless internet hotspot access, telephone services, and proprietary content to nearly 5 million people located in more than 20 states. These services are provided through the ATUS Suddenlink and Optimum brands.
The POWR Ratings show ATUS has an "A" grade in the Trade Grade component along with "B" grades in the Peer Grade, Industry Rank, and Buy & Hold Grade components. Out of 14 publicly traded stocks in the Entertainment - TV & Internet Providers industry, ATUS is ranked fourth. Check out the analysts' take on ATUS, and you will find they are fairly bullish, setting an average price target of $36.89, indicating a potential 6% upside. The stock is currently priced 75 cents below its 52-week high of $35.47.
Aside from making money through TV, phone, and internet service, ATUS also generates revenue through its advanced advertising and data business that provides advertising solutions to companies in a wide array of industries. If all goes as planned, ATUS will implement its fiber network to provide customers with broadband speed upwards of 10 Gbps.
Gartner (IT)
IT provides advisory and research services to tech professionals, including chief technology officers and chief information officers. IT services are also sold to those who work for governments. Check out the IT POWR Ratings, and you will find the stock has "A" grades in the Industry Rank, Buy & Hold Grade, and Trade Grade components. The stock is ranked in the top 5 out of 14 publicly traded companies in the Outsourcing - Tech Services industry.
IT has a 2019 price return of 20.54% along with a three-month price return of 22.33%. The stock's five-year price return is 76.07%. IT's total contract value has spiked 5% on average, hitting an impressive $3.4 billion.
Though IT's revenue is down 1% from this point last year, adjusted earnings are up 30% from the same quarter one year ago. Furthermore, IT's brass boosted its guidance for the year, largely due to a $170 million spike in aggregate sales.
Penske Automotive Group (PAG)
Sales of both used and new vehicles will pick up as economic activity gradually returns to normal, ultimately benefitting the likes of PAG. PAG also makes money from the sale of products and services related to automobiles, including aftermarket products, collision repair, parts, finance/lease contracts, and more.
The POWR Ratings show PAG has "A" grades in the Buy & Hold Grade and Trade Grade components along with a "B" Industry Rank. PAG is ranked in the top 10 out of 34 Auto & Vehicle Manufacturers stocks. PAG has a year-to-date price return of 15.91%, a six-month price return of 45.39%, and a three-year price return of 28.66%.
NCR Corporation (NCR)
NCR makes it easier for businesses to serve customers, primarily through payment processing, self-service tech, and point of sale terminals. Slightly more than half of NCR's revenue stems from banking. NCR's digital banking is gradually disrupting this fairly static industry. Furthermore, NCR provides software solutions for various accounting-related and fraud prevention services.
The POWR Ratings show NCR has an "A" grade in the Industry Rank, Trade Grade, and Buy & Hold Grade components. NCR is ranked 12th out of 46 stocks in the Consumer Financial Services industry. The stock has a 2019 price return of 52.34%. NCR's three-year price return is 5%, and its five-year price return is 26.47%.
The analysts are high on NCR, setting an average price target of $37.14, indicating a potential 10% upside. The success of NCR's recent virtual investor day has the potential to drive the stock higher.
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ATUS shares were trading at $34.78 per share on Friday morning, down $0.11 (-0.32%). Year-to-date, ATUS has gained 27.21%, versus a 14.85% 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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