We have another top-notch A-rated stock, which amounts to our highest recommendation of a strong buy.
Contexte
CareDx section, when discussing the Zen Ratings quant model
Transcription Complète
I want to share with you three companies that just crushed earning season and look prime for even much more upside. Not only do they score big on the earnings front, but they also scored big with strong buy recommendations from our coveted quant ratings model and from top Wall Street analysts. In this video, I'll break down all the details on what makes these three stocks so attractive going forward, plus I will share how to spot similar big winners on your own in the future. We'll start with the oil refiner HF Sinclair with the symbol of DINO as in the dino dinosaur logo that they've had on the famous Sinclair uh gas stations for years and years and years. In case you're not familiar, this is a diversified energy company, gasoline, diesel, jet fuel, renewable diesel, and lubricants. They're raw materials that keep the country moving along. Now, before we go on any further on HF Sinclair, I should probably tell you who I am. I'm Steve Reiter Meister, but everyone calls me Righty. I'm a partner at wallstreetzen.com where I helped develop the Zen Ratings Quant Model and run a free weekly live trading session every Monday night at 7:00 p.m. Eastern Time. I'll tell you a bit more about that in a minute. One quick aside before we dig in, if you find market insights like this useful, then tap that like button. It tells YouTube to show you more videos like this one in the future. So, why is HF Sinclair so exciting right now? Because in recent memory, they beat the absolute stuffing out of earnings. Analysts expected to see earnings around $4.49 per share and they came in at $5.31, nearly a full dollar higher. And this wasn't a one-off. This company has now topped forecast handily for six quarters in a row. Let's talk about the view from Wall Street. Right now, 14 analysts cover the stock. The most bullish voice belongs to the analyst at Goldman Sachs, who is ranked in the top 5% of his peers for his stock picking excellence. Now, his street high target price points to serious upside in the year ahead. Gladly, our Zen Ratings Quant Model agrees with this bullish outlook. Note the Zen Ratings runs every stock through a 115 factor review and then boils it down to an intuitive letter grade of A through F. Indeed, A's are the best given the long history of outperformance. Now, HF Sinclair earns that elite A rating, which is a strong buy recommendation. All in all, it ranks in the top 1% of the more than 4,600 stocks we track in our universe. Now, let's look at the underlying component grades, which helps show a stock's unique strengths and weaknesses. Gladly, this one is pretty strong across the board. We have sentiment, which is the smart money signal coming in the top 25% of all stocks tracked. Then we have a big jump up to a top 5% for three different categories, what you might call the holy trinity of the component grades, financials, growth, and value all in the top 5% of all stock. Momentum is a notch higher in the top 3% and its artificial intelligence grade that takes the cake, ranking the top 2%. Now, this grade measures how closely the stock matches the patterns our AI model ties to future outperformance. Now, the main risk with Diamondback Energy's oil refining peers is that it's a cyclical industry, but as long as they keep pounding out the earnings beats, it pays to own these shares. Now, on top of that earnings prowess, you also have a stock with strong Wall Street support and a sparkling review from the Zen Ring's quant model. Not just A-rated and not just the top 1% of all stocks, but actually the number four ranked stock out of more than 4,600 reviewed by the model. That is a darn good place to start our video today. Quick ask before we move on to the next pick. If you're getting value from this video, then hit subscribe and turn on the notification bell. That's because I publish data-driven stock analysis like this every week and the bell makes sure you get all those future videos. Now, the next company is one in a completely different industry and its recent earnings beat was even more dramatic. That said, let's keep the party moving with Centene with a symbol of CNC. They're one of the largest health insurers in the country serving roughly 24 million members with a focus on government programs like Medicaid and Medicare. Here's why Centene's interesting right now. Like HF Sinclair before Centene recently beat earnings but really beat might be too mild of a term. They more than doubled the estimate thanks to stronger Medicare margins and a favorable marketplace business and progress on Medicaid rates all landing at once. Now as if that wasn't good enough management also raised guidance for the full year ahead. Companies don't raise the bar on themselves unless the earnings momentum is real. No doubt that is the case here as we are riding four straight quarters of earnings beats. Now let's turn to Wall Street where we find 15 covering analysts who land on a consensus buy recommendation. That includes many top ranked analysts pounding the table for strong upside potential in the year ahead. Now let's take a look at things through the lens of the Zen and ratings. Once again we have an elite A-rated stock in the top 1% of all stocks after the complete 115 fundamental factor review. It's also the number one ranked stock in the A-rated healthcare plan industry. Never a bad idea to go for the best stock in a top rated industry. Now as you might expect the component grades are also extremely strong. We have value in the top 16% of all stocks tracked. This is based upon 21 different measures of value. Financial strength and its AI grade are in the top 15% of all stocks. Momentum is a notch higher in the top 11%. Then we round it out with the top 10% showings for both growth and sentiment. Now the sentiment score is our review of smart money activity like institutional money flows, Wall Street action, and insider buying. These are folks that are highly paid to get things right and so always a good idea to know where they stand on a stock. And yeah they stand