Wall Street's 7 Highest-Rated Stocks to Buy
Analysts agree these stocks are good bets. A “buy” rating for a stock from a Wall Street analyst can be an important vote of confidence for an investor choosing which stocks to add to a portfolio. However, as many investors found out during the market downturn in 2008, analysts are far from perfect. Rather than relying on stock picks by one person, getting a consensus opinion among multiple analysts can be a better approach to find the best stocks to buy. We looked for stocks with “buy” ratings from Bank of America, “buy” or “strong buy” ratings from CFRA and five-star ratings from Morningstar. Here are the seven stocks we found. Wall Street's highest-rated stocks to buy:
Baidu (ticker: BIDU)
BioMarin Pharmaceutical (BMRN)
China Unicom (CHU)
Enterprise Products Partners (EPD)
ING Group (ING)
Philip Morris International (PM)
Uber Technologies (UBER)
Baidu (ticker: BIDU)Baidu shares are down 37% in the past year on fears that the U.S. trade war with China will continue to hurt the Chinese economy. However, Bank of America analyst Eddie Leung says the internet search giant has been leveraging better targeting to improve mobile traffic and engagement. Baidu mobile app search queries were up 25% last quarter, and time spent on in-app feeds and videos was up 35%. Leung says the sell-off is a long-term buying opportunity for investors. Bank of America has a “buy” rating and $183 price target for BIDU stock.
BioMarin Pharmaceutical (BMRN)BioMarin Pharmaceutical is a biotech company developing treatments for serious rare diseases with a focus on enzyme replacement. Morningstar analyst Karen Andersen says BioMarin’s seven approved drugs on the market today are growing as expected, and the company has 10 years of market exclusivity on the group. Given the company targets rare, chronic conditions, patients can be difficult to acquire, but are typically easy to retain. Anderson says approval of hemophilia gene therapy valrox and achondroplasia drug vosoritide could come by the end of 2020. Morningstar has a “buy” rating and $119 fair value estimate for BMRN stock.
China Unicom (CHU)China Unicom is the second-largest mobile and fixed-line telecom operator in China. CFRA analyst Ahmad Halim says China Unicom’s subscriber and revenue growth has stalled in the past two quarters, and pricing pressures have weighed on average revenue per user. Fortunately, industrial internet growth has helped offset that weakness. 5G network investments will also likely limit the company’s return on invested capital. But Halim says China Unicom shares still have upside from current levels even if they remain at a discount to their historical valuation. CFRA has a “buy” rating and $11 price target for CHU stock.
Enterprise Products Partners (EPD)Enterprise Products Partners is the largest public master limited partnership, specializing in midstream energy services. Bank of America analyst Ujjwal Pradhan says Enterprise’s organic growth outlook is impressive, and its $9.1 billion project backlog should create revenue tailwinds. In the near term, about $3 billion of those projects are expected to go online within the next six months. Pradhan says Enterprise’s largest customers, such as Chevron Corp. (CVX), are not cutting their budgets. Like many other MLPs, Enterprise pays a sizable 6.7% yield. Bank of America has a “buy” rating and $36 price target for EPD stock.
ING Group (ING)ING is a Dutch bank and financial services company. Morningstar analyst Niklas Kammer says ING’s 6.5% dividend yield is certainly attractive, and its 38% payout ratio suggests the company has the financial flexibility to maintain its current yield. Net interest income growth has been difficult in the low-rate environment, but Kammer says lower loan-loss provisions, cost reductions, lending growth and focus on fee revenue have helped ING weather the difficult environment. ING’s geographical diversification also helps limit risk, Kammer says. Morningstar has a “buy” rating and $16.60 fair value estimate for ING stock.
Philip Morris International (PM)Philip Morris is the owner of brands such as Marlboro, Parliament and L&M and holds 28% share of the international cigarette market. CFRA analyst Garrett Nelson says pricing gains and expansion in emerging markets should help Philip Morris offset declining volumes in developed countries. The company’s iQOS heated tobacco product will also help it replace lost cigarette sales and could get a boost from recent health concerns related to vaping devices, Nelson says. Philip Morris pays an appealing 5.5% dividend. CFRA has a “buy” rating and $90 price target for PM stock.
Uber Technologies (UBER)Ridesharing giant Uber has been one of the biggest IPO flops of 2019, down 40% from its May IPO price. In recent weeks, Uber shares made new lows due to lockup expiration-related selling and headlines that New Jersey is ordering the company to pay $650 million in back taxes. Despite the headwinds, Bank of America analyst Justin Post says Uber is now trading at a valuation discount to peers Lyft (LYFT) and GrubHub (GRUB) and has limited additional downside risk from current levels. Bank of America has a “buy” rating and $44 price target for UBER stock.
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