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Raymond James: These three stocks are expected to soar by more than 80%
More than a week has passed since the presidential election, and the market reaction shows that investors are satisfied with it. Although there is too little room for elections, the wishes of the voters have been realized: They rejected Donald Trump and his rude, expressionless style, but they also rejected the Democratic Party’s policies; The Democrats have lost their seats in the House of Representatives and are likely to lose control of the Senate. They have also lost their seats at the state level. Whether it is Donald Trump or the Democrats pushing toward the political left, American voters seem to be tired of drama. They hope that the government can move forward with the flow, and it seems they will do it. With the separation of powers between the White House and the House of Representatives, we will remember a feature of the system of checks and balances: the deadlock is the result of division among voters. There will be no change unless one party or the other obtains a majority or a majority of the minority term. Currently, neither of these exist. The direct result is a multi-day market rebound. The implication is obvious-market sentiment has calmed down since the election and investors expect the government to adopt a more normal model in the coming months. For this reason, investors will definitely find a reliable choice in the short term. Analyst Ray Ric Prentiss recently published three comments on mid-cap stocks from an article written by Raymond James, and pointed out why he believes that the stock market will have a better price in the coming year. High return potential and more stable market. All stocks fit their characteristics: they are at the low end of the median range, with a market valuation of between $2 billion and $3 billion; they live in the telecommunications ecosystem, according to Raymond James, They all have over 80% upside potential. We ran these three databases through the TipRanks database to see what other Wall Street analysts have commented on. Telephone and Data Systems (TDS) was first a telephone and data system company based in Chicago, providing a range of telecommunications services to more than 6 million customers. The company provides wired and wired broadband, wireless products and services, and TV and voice services. TDS is the fifth largest cellular operator in the United States. Although the coronavirus is still developing, TDS’s performance in 2020 has greatly exceeded expectations. Revenue was US$1.32 billion, which is comparable to the report before Corona (US$1.34 billion in the fourth quarter of 2019), while revenue jumped in the first quarter of 20 years and has remained high since. Earnings for the third quarter were 66 cents, 153% above expectations. TDS has achieved impressive results with a year-on-year growth of 266%. TDS has maintained its full-year dividend payment, which is another bright spot for investors. TDS’s earnings per common share are 17 cents, the annualized rate of return is 68 cents, and the rate of return is 3.6%, which is almost twice the average yield of S&P listed companies. TDS performed strongly throughout the year, but its disadvantages are Fiber optic and wired niche markets. However, Ric Prentiss of Raymond James saw half of the glass and pointed out: “WFH policies continue to lead municipalities and power utilities related to building overhead fiber The approval speed of TDS has slowed down. In some cases, TDS is developing in the direction of alternatives. Although TDS Telecom’s fiber optic service has an annual growth rate of 5%, depending on the market, its answering rate is better than expected, about 30 -40%. In addition, 34% of wired customers now use optical fiber, and TDS is expected to accelerate growth in the rest of 2020.” Prentiss rated TDS as a “strong buy” and increased its price target by 6% to 34 dollars. At this level, he believes that the stock’s upside potential in the next few months is 81%. (To watch Prentiss’s history, click here). According to three unanimous “buy” comments reached in recent weeks, the stock also has a “strong buy” rating unanimously expected by analysts. The stock price is US$18.73 and the average target price is US$34.83, which means that there is 85.5% upside potential for one year. (See TDS stock analysis on TipRanks) ViaSat, Inc. (VSAT) Next, ViaSat is a high-speed satellite broadband provider. This California-based company serves the commercial and defense markets based on the wide range of needs for secure communications in various industries. Social blockade measures have caused losses to the company’s business, especially the suspension of airlines. Commercial air traffic is highly dependent on satellite communications, and this slowdown is still putting pressure on ViaSat. The backlog of orders has partially offset the unfavorable factors. In the past four quarters, revenue has remained stable, between US$530 million and US$588 million, of which US$554 million in the third quarter is firmly in the middle of this range. After turning negative in the second quarter, earnings returned to the positive area. Prentiss pointed out that earnings per share in the third quarter were only 3 cents, but there was a significant continuous improvement from the previous net loss of 20 cents. When looking at the VSAT, “Government systems and commercial networks remain strong, while IFC’s business continues to develop major negative factors related to COVID-19… On the positive side, social distancing and safer home policies are driving more Residential broadband data use and increase ARPU…” Prentiss rated VSAT as outperform (ie “buy”), and his $63 price target indicated 87% upside. In general, ViaSat received a consensus “moderate buy” rating from analysts in 3 reviews, including 2 buys and 1 hold. The stock’s average price target is $53.33, which means its 12-month upside is a trading price of $33.39. (See VSAT stock analysis on TipRanks) Last but not least EchoStar Corporation (SATS) is another satellite operator EchoStar. The company controls a constellation of communications satellites, providing satellite communications capabilities for media and private companies, as well as US civilian and military government agencies. In addition, EchoStar also provides satellite broadband services to 100 countries/regions around the world. In the past three quarters, EchoStar’s revenue has remained stable at US$465 million, US$459 million and US$473 million, respectively. Although both the first quarter and the second quarter’s earnings were negative, the results of the third quarter showed a net profit of 26 cents per share. With the increase in the number of EchoStar users, the highest and lowest performance in the third quarter improved. , Totaling more than 1.54 million. Ric Prentiss has a strong balance sheet with more than $2.5 billion in cash on hand and no net debt. He is satisfied with SATS and optimistic about the near and medium-term prospects. He wrote: “SATS [has] In an era when other companies (especially satellite companies with higher leverage) are facing a large number of maturities or capital expenditure plans and cash shortages, we have strategic choices… We believe that a variety of organic and inorganic growth options are being considered, including After determining the main tenants, SBand spectrum(s) will be deployed in the future. Finally, we believe that EchoStar recently announced a partnership with Inmarsat to provide on-board connectivity, which will provide high-profit cash flow over time. We noticed that this transaction is not exclusive. These comments again give a “Strong Buy” rating and Prentiss’s $57 target price indicates that next year’s growth space is 123%. In terms of other analyst activity, it is relatively quiet. 1 buy allocated in the past three months An entry and a holding rating constitute the consensus of “medium buy” analysts. In addition, an average price target of $43.50 will give it an upside potential of around 74%. (See SATS stock analysis on TipRanks) To find For a great idea of stock trading with attractive valuations, please visit TipRanks’ Best Buys to Buy, a newly launched tool that combines all the stock insights from TipRanks. Those featured analysts. The content is for reference only. Before making any investment, it is very important to conduct your own analysis.
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