pretty highly on this one. And remember, the Zen ratings are updated daily, so visit the quote pages on wallstreetzen.com for the latest ratings on this or any stock. Now, if you look at the price chart for CNC, you'll no doubt notice it's climbed quite a bit over the past year. So, is the easy money gone? Well, I don't think so, and here's why. This was CNTE's second straight quarter raising guidance, which tells you the turnaround is still building momentum. Now, layer on top the strong analyst support and the sparkling fundamental review of the Zen ratings, and there is good reason to believe shares will continue to outperform in the months and years ahead. I'm glad you stayed with me till now because I saved something special for last. A company so promising, I recently named it as my trade of the week. Just so you know, my trade of the week is my highest conviction pick. That's because it marries the proven outperformance in the Zen ratings quant model with my greater than 40 years of investing experience. It's also one of the many features of my weekly live training sessions that I mentioned earlier. Now, beyond the top picks, I also share my updated stock market outlook and trading plan to outperform. So, if you want to stay one step ahead of the market, then join me for the next live training session this coming Monday at 7:00 p.m. Eastern Time. It's a free event, but you do need to register. Just go to wallstreetzen.com/live or click the link in the description below or scan the QR code on your screen. Just pause the video for a moment to sign up. I can be patient and wait for you. Then I look forward to seeing you there on Monday. Let's get back to that third and final stock that recently earned that coveted trade of the week status. This is something you rarely see. A stock that's more than tripled over the past year, and yet the case for more upside is actually getting stronger. That brings us to CareDx with the symbol CDNA. This is a precision medicine company built around organ transplants. They make the test that tell doctors whether or a transplanted organ is being rejected. But here's the real growth driver. CareDx is pivoting into oncology using that same testing science to monitor cancer patients. And the benefit of the pivot is showing a big time in their numbers. Earnings grew more than a 34% over the past year, and it's accelerating. Even better is how much of that money is ending up on the earnings bottom line. On their most recent quarterly report, they beat estimates by over 60%. That's not a fluke as the previous quarter they beat by 150%. Something special is taking place here and it looks far from over. Here's perhaps my favorite part of the CDNA investment story. Almost no one is talking about the shares. For example, there is very limited Wall Street analyst coverage. That is a big plus in my camp because the more the company beats earnings in the future, the more strong buy recommendations they will get from Wall Street. Each one pushing shares higher to the benefit of the early movers in the shares like ourselves. That is the very nature of a hidden gem stock. Great growth story, attractive valuation, and almost nobody knows about them, which creates a very exciting investment outlook. Now, let's look at the real reason I made this my recent trade of the week. The exemplary A's and ratings profile. We have another top-notch A-rated stock, which amounts to our highest recommendation of a strong buy. Plus, CDNA is the number one ranked stock in the healthy diagnostic and research industry out of 41 quality names. Now, let's dial into those component grades. As the week I'm recording, momentum comes in the top 12% of all stocks. Growth is in the top 10%, and that is the best grade to foreshadow more earnings beats ahead. As I shared before, sentiment is our smart money signal, and that comes in the top 6% of all stocks. And the standout grade is financials in the top 4% of all stocks we track, telling you it is a very well-run operation. Don't be spooked by uh the seemingly mundane C grade for value. Our model uses a bell curve shape for ratings, and 60% of all stocks fall into the C category. As we get under the hood, it actually turns out to be in the top 34% of all stocks or value. So, no shame in that game. I am a big fan of growth stocks in healthcare. That's because they have enough earnings momentum to attract investors during the most bullish of times. But, it also has defensive qualities of a healthcare stock that investors tend to cling to during the most bearish of times. So, truly CareDx is a stock for all seasons, especially if they keep crushing it during earning season. So, there you have it. Three companies with seemingly nothing in common, except all three crushed earnings this past season and all three sit at the top of our Zen Ratings Quant Model. That's not luck. It's what a consistent Quant Model will uncover after it scans every corner of the market to find the best opportunities. In particular, is what our Zen Ratings Quant Model helps uncover. That being stocks more likely to score big during earning season given their truly stellar fundamental profiles. Not just those with A ratings overall, but especially when they grade highly for growth and financials, which are the best at foreshadowing more beats and share price gains ahead. Please make a regular habit of checking the Zen Ratings for all your stocks before they announce earnings to make sure things are in your favor. You can do that at any time for free on wallstreetsun.com. Just pull up the quote page for any stock you like to see the Zen Ratings, the component grades, and the industry ratings, right? Be sure to bookmark this site for future visits. All right. So, which of these three stocks is your favorite and why? Or is there any other company that just crushed earnings that you think I'm sleeping on? Drop it in the comments section below for the benefit of our community. Now, the next thing on your to-do list today should be to watch the video popping up on your screen now. That's where I break down the best cybersecurity stocks you might want to download into your portfolio. >> Mhm.
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