3 Stocks With Strong Buying Potential Are On The Rise

3 Stocks With Strong Buying Potential Are On The Rise

Considered to represent a wider stock market, the S&P 500 has increased by 16.5% in the past 52 weeks. In addition, the index has seen an average increase of 10.2% and 15.3% over the past five and ten years, respectively. Looking at it like this, everything seems to be fine on Wall Street. Unfortunately, that's not actually the case. According to Dalbar, a financial services market research firm, the average investor typically earns significantly less than the market. For example, in the 30-year period up to 2019, Dalbar estimated that the average equity fund investor earned only 5.04% per year, while the S&P 500 returned an average of 9.96%. Dalbar believes the main reason for this is psychological. He talks about behaviors such as panic selling and not adapting to a changing market that leads to poor investment decisions. For these reasons, an investor needs better strategies. Accordingly, TipRanks' database was used to identify the three stocks that received a "Strong Buy" consensus rating from the analyst community.

Shoe Carnival (SCVL)

Initially, there is Shoe Carnival, a valued shoe retailer that has 392 stores in 35 states and Puerto Rico, offering branded and private label products in the USA. The company also sells its products online. The management recorded a very encouraging mid-quarter business update following the reopening of their stores. Comparable store sales increased 28.1% from the quarter to date. Physical comparable sales rose 4%, while online comparable sales increased almost 470%. 4-star analyst Mitch Kummetz, writing for Pivotal Research, commented on the update: “In short, we are raising our benchmark forecast for the second quarter from 2% to 15%, reflecting SCVL's strong performance from the second quarter to date. '' The stock was down 27% year-to-date, despite recovering from March lows. Based on these, Kummetz has a Buying rating above SCVL and a price target of $ 42, which means a high potential of 55%.

Tilly's Inc. (ILys)

Next up is Tilly's, a clothing retailer that sells clothing, shoes and accessories for young men and women in the United States, as well as children. The company operates approximately 240 stores in 33 states and sells its products online. Tilly's working performance was severely restricted due to the viral epidemic. Even worse, some of the company's stores are located in California (41% of stores and around 50% of sales), which has a large number of cases of coronavirus. From the second quarter of fiscal 2020 to July 14, 2020, comparable sales were down 9.4% year-on-year to $ 101.8 million. In addition, similar store sales from physical stores fell 37.4%, while online sales increased 166%. B. Riley FBR analyst Jeff Van Sinderen rated online sales as the best of results. "The digital environment is growing with solid margins," he said. In Van Sinderen's opinion, the increase in online sales is not a one-off phenomenon caused by actual venue store closures. "We believe that TLYS's progress in the digital space is important for the future and the latest measurements are significant," said the four-star analyst. Although Tilly's shares have dropped by 45% to date, Van Sinderen expects the stock to recover. Sinderen has a $ 9 price target for TLYS and a Buy rating. This figure represents an enormous upside potential of 52%.

Aspen Group Inc (ASPU)

At the end of the list there is Aspen Group, an online education company in the USA. As of April 30, 2020, the company had 11,444 students enrolled. What is the impact of COVID-19 on ASPU? Operating performance took advantage of the online education trend. Revenue increased by 38% to $ 14.1 million in the fourth quarter ending April 30, 2020, compared to $ 10.2 million in 2019. Also, the net loss was $ 0.7 million in the quarter, compared with $ 1.6 million in the prior year. Looking at the positive earnings report and its future implications, Darren Aftahi, a 5-star analyst at Roth Capital, said: “Our model is seeing a slight improvement in terms of revenue / profit and we are optimistic about the growth potential and operating leverage of the higher LTV (lifetime value) segment ”. Moreover, on August 10, the company announced a record new student enrollment of 2,351 in the first quarter of fiscal year 2020, which ends on July 31, 2020. This reveals an increase of 32% and an annual increase of 22%, respectively. Aftahi has a Buy rating for ASPU and a price target of $ 13. The target shows a potential 31% improvement over the next 12 months.