By Harriet Lefton
Buckle up — the market is looking jittery right now. If it’s not the threat of further Federal interest rate hikes, it’s the possibility of a full-blown trade war with China and Europe. As James Brumley notes, however, if geopolitical risks were actually a deterrent to investing “nobody would ever put (or keep) a penny in stocks”.
For investors prepared to put in the work, there are plenty of gems to be found. I set out to pinpoint the best two stocks to buy right now using the best analysts on Wall Street as guidance. TipRanks tracks and measures the performance of over 4,700 analysts enabling investors to identify consistently outperforming experts.
Analysts are ranked based on two crucial factors: success rate and average return per recommendation. Following top analysts is an easy way to identify stocks that experts believe have strong investing potential. That’s why I’m only including companies with a ‘Strong Buy’ top analyst consensus based on the past three months of ratings.
Using this consensus, investors can be reassured that these stocks are the crème de la crème as far as the Street is concerned.
Alibaba Stock Remains a Long-Term Buy
Chinese e-commerce giant Alibaba has a “moderate buy” analyst consensus rating with big upside potential of 15.3%. The Street is unanimous in its take on BABA as one of the best stocks to invest in right now. I say that because in the last ten months this stock has received no hold or sell ratings from the Street. Just 100% buy ratings.
This week, top Oppenheimer analyst Jason Helfstein reiterated his “buy” rating and $220 price target. He doesn’t mince his words when he says: “Our positive thesis is based on the company’s unrivaled dominant position in its core business, its pioneer ecosystem that creates a long-standing barrier to entry, and numerous drivers including enhancing monetization and stable GMV (gross merchandise volume) growth outlook.”
Key growth drivers to keep a close watch on include rural/cross-border/cloud/logistics. For example AliCloud (Alibaba’s answer to Amazon Web Services) revenue is soaring with triple-digit y/y growth.
Is Facebook Stock Cheap Right Now?
Social media giant Facebook is one of the best stocks to invest in right now. Shares are cheap at $159.55. And now we have a clear buying opportunity on our hands according to two top analysts.
Five-star MKM Partners analyst Rob Sanderson says FB’s current valuation is “highly attractive.” Shares have pulled back as investors “debate the impact of an expected decline in engagement, revenue growth deceleration and an elevated spending outlook.” With another strong quarter of robust top-line growth in the bank, Sanderson sees prices spiking 34% to $240.
Meanwhile, top-100 analyst KeyBanc analyst Andy Hargreaves adds “We believe this provides an opportunity to purchase above-average growth at Facebook for a price that is well below average.” He believes investors are heavily discounting FB’s growth prospects and extraordinary core momentum. His $245 price target suggests even greater upside potential of 37%.
Over the last three months, this “Strong Buy” stock has scored 32 buy ratings, one hold ratings and one sell rating.
Disclaimer: The author has no position or business relationship in any stock or company mentioned in this article. The author is not receiving compensation for this article. This article is intended for informational and entertainment use only, and should not be construed as professional investment advice.