The markets have seen a rollercoaster ride in the last two weeks, that's for sure. The sudden bankruptcy and failure of Silicon Valley Bank, and the federal closure of Signature and Silvergate banks, have raised concerns about old-fashioned bank running. An announcement by Credit Suisse that it was having difficulty accessing capital raised fears that even major banking names would not be immune to the contagion.
President Biden and Treasury Secretary Yellen have made it clear that SVB and Signature account holders will be “made whole,” but uncertainty remains around other regional banks. And no one knows how the Federal Reserve will respond via interest rate policy at next week's FOMC meeting.
It's a confusing situation, tailor-made for an intuitive data-parsing tool. SmartScore on TipRanks is just that – an AI-powered data gathering and matching tool that collects and sorts the flood of statistical information generated by over 8,500 publicly traded stocks. The tool then presents that data on an easy-to-use scale of 1 to 10, giving each stock a score based on a distillation of 8 different factors, each of which has been proven to match equity outperformance. It happens. A high SMART score can't guarantee that a stock will beat the market's index — but it gives investors a strong clue toward positive performance, and ‘Perfect 10' stocks are always worth a closer look. .
So let's get this ball rolling. Using the smart score platform, we've pinpointed two stocks that have earned a “Perfect 10” SMART Score. Each also has a strong buy rating from the analyst consensus and double-digit upside potential for the year ahead. It is not just an overall score, it is a perfect combination of bullish indicators.
Array Technologies (arri,
We'll be starting out in the solar power industry with Array Technologies. This company specializes in solar tracker technology, the combination of hardware and software needed to keep utility-grade photovoltaic panel arrays precisely aligned with the sun for maximum efficiency. Array's flagship product, the DuraTrack system, is used extensively in solar power projects, the type connected to public power generation utilities, and is considered a pioneering system in the solar tracker field.
Leading companies in rapidly expanding sectors often run net losses — and as recently as 2H21, Array was not a net-profitable company. However, starting in 3Q22, the company took a turn and achieved both record revenue and profitability. In Q3, Array posted a company-record top line of $515 million, up from $188.7 million in the prior-year period, and net income attributable to common shareholders of $28.6 million, compared to a 3Q21 loss of $33. The company's EPS, at 19 cents per diluted share, beat 11-cent forecasts by a 72% margin and was a dramatic turnaround from the 7-percent EPS loss it reported a year earlier.
Array will report its Q4 and full year 2022 results on March 21. Meanwhile, the company has issued preliminary financial results and guidance. Arrays is guiding to $1.62 billion to $1.64 billion in total revenue for 2022; Achieving this would represent 73% year-over-year revenue growth to the reported $941 million in 2021. The company had an order book of $1.9 billion as of December 31, 2022.
Looking ahead, Array is forecasting 2023 total revenue of between $1.8 billion and $1.95 billion, with full-year adjusted EPS of 75 cents to 85 cents.
Scotiabank analyst Tristan Richardson covers the stock, and he's clearly bullish based on the company's recent trendline.
“Array is a direct play on global secular growth trends in utility-scale solar capacity with its ground-mount Tracker product. Near-term uncertainty remains over project timing related to the availability of modules for developers, but in the longer term “We look for 15%-20% solar capacity growth, which provides Array with a strong secular background as well as growth potential in the market for tracker solutions generally,” Richardson said.
To that end, Richardson rates the ARRY stock an OUTCOME (i.e. BUY), and his price target of $26 indicates 52% upside potential in the coming months. (To see Richardson's track record, Click here,
Bulls are definitely racing for ARRY, as the stock has 12 recent analyst reviews, with a 10 to 2 breakdown in favor of a buy — for a Strong Buy consensus rating. Shares are priced at $17.07 and the average price target is $26.73, meaning an upside of ~57% by the end of this year. ,View ARRY stock analysis on TipRanks,
Argenx SE ,argx,
The second ‘Perfect 10' stock we'll look at is Argenx, a biopharma firm in the immunology space working on new treatments for rare diseases. The company has an extensive pipeline of approximately 20 different research tracks investigating the use and efficacy of 3 different drug candidates.
The lead candidate, efgartizimod, has received approval in the US, Europe and Japan for the treatment of the rare neuromuscular disease GMG, and the company was focusing launch activities in 2022 for the drug, branded as Vivgart .
Argenx provided an update on the ViaVgart launch in its 2022 annual report. Worldwide, the company notes that there are some 3,000 gMG patients on Vyvagart, and the drug generated full-year net product revenue of $400.7 million. In addition, the company is pursuing regulatory processes in several countries, including China, the UK, Canada and Italy, seeking additional approvals and preparing for commercial launch.
For label expansion purposes, Argenx is also putting efgartigimod through additional clinical trials. These trials are in various stages, with the ADAPT-SC trial being the most advanced. This completed trial was for a neurological application, GMG in adult patients of the drug, and based on positive topline data the company received FDA approval of the biologics license application with a PDUFA date of June 20, 2023.
The Company's ADHERE trial, a registrational clinical trial in the treatment of chronic inflammatory demyelinating polyneuropathy (CIDP) is on track to release topline data in 2Q23, and the registrational Phase 2/3 ALKIVIA trial, a study of efgartizimod in the treatment of three subtypes of idiopathic doing. Inflammatory myopathy, ongoing. Argenx also has a registration clinical trial for the treatment of thyroid eye disease (TED) planned to begin in 4Q23.
While we've outlined the tip of the iceberg on Argenx's extensive pipeline, these programs are at the heart of Baird analyst Joel Beatty's assessment of the stock. BT writes: “We now see this as a good entry point into the stock ahead of what we anticipate will be successful registration trial results for CIDP in 2Q23 (which will reintroduce a strong acquisition premium to the stock). In addition, we expect efgartizimod sales for GMG to continue to grow at a healthy rate, boosted by the approval of the SQ formulation in June.
In his view, shares of ARGX deserve an Outperform (i.e. Buy) rating, and his $460 price target suggests the stock has room for 28% upside in the year ahead. (To see Beatty's track record, Click here,
The Strong Buy consensus rating here suggests bulls are out, as evidenced by a 15 to 1 breakdown of 16 recent stock reviews favoring buys over holds. ,View ARGX stock analysis on TipRanks,
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disclaimer: The views expressed in this article are those of select analysts only. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.