3 Stocks Analysts Just Upgraded — Why Wall Street Says 'Strong Buy!'

Today we are taking a look at three very different stocks that all have one thing in common. They've each received an analyst upgrade just this week. So, let's get into it. All right, guys. Welcome back. Thank you all so much for being here. It is Julie with Tip Ranks and today we're taking a look at three companies, all with recent analyst upgrades, giving them a strong buy consensus and some pretty notable upside potential. We're going to take a look at these companies, what it is that they do, and what those analysts are predicting for the stock's future. You can stay on top of the latest analyst ratings over on the Tip Ranks website with our daily analyst ratings. And you can check it out on the mobile app as well. And if you enjoyed today's video, make sure you hit that thumbs up button and that you're subscribed to the channel. Now, let's dive right into our three stocks. We're going to start things off with Devon Energy. They trade under the ticker DVN, currently priced at $45.61. The stock has gained 45% in this past year. In the last 3 months, it's up over 7%. Devon Energy is one of the largest independent oil and natural gas producers in the United States. They operate across several of America's most prolific oil basins, including the Delaware Basin, the Eagle Ford, the Anarco Basin, and the Backan in North Dakota. Devon's business is straightforward. They drill wells, produce oil and gas, and return capital to shareholders through dividends and buybacks. They've built a reputation for operational efficiency and shareholder friendly capital allocation. They just shared their latest quarterly earnings report on May 5th. And while the headlines did show an earnings miss, the operational story underneath is strong. Earnings per share came in 2 cents below analyst expectations. And revenue of 3.8 8 billion were down sharply from the year earlier, primarily due to a non-cash commodity derivative valuation loss of approximately 0.7 billion. Their core earnings came in at 641 million and oil production came in at the high end of their guidance at 387,000 barrels per day with capital spending coming in 6% below plan. The big news is that shareholders voted overwhelmingly to approve their merger with Cotera Energy on May 4th with a combined entity targeting $1 billion in annual synergies. On top of that, they also announced that the company's dividend will increase by over 30% per share starting in Q2 subject to board approval. Their current quarterly dividend is 24 cents per share for a dividend yield of 2.64%. On May 5th, Raymond James upgraded their rating on the stock to a strong buy and yesterday added it to their analyst current favorite list. A list on which an analyst may only have one buy idea on at any given time. The analyst noted with the Cotera Energy merger closing, Devon has multiple options to close its valuation gap to peers. Raymond James is confident the company will be successful in portfolio optimization and that Devon is playing from a position of strength with plenty of levers at their disposal. Devon Energy comes in as a strong buy with 18 current analyst ratings breaking down to 16 buys and two holds. The average price target of $59 implies an upside potential of 31.5%. Looking at those ratings down below, on the low end, we do have a hold rating with an upside of 1%, while our high-end rating does come from that Raymond James Analyst with an upside of 58%. Second on the list today is Tactile Systems Technologies. They trade under the ticker TCMD, currently priced above $26 per share. Their stock has seen big growth this past year, gaining 160% but has cooled off recently and is down over 7% in the last 3 months. They are behind the company Tactile Medical. They are a medtech company that makes at-ome therapy devices for people with chronic conditions. Their two core products treat lympadeema, a condition where fluid builds up and causes painful swelling, usually in the arms or legs, and airway clearance for people with chronic respiratory diseases. These are wearable pneumatic compression devices that patients use at home rather than in a clinical setting. They also reported earnings this week on May 3rd, coming out with both an earnings and revenue beat. Their loss per share of 8 cents was 4 cents better than analysts were anticipating and total revenue came in at 75.3 million, up 23% year-over-year. Their gross margin improved 250 basis points to 76 a.5% and adjusted EIDA turned positive at 3.7 million. Management also raised fullear revenue guidance to 9 to 12% growth. Several Wall Street analysts have increased their price target on the stock following that report and just today an analyst at B Riley upgraded their rating to a buy. They noted the company reported a top and bottomline beat for Q1 and the firm is increasingly confident in Tactile's growth and operating leverage trajectory and views the most recent pullback as an attractive entry point. The Tactile stock has five current analyst ratings, all giving it a buy. The average price target is $39.50, implying an upside potential of 48.5%. Looking at those price targets down below, they range from an upside of 35% to 58%. And last but not least, we're taking a look at Grab. They trade under the ticker GRAB, currently priced at $3.81. They are in the red this past year, down 23.5% and have fallen 11.5% in the last 3 months. It does seem that hedge funds have been buying the dip on this though as in the past quarter they've increased their holdings by 11.2 million shares. Grab is Southeast Asia's dominant super app. If you live in Singapore, Malaysia, Indonesia Thailand Vietnam the Philippines, Cambodia, etc. Grab is how you get around, how you order your food, and increasingly how you access financial services like loans and insurance. Think of it as Uber, Door Dash, and a digital bank all running inside one app serving one of the fastest growing consumer markets in the world. They also just dropped their earning support this week on May 5th. And the results were impressive, especially considering Q1 is typically their softest quarter due to holidays. Earnings per share came in at 3 cents, which was 1 cent ahead of expectations, while revenue grew 24% year-over-year to $955 million. Adjusted EBIDA grew 46% year-over-year to $154 million. And this marked the company's 17th consecutive quarter of adjusted EBIDA growth. That is four plus years of uninterrupted EBIDA improvement quarter after quarter. Now, we did see several analysts slightly lowering their price targets on the grad stock, but still maintaining buy ratings. And just yesterday, an analyst at China Renaissance upgraded their hold rating to a buy, bringing us to a total of 14 current analyst ratings with a unanimous strong buy consensus. Even with those lowered price targets, the average still comes in at $612, implying an upside potential of over 60%. Looking at the price targets down below, they range from an upside of 31% all the way up to 110%. So, that is a quick look at three strong buy stocks, all with recent analyst upgrades. Let me know your thoughts on these companies and which one you'd put on your watch list. I always love hearing from you guys. And of course, keep in mind these videos are never a suggestion to buy or sell any specific stock. So, make sure you're always doing your own research and due diligence. Thanks so much for watching. Have a wonderful day and I'll see you back here next time.