Investors are faced with a dilemma, with both long-term and short-term signals sending different messages. Inflation remains high, above the annual average of 8%, and the Federal Reserve has made it clear that inflation is imminent. Shares are doing very well, and despite last Friday's gains, the S&P 500 and Nasdaq posted their sixth consecutive weekly losses.
But there is good, too. The 1Q22 benefit season has provided an exciting vibe, as more than three-quarters of the S&P listed companies have reported positive revenue. However, although corporate profits are currently high, the purchasing power index (PMI), the inflation rate from the manufacturing side, operates at 11%, which raises the level of inflation for consumers later in the year.
So how do you get the next hot stock you can buy at this place? Another option might be to examine the stocks approved by analysts of major investment banks in particular, such as Wall Street banking tycoon Morgan Stanley.
The company's stock analysts show their optimism by selecting the stocks they consider to be winners in the coming year - and the winners at the highest level, with an order of 60% or more. Using the Grizler website, we look at three of Morgan Stanley's choices, to see what makes them stand out.
SI-Bone, Inc. (SIBN)
We will start in the healthcare industry, through SI-Bone, a medical and equipment company. SI-bone is active in the field of sacroiliac joint pain and diagnosis, or treatment for low back problems where the spine is connected to the pelvis. Musculoskeletal diseases of the sacropelvic region have a significant impact on quality of life, the goal of SI-Bone is to develop new surgical devices and procedures to solve these problems.
The company's leading product is the iFuse installation system. This orthopedic machine is designed for surgical procedures with small holes and quick recovery times, and its triangular shape proves to produce the most effective effect on a patient's recovery. SI-Bone experienced significant stress earlier in the year, when medical delays were generally significantly increased. The total postponement of SI-Bone in January and February reached about 140 - but it was less than 20 in March, indicating business momentum.
The company's global revenue grew by 22% in Q1, reaching $ 20.4 million. This figure includes a total profit of $ 18.2 million, with a total value of 89%. This compares favorably with $ 16.8 million in revenue and $ 14.8 million in profits for the same quarter last year. EPS, however, came badly. The total loss of 37 cents per share has improved, however, in addition to the EPS loss of 47 cents per quarter of last year. SI-Bone completed Q1 with short-term liquid assets and liquid assets, including inventory, of $ 208 million.
Morgan Stanley analyst Drew Ranieri has a positive outlook for the future of SI-Bone, writing: “While 1Q was in line with expectations, the quarterly recovery trend is still promising a 2022 balance, and we are seeing a good set of good. with an annual balance if the pressures of the epidemic process continue to decrease. Overall, our thesis on the point of commercial flexibility remains the same, and we believe this should be even more significant as the recovery process continues in 2022. "
So far, Ranieri estimates that SIBN shares Overweight (i.e., Buy), and his $ 22 price means a one-year increase of 76% next year. (To view Ranieri's record, click here)
In total, there are 5 additional review reviews for this medtech company, and they all agree with Morgan Stanley’s bullish takeover - by the Strong Buy consensus rate. Shares are priced at $ 12.50, and their median price of $ 27.50 indicates an area of 120% increase in one year.
Palo Alto Networks (PANW)
The next stock under Morgan Stanley's radar is Palo Alto Networks, a leader in the security sector in the digital world. The company offers its customers protection from the attacks of malware by modern fire protection technology. The Palo Alto product line allows customers to automatically perform their online and network security functions, protect cloud operations and applications, and even home and small business networks with business distance protection.
ZoomInfo Technologies (ZI)
We will conclude with another technology company, ZoomInfo. The company offers a wide range of B2B services, through a cloud-based platform, which includes sales and marketing, testing, demand generation, account management, data management, and custom data solutions. The company forum provides advertisers and retailers with the tools they need to gain a broader perspective on their business environment, shorten sales cycles and increase winning prices.
