HomeMost PopularExploring Investment Gems: Analyzing 2 Top-Scoring Stocks Poised for Growth

Exploring Investment Gems: Analyzing 2 Top-Scoring Stocks Poised for Growth

Actionable Trade Ideas

always free

Unlocking Market Enthusiasm

The ascent of the S&P 500 to unprecedented highs reflects the prevailing optimism among investors towards the equities market. With the dawn of 2022 witnessing a bullish charge that still appears vigorous, the question that arises is which stocks merit attention amid this euphoria. Here, the Smart Score tool, a brainchild of TipRanks, comes to the rescue. Formulated through a blend of natural language processing and a sophisticated AI algorithm, this tool distills vast amounts of trading data into a single numerical evaluation, offering a quick insight into a stock’s projected trajectory.

By juxtaposing every publicly traded company against a set of established predictive factors, the Smart Score assigns scores ranging from 1 to 10, identifying stocks worthy of detailed scrutiny. Notably, a ‘Perfect 10’ score denotes shares that warrant closer inspection.

Delving Into Alphatec Holdings

Alphatec Holdings (‘ATEC’) emerges in the realm of medical technology, specializing in spinal surgery innovations. Spearheading advances in the field, Alphatec furnishes an array of medical devices and procedures for spinal stabilization surgeries. Tailored to different spinal regions from the cervical to the pelvic, the company endeavors to establish its offerings as the gold standard in spinal surgical interventions.

In its recent 4Q23 earnings release, Alphatec marked several significant milestones. These included a 27% uptick in training new surgeon users in 2023, with 500 fresh users onboarded during the year. Additionally, the company expanded its lateral approach platform, completing the full rollout of the LTP (lateral transpsoas) + Midline ALIF methodologies, while also unveiling the Calibrate LTX, an expandable lateral implant. Amidst these releases were 15 new products and line extensions throughout 2023.

The escalating acceptance of Alphatec’s spinal surgical solutions within the medical community has translated into robust financial performance. Notably, the 4Q23 report disclosed a quarterly revenue figure of $138 million, reflecting a 30% year-on-year surge that exceeded estimates by $5.6 million. The annual revenue for 2023 stood at $482 million.

Challenges and Growth Prospects

Despite the commendable revenue growth, Alphatec grapples with high operating costs, leading to recurrent quarterly net losses. In 4Q23, the net loss reached 37 cents per share, surpassing the previous-year loss by 4 cents and estimates by 11 cents.

However, Canaccord Genuity analyst Caitlin Cronin remains sanguine about the company’s upside potential, emphasizing Alphatec’s revenue uptrend and expanding footprint in the spinal surgery segment. Cronin’s bullish stance is underscored by the management’s robust execution in driving operational efficiency alongside strong productivity trends. The analyst’s optimism is palpable when projecting a $25 price target, implying an impressive 86% upside potential within a one-year timeframe.

Aggregating the views of Wall Street analysts, Alphatec stock garners a unanimous Strong Buy rating, with 6 positive recommendations in recent months. Currently trading at $13.42, the average price target of $24.20 hints at an 80% surge over the next year.

image 19

Navigating the MoneyLion Terrain

Steering our attention towards MoneyLion (‘ML’), we shift gears into the fintech domain, spotlighting a company engaged in personal banking services. Catering to a broad spectrum of consumers, MoneyLion offers a comprehensive suite of services encompassing lending, financial advisory, and investment avenues. Targeted at the sizable segment of Americans living paycheck to paycheck, MoneyLion endeavors to simplify financial options, equipping customers with enhanced money management tools, and fostering credit enhancement.

Empowering its clients with checking and savings accounts, access to personal loans, and expedited paycheck provisions, MoneyLion stands out through services like Instacash that facilitate anticipatory fund access prior to payday. Seamless account tracking and investment utilization are further streamlined through the company’s user-friendly online applications. With over 12 million customers in its fold, MoneyLion boasts more than 150 million leads in its customer database platform and processes over 60 million customer inquiries quarterly.

An epochal development unfurled on February 6 as MoneyLion announced a strategic alliance with the Big Four giant Ernst & Young. The collaboration aims to broaden MoneyLion’s financial ecosystem’s availability within the banking sphere while fostering revenue expansion and profitability through an enriched customer acquisition strategy. Harnessing the transformative potential of digital technology, MoneyLion aims to leverage this partnership as a growth and innovation catalyst.

Scrutinizing MoneyLion’s financial performance reveals a trajectory marked by escalating revenue growth. Notably, the 3Q23 topline breached the $110 million threshold, posting a 24% annual uptick, albeit falling short of estimates by $3.13 million. The quarter witnessed MoneyLion’s record adjusted EBITDA of $13 million, further attesting to the company’s financial vigor.

MoneyLion’s Strategic Partnership with EY Sparks Analyst Enthusiasm

MoneyLion’s Strategic Partnership with EY Sparks Analyst Enthusiasm

Analyst Praises MoneyLion’s New Venture

The latest performance of MoneyLion has captured the attention of B. Riley analyst Hal Goetsch, who expresses optimism regarding the company’s recent partnership with EY. Goetsch believes that this collaboration will gain substantial momentum in 2024, leading to increased ML platform revenues within its enterprise (B2B) segment.

Significant Implications Moving Forward

Previously, MoneyLion hinted at expanding its marketplace and personal financial management offerings across a broader range of banks and financial institutions to facilitate digital adoption. The unexpected partnership with EY has heightened Goetsch’s outlook on MoneyLion, deeming it a crucial catalyst for growth not only in 2024 but also in the foreseeable future.

Positive Analyst Recommendations

Impressed by the developments, Goetsch assigns MoneyLion a Buy rating coupled with a price target of $102, indicating a substantial one-year upside of 97%. This recommendation aligns with the unanimous Strong Buy consensus rating received by MoneyLion, backed by four recent positive analyst reviews. Currently trading at $51.86, the average price target of $78.33 implies a potential 51% appreciation within the next 12 months.

MoneyLion Image

To discover undervalued stocks, one can explore TipRanks’ Best Stocks to Buy, a comprehensive tool amalgamating all equity insights provided by TipRanks.

Disclaimer: The opinions presented in this article are solely those of the featured analysts. This content serves solely informational purposes, emphasizing the importance of conducting thorough personal analysis before making any investment decisions.

The perspectives and thoughts outlined in this piece are the author’s own and do not necessarily mirror those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.