2 “strong buy” stocks showing huge growth

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IInflation may be on the rise, but for now, at least, investors don’t seem to care. The NASDAQ and S&P 500 hold just below their all-time highs, reflecting the widely held feeling that with low interest rates stocks will offer the highest returns for the foreseeable future.

And the stocks have been delivered. The S&P is up 13% year-to-date, and the NASDAQ, despite greater volatility and some weakness from large tech companies, is up 7%. These gains occur even as inflation begins to rise; At the end of April, the PCE inflation index was up 3.6% per year, and the Biden administration’s spending plans are expected to push it up further. The Federal Reserve, for its part, has no plans to raise interest rates yet; the combination of higher inflation and lower interest rates has been described as a “transitional sweet spot” for the economy.

For retail investors, this means now is the time to look at growth stocks. Despite some notable setbacks, some names have also outpaced overall market gains in recent months and are showing clear signs of further growth to come. We used the TipRanks platform to research two of these stocks. A glance at their details, along with comments from Wall Street analysts, should tell why they’re such a compelling buy.

Northern Oil and Gas (NOG)

We will start in the energy sector. Northern Oil and Gas is a hydrocarbon exploration company, focused on the Williston Basin of North Dakota and Montana, with smaller operations in New Mexico and Pennsylvania. If the northern states sound familiar to you, it was the region that in the early 2000s put US oil and gas production on the map and started the boom in fracking production. Northern has more than 7,000 production wells on more than 247,000 acres of owned land. The company has 205 million barrels of oil equivalent in proven reserves on its properties, with production split at 55% / 45% between liquid hydrocarbons and gas.

Like many labor-intensive industries, energy extraction suffered heavy losses at the start of the Covid crisis last year, and Northern was no exception. Since the third quarter of 2020, however, the losses have moderated. The 1Q21 earnings report showed the smallest loss in EPS in the past four quarters, at $ 1.66 per share. Total oil and gas sales for the quarter reached $ 157.3 million and production increased 7.5% from the prior quarter.

Northern felt confident enough in her financial situation to declare her first dividend. The payment, of 3 cents per common share, will be made in July to shareholders of record on June 30. At the declared rate, the dividend has a modest yield of 0.66%. The key point here is not the size of the dividend, but rather whether management feels secure enough to start the payments.

Investors also have confidence in northern oil and gas. The company’s shares have risen 126% in the past 12 months. These gains have been concentrated in recent months; NOG stock is up 115% year-to-date.

Commenting on this action for Truist, analyst Neal Dingmann writes: “Northern has made tremendous financial progress and the company can now begin to reap the rewards of its labor, in our opinion. NOG will have several options for various additional returns to shareholders, as we expect the company to generate nearly $ 150 million in FCF this year and likely even more next year if prices hold at least given the minimum hedges l ‘next year. We believe the company will continue to benefit from its organic and external strategies from previous quarters. “

According to his comments, Dingmann is pricing the shares as a buy, and his price target of $ 25 implies a 33% hike for the coming year. (To look at Dingmann’s track record, Click here.)

The firm’s stance in some of the nation’s most productive oil and gas regions has led Wall Street to a unanimous conclusion: NOG shares are a strong buy, based on 4 recent positive reviews. The stock is selling for $ 18.86 and the average price target of $ 20.50 indicates a potential upside of 9% year on year. (See Northern’s stock analysis on TipRanks.)

Meta Financial Group (CASH)

Then we will move from the energy sector to the finance sector. Meta Financial is a savings and loan holding company, whose operations are managed by its subsidiary, MetaBank. The company offers retail banking, electronic payment processing and insurance premium financing among its services.

In its recent financial report for the second quarter of fiscal 2021, which is normally the strongest quarter of the year for the company, Meta Financial reported revenue of $ 187.3 million, missing from 4.48 million dollars Wall Street estimates. BPA has risen sharply, however. Reported earnings per share of $ 1.84 was up 26% from 2Q20 and even more impressive 119% from 1Q21. It was also up $ 0.27 from Street’s forecast.

The company reported its gross loan and lease accounts at $ 3.65 billion, up 6% from the end of the previous calendar year. Average deposits in the fiscal second quarter increased 181% year-on-year to $ 9.29 billion. In fiscal season 2021, MetaBank granted $ 1.79 billion in prepayment loans, up 34% year-over-year.

At the same time, Meta Financial’s stock price has shown serious growth. Shares have gained 46% year-to-date and are up 165% in the past 12 months.

William Wallace, 5-star analyst at Raymond James, is impressed with Meta Financial following the F2Q21 results, writing: “All in all, removing layers was another strong quarter for Meta on several trading fronts, where its diversified model continues to serve him well. At the end of the day, with stocks trading at a fairly large discount on a P / E basis, we continue to believe that the risk / return dynamic is very interesting, where the strength of its profitable domestic activities, now more proven in the credit perspective, is expected to continue to generate higher profitability than their peers.

Wallace rates the stock as a strong buy, and his price target of $ 63 implies an 18% 12-month upside potential. (To look at Wallace’s record, Click here.)

There are 3 recent reviews on CASH stocks, and all of them are positive; again, we are looking at a stock whose consensus strong buy rating is unanimous. Meta Financial is priced at $ 53.23 and the average price target of $ 59.33 suggests an 11% rise from this level. (See Meta Financial’s stock analysis on TipRanks.)

To find great ideas for trading stocks at attractive valuations, visit TipRanks‘Best Stocks to Buy, a recently launched tool that brings together all the information about TipRanks stocks.

Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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