Not even analysts have the crystal ball for predicting whether a stock rise or fall in the future, but it is true that their vision of the company is an informed opinion.
Here are the companies that analysts are most optimistic about:
- Micron Technology Inc
The American technology company has benefited from the high demand experienced as a result of the covid-19 crisis. Despite its great fundamentals, the company is flat in terms of returns so far this year.
- Uber Technologies
This company, founded in 2009 and publicly traded 10 years later, has been in the crosshairs of the respective regulators in each country. This uncertainty regarding the regulatory viability of the business has meant that during all this time the stock has only risen 10%, and with high volatility.
Despite this, the company has very interesting sales growth figures.
- Take-Two Interactive
The well-known video game company, which own very famous franchises, such as Grand Theft Auto or 2k sports video games, disappointed investors at an industry event (E3) last month. Like Micron, it is a company with great competitive advantages and very high profitability figures, with a very healthy balance sheet.
The company has -15% this 2021, so it is presented as an interesting entry point.
- Delta Airlines & Southwest Airlines
Perhaps surprisingly, analysts see them favorably. In addition, recent declines in the sector have caused the analysts' target price to move further away from the current price, having a greater revaluation potential.
How many companies should I have in my portfolio?
Although these companies may seem like good bets to win that alpha to the market,we must remember that diversification is an important element.
In any case, we must also bear in mind that the more companies we add to our portfolio, the more it will resemble the index and, on average, the less alpha we will get.