All 45 sell-side analysts who cover Amazon.com rate a batch a “buy.” That is incredible, deliberation a shares trade for about 71 times a brazen accord gain estimate, some-more than 4 times that of a benchmark SP 500 Index.
How high are a brazen price-to-earnings (P/E) ratios for other rarely rated stocks? How unsure competence it be to follow a investing flock and burst in?
Tomi Kilgore wrote about a risks compared with such clever view for Amazon
AMZN, -1.14%
as good as opportunities for short-term traders wishing to “play” a internet sell giant’s first-quarter gain news Thursday after a batch marketplace closes.
Among a SP 500
SPX, -0.22%
a “perfect” list of sell-side ratings is a rarity. Only one association besides Amazon is rated “buy” or a homogeneous by all analysts polled by FactSet: Marathon Petroleum
MPC, -2.55%
has tip ratings among all 19 analysts covering a company. Its shares trade during a brazen P/E ratio of usually 10.7. Marathon was recently enclosed in this list from Barron’s: “10 bonds with safe, inexhaustible dividends.”
Reluctant to contend ‘sell’
There is a reason since it is critical to heed sell-side analysts (most of whom work for brokers who wish their business to buy shares) and buy-side analysts, who work for income managers. The sell-side tends to be splendid and sunny: Only dual companies among a SP 500 have infancy “sell” or homogeneous ratings:
• Campbell Soup
CPB, +0.26%
Nine of 16 analysts rate a batch a “sell” or a equivalent. The shares trade during a brazen P/E ratio of 15.8. Interestingly, a shares are adult 20% this year (including reinvested dividends), following a 29% dump in 2018. As partial of a bid to facilitate a business, Campbell announced a understanding to sell a Bolthouse Farms section to Butterfly Equity for $510 million. Here’s a demeanour during Campbell’s turnaround try and a formula so far.
• Franklin Resources
BEN, +0.62%
The holding association of Franklin Templeton Investments is rated a “sell” or a homogeneous by 8 of 15 analysts polled by FactSet. The shares trade for 13.7 times a accord brazen gain estimate. This is another liberation story so distant in 2019, with a shares returning 20.5% after shifting 23% in 2018.
Looking for ‘perfect’ sets of ratings
If we enhance a list to a SP 1500 Composite Index, that includes a SP 500, a Small-Cap 600 Index
SML, +0.23%
and a SP 400 Mid-Cap Index
MID, +0.35%
there are 93 companies that all analysts cruise a buy. That is a extensive number. However, many are lonesome by a tiny series of analysts.
So here are a 39 bonds among a SP 1500 that are lonesome by during slightest 5 analysts, with all rating a shares “buy” or a equivalent. The list is sorted by descending brazen price-to-earnings ratio.
Company Ticker Forward P/E ratio Number of analysts Closing cost – Apr 23 Consensus cost target Implied 12-month upside potential Ligand Pharmaceuticals Inc.
LGND, -3.53%
4.0 6 $128.38 $212.40 65% Mercer International Inc.
MERC, +0.21%
6.4 6 $14.10 $22.50 60% SLM Corp
SLM, +1.51%
7.7 12 $9.93 $13.79 39% Ameris Bancorp
ABCB, +0.37%
8.3 6 $35.26 $47.21 34% Enova International Inc.
ENVA, -0.39%
8.3 5 $25.83 $34.20 32% Conn’s Inc.
CONN, +4.68%
8.9 6 $24.76 $36.50 47% SYNNEX Corp.
SNX, -0.01%
9.0 8 $107.65 $127.14 18% Veritex Holdings Inc.
VBTX, +0.04%
10.4 6 $25.94 $32.33 25% Redwood Trust Inc.
RWT, -0.18%
10.4 6 $16.40 $17.92 9% Marathon Petroleum Corp.
MPC, -2.55%
10.7 19 $61.06 $88.59 45% Rayonier Advanced Materials Inc.
RYAM, -2.07%
11.9 6 $15.49 $20.50 32% G-III Apparel Group, Ltd.
GIII, +0.45%
12.9 9 $42.53 $48.89 15% Lumentum Holdings Inc.
LITE, -0.45%
13.7 17 $62.09 $69.19 11% Ultra Clean Holdings Inc.
UCTT, +1.57%
14.0 5 $12.13 $15.40 27% Ichor Holdings, Ltd.
ICHR, +1.81%
14.4 6 $24.87 $25.83 4% Helen of Troy Limited
HELE, +0.81%
14.7 5 $116.60 $142.60 22% LCI Industries
LCII, +0.08%
15.5 7 $91.67 $93.17 2% First BanCorp (Puerto Rico)
FBP, -3.63%
15.7 6 $11.56 $12.92 12% Archrock Inc.
AROC, -1.01%
16.0 5 $10.86 $14.25 31% Harsco Corp.
HSC, -0.79%
16.3 5 $22.75 $31.50 38% Perficient Inc.
PRFT, +0.38%
16.8 6 $28.75 $33.50 17% Dave Buster’s Entertainment Inc.
PLAY, +3.96%
17.5 11 $54.02 $63.10 17% Brink’s Co.
BCO, +5.54%
17.8 6 $81.07 $98.20 21% QuinStreet Inc.
QNST, -0.65%
20.1 6 $13.86 $19.85 43% Virtusa Corp.
VRTU, -1.80%
20.5 8 $54.39 $63.71 17% Addus HomeCare Corp.
ADUS, +2.66%
29.0 7 $65.02 $77.86 20% Apergy Corp.
APY, -2.93%
29.0 12 $43.00 $46.70 9% Cubic Corp.
CUB, +0.80%
29.0 7 $56.17 $77.17 37% Helix Energy Solutions Group Inc.
HLX, -2.33%
29.8 8 $8.58 $10.58 23% BioTelemetry Inc.
BEAT, +0.27%
30.5 6 $58.57 $83.83 43% Monolithic Power Systems Inc.
MPWR, +1.83%
38.2 10 $154.70 $151.00 -2% Digi International Inc.
DGII, -0.08%
44.9 7 $13.04 $17.29 33% InterDigital Inc.
IDCC, -0.92%
60.3 5 $66.56 $95.40 43% Amazon.com Inc.
AMZN, -1.14%
70.7 45 $1,923.77 $2,128.32 11% DSP Group Inc.
DSPG, +0.27%
71.7 5 $14.76 $15.40 4% NeoGenomics Inc.
NEO, -0.94%
84.4 9 $20.17 $22.50 12% LivePerson Inc.
LPSN, +0.07%
N/A 12 $28.79 $33.42 16% Progenics Pharmaceuticals Inc.
PGNX, -2.76%
N/A 6 $5.07 $10.08 99% Green Plains Inc.
GPRE, -0.64%
N/A 5 $17.21 $20.20 17% Source; FactSet
You can click on a tickers for some-more on any company, including business profiles and batch performance.
There are no brazen P/E ratios for a final 3 companies on this list since analysts design their total gain for a subsequent 12 reported months to be negative.
The ratings alone never meant anyone should simply take a plunge. But they can offer as a starting indicate for your possess minute research.
Don’t miss: You can find copiousness of plain batch bargains in this year’s worst-performing sector, analysts contend
Create an email warning for Philip outpost Doorn’s Deep Dive columns here.
Philip outpost Doorn covers several investment and attention topics. He has formerly worked as a comparison researcher during TheStreet.com. He also has knowledge in village banking and as a credit researcher during a Federal Home Loan Bank of New York.
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