The stock market has been on a relentless rise and has been making new, all-time highs. Earlier in the year, tech stocks were leading us higher but now attention has focused on the vaccine. It will likely result in massive pent-up demand for people to travel and visit each other.
Since December 9, the stock market advance has paused. Some believe it could be a buying opportunity given that we are entering a bullish seasonal period.
The POWR Ratings can help you find the best stocks to buy whether it's for a trade or investment. Let’s take a look at some of the more intriguing POWR Rating upgrades: United Parcel Service (UPS), Canadian National Railway (CNI), Avantor (AVTR), Genuine Parts Company (GPC), and Dropbox (DBX).
United Parcel Service (UPS)
Now that traditional in-person shopping at brick-and-mortar retailers and in-person meetings have come to a grinding halt, the likes of UPS are enjoying an uptick in business. Though there is the potential for this trend to reverse as society reopens, the bottom line is that many more people and businesses have grown accustomed to having items sent through UPS on their behalf rather than investing the time and effort necessary to buy or transmit items on their own. This means UPS should enjoy a lasting spike in business long after the pandemic ends.
The POWR Ratings show UPS has an "A" grade in the Buy & Hold Grade, Trade Grade, and Industry Rank components. The stock is ranked first of nine in the Air Freight & Shipping Services segment. The analysts have set an average price target of $180.36 for UPS, indicating it is likely to pop by more than 8%. Making matters even better for UPS investors is the company’s 2.40% dividend.
UPS should continue to ascend to new heights as the company pivots toward profiting from deliveries instead of primarily attempting to rake in the cash through transmitting items at high volumes.
Canadian National Railway (CNI)
This North American rail company transports goods in all directions across the continent. CNI connects customers to NAFTA nations through ports at the Gulf, Pacific, and Atlantic.
CNI has "A" grades in the Buy & Hold Grade and Trade Grade POWR Rating components. CNI is ranked second of 14 stocks in the Railroads segment. The company has a year-to-date price return of 23.30% along with a three-year price return of 43.78%.
The top analysts are favorable to CNI, setting an average price target of $115.81. If CNI reaches this level, it will have increased by more than 6%. CNI has hiked its dividend for 25 consecutive years.
The bottom line is CNI's rail business is an essential industry. The company’s rail network is the largest on the continent. Add in the fact that CNI brass is investing millions in enhancing automation and investors have all the more reason to be bullish.
AVTR provides important products and services to companies in the healthcare, biopharma, and education spaces. AVTR’s clients also include governments to boot.
The POWR Ratings reveal AVTR has "A" grades in the Trade Grade and Peer Grade components. The stock is ranked third of 34 in the Consumer Goods space. AVTR has a year-to-date price return of 47.66%. The stock has a three-month price return of 23.16%.
Check out the top analysts’ take on AVTR and you will be impressed: 9 of 9 rate the stock as a “Buy”, setting an average price target of $27.86, indicating there is at least 4% upside.
Genuine Parts Company (GPC)
This service organization distributes replacement parts for automobiles and industrial machines. The company also transmits electronics and office products to boot. The POWR Ratings reveal GPC has "A" grades in the Buy & Hold Grade and Trade Grade components. The stock is ranked 4th of 54 in the Auto Parts segment. GPC had a '19 price return of 14% along with a three-year price return of 14.45%.
The top analysts have set an average price target of $103 for the stock, indicating there is more than 7% upside. GPC has grown revenue for five straight years. The stock has a dividend of 3.26%.
GPC is gradually making its way back to its pre-virus price level of $105. Now that the pandemic is ending and more people will be driving, GPC will benefit from the hike in demand for its replacement parts.
The use of digital platforms to share and store files is becoming that much more popular with each passing day. This is DBX’s business. The company has benefitted from the pandemic pushing people to the cloud for work and play.
The POWR Ratings reveal DBX has an "A" grade in the Buy & Hold Grade and Trade Grade components. The stock is ranked first of 55 in the Technology - Services space. DBX has a year-to-date price return of 30.21% along with a three-month price return of 14.59%.
The analysts are bullish on this tech stock, setting an average price target of $28.50, meaning there is more than 22% upside to go. Though cloud storage is all the rage, DBX is trading a mere $2 above its IPO price. However, DBX is in the midst of growth, with revenues escalating 14% on a year-over-year basis.
The hike in DBX's paying users, revenue per paying user, and gross margins bode well for the company. Furthermore, DBX's margins are expanding, setting the stage for a profitable future. Get in on DBX at this affordable price and don't look back.
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UPS shares were trading at $167.00 per share on Tuesday morning, up $0.38 (+0.23%). Year-to-date, UPS has gained 47.41%, versus a 15.54% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.5 Upgraded Stocks With Promising Prospects in 2021 appeared first on StockNews.com