Unhappy with the state of the portfolio after the miserable stock market action of 2022? You are probably far from alone. Most investors struggled to make progress in this year’s bear market, which provided only short periods of respite.
That said, as the year-end approaches, Jim Cramer, the well-known host of CNBC’s “Mad Money,” thinks the bears are showing signs of exhaustion, which is a good sign. news for battered investors.
“You have to adjust your mindset to a world where the bears are finally retreating, because I bet the next four weeks will be much better than what we’re used to,” Cramer said.
With that in mind, let’s take a closer look at two stocks that recently received Cramer’s endorsement in his “flash ride” segment. According TipRanks database, Cramer isn’t the only one who thinks these tickers are ripe for the picking; both are ranked as Strong Buys by analyst consensus. Here are the details.
PM materials (deputy)
The first name we’re going to look at is a “winner,” according to Cramer. MP Materials is a North American-based rare earth materials miner. Its deposit-rich Mountain Pass Mine in California is the largest rare earth mine and processing facility in the United States and provides the company with an approximately 15% global market share in upstream rare earth manufacturing.
Its production is primarily focused on neodymium-praseodymium (NdPr), a rare earth element used in high-strength permanent magnets that drive traction motors used in electric vehicles, drones, wind turbines, robotics and other other advanced motion technologies.
Being able to produce much-needed components used in adopting segments should be a recipe for success, and the company relied on the rise in the realized price of rare earth oxide in its latest earnings report. – for the third trimester.
Despite COVID-19 lockdowns in China and headwinds from the global economy, which led to a sequential decline in NdPr prices, average prices rose significantly year-over-year, underscoring demand always robust from NdPr.
Revenue rose 24.8% year-over-year to $124.45 million, beating street call by $6.73 million. The increase in revenue led to a 34% year-over-year increase in adjusted EBITDA to $91.4 million. Accordingly, Adj. EPS of $0.36 also topped the Street forecast of $0.30.
So Cramer thinks MP is a “winner”, as does the BMO analyst Robin Fiedler.
“MP is a rare earth pureplay with a Tier 1 asset among rare alternatives. We view MP’s unique and multi-faceted vertical integration growth and Chinese supply chain bypass strategy as compelling and therefore able to withstand near-term price and expansion risk,” the analyst said. “We believe that at current levels, the risk-reward ratio is attractive given our assessment of medium-term vertical integration. and long term and the potential for various legislative ‘victories’ next year.”
As a result, Fiedler assesses that MP shares outperformance (i.e. buy) while its $50 price target leaves room for 53% 12-month gains. (To see Fiedler’s track record, Click here)
Fiedler’s view on MP is bullish – and he’s far from the only bull on the stock. MP has 7 recent analyst ratings, with 6 Buys and 1 Hold for a Strong Buy consensus rating. The shares are priced at $32.68 and their average price target of $44.93 implies upside potential of around 37% year over year. (See MP Materials stock forecast on TipRanks)
SA ICON (ICLR)
“I like it. It’s a very cheap stock. It’s Cramer’s short and succinct explanation for backing the next company we’ll be looking at.
Icon is a big name in the world of clinical research organizations (CROs). In other words, the company helps pharmaceutical, biotechnology and other research laboratories to do their work. It is one of the biggest names in the industry offering services at all levels. These include everything from strategic development, program analysis and compound selection assistance to patient recruitment and retention, site monitoring and data management, among others.
Icon has seen some big changes over the past year and a half. In July 2021, the company completed its acquisition of contract research firm PRA Health Sciences in a deal worth approximately $12 billion, creating what it bills as “the organization world’s most advanced clinical research and healthcare intelligence facility.
Financially, Icon’s latest statement was a success. In the third quarter report, the company generated revenue of $1.94 billion, or $10 million above Street’s expectations. Similarly, EPS of $1.94 beat analysts’ forecast of $1.82. The company also reaffirmed its revenue for the year 2022 and adj. EPS guidance.
Assessing Q3 print, JP Morgan analyst Casey Woodring thinks the long-term thesis remains “intact” while emphasizing the importance of the FRAH agreement.
“We are encouraged by the way the business has executed in 2022 and view the reiteration of LT targets through 2025 as a positive indicator of the overall health of the market and ICLR’s competitive positioning,” the company wrote. analyst. “We continue to view ICLR as a leading clinical CRO with a compelling financial profile that is being leveraged more by big pharma in this time of low biotech uncertainty, as well as the potential for new business growth due to the company-wide and integrated capabilities of the PRAH agreement.
These comments underpin Woodring’s overweight (i.e. buy) rating, which is supported by a price target of $265. The implication for investors? Up approximately 22% from current levels. (To see Woodring’s track record, Click here)
Overall, ICON has strong street support; the ratings split 7 to 2 in favor of buys rather than holds and result in a consensus rating of strong buy. The average target is slightly below Woodring’s target; at $259, the figure suggests a year-over-year upside potential of around 20%. (See ICLR stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the analysts featured. The Content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.