3 “Perfect 10” Stocks to Weather the Market Storm, , on October 28, 2020 at 11:26 pm

By High West Capital Partners
On October 28, 2020
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After a period of cooling off its impact on the markets, fear of the coronavirus played havoc on Wall Street again today. Consequentially, the tech heavy Nasdaq had its worst day since early September, dropping by almost 4%. In times like these, a more comprehensive stock analysis can steer investors in the direction of returns. Rather than looking solely at more conventional factors like fundamental or technical analyses, other metrics can play a key role in determining whether or not a particular stock is on a clear path forward. TipRanks offers a tool that does exactly that. Its Smart Score measures eight key metrics including fundamentals and technicals while also taking into account analyst, blogger and news sentiment as well as hedge fund and corporate insider activity. After analyzing each metric, a single numerical score is generated, with 10 being the best possible result. Using the Best Stocks to Buy tool, we were able to pour through TipRanks’ database, filtering the results to show only the names that have earned a “Perfect 10” Smart Score. We found three that fit the profile. Let’s jump right in. Centrus Energy Corporation (LEU)First on the list is Centrus Energy, a company whose niche is shown by its stock ticker. Centrus is a supplier of ‘low enriched uranium,’ or LEU, for the commercial power market. LEU is the fuel used in civilian sector nuclear power plants. Centrus has a global customer base, and an order-book that’s filled out to 2030. In addition to producing and supplying LEU for power generation, Centrus offers expertise in uranium handling and nuclear fuel design, and provides tritium for the US Navy.After seeing revenues dip in Q1 this year – no surprise, since most of the world’s economies dipped – Centrus reported a sequential gain in Q2’s top line. Revenues came in at $75.7 million, with the net income reported at $33.7 million. The net income was far ahead of the $15.6 million net loss registered in the year-ago quarter. In line with the strong results, LEU shares have gains 44% year-to-date.Among LEU’s fans is Roth Capital analyst Joe Reagor, who rates the stock a Buy and gives it an $18 price target. This figure indicates a robust 82% upside potential from current levels. (To watch Reagor’s track record, click here)In his comments, Reagor noted that LEU is best suited as a long-term stock play, writing, “We believe LEU is poised to show revenue and earnings growth over the next two years due to strong contract margins. Additionally, we see long-term growth opportunities beyond 2022… We also note that the company anticipates significant revenue growth over the next two years, which should drive meaningful earnings growth, in our opinion.”Overall, Centrus has 2 recent Buy reviews on file, making the analyst consensus view of the stock a Moderate Buy. The shares are selling for $9.90 and their $18 average price target matches Reagor’s above. LEU’s perfect Smart Score is based on three factors: positive analyst sentiment, solid corporate insider activity, and strong technical and fundamentals. (See LEU stock analysis on TipRanks)Perion Network (PERI)The next stock on our list is an international tech company. Perion engagement and monetization applications for ad tech, on web and mobile platforms. The company reaches across the developed world, with offices on the East and West Coasts, Chicago, Milan, Paris, and Barcelona. Perion boasts over 1000 brand advertisers and more than 500 publishers on its platform. The company has a market cap of $203 million.PERI shares are up this year, having recovered from the mid-winter market swoon. The stock has gained 15% year-to-date.The year-to-date gains were posted even as 1H20 revenues and earnings sank. The corona crisis hit markets hard, and advertising budgets felt the crunch – and so did Perion. The top line fell from $78 million at the end of 4Q19 to just $60 million at the end of 2Q20. Earnings remained positive, but came in at just 5 cents for Q1 and 4 cents for Q2.Jason Helfstein, 5-star analyst with Oppenheimer, describes PERI’s mid- to long-term prospects, saying, “While the 2H:20 ad recovery should benefit all of PERI’s advertising segments, the company is seeing stronger than anticipated growth within newly acquired CIQ and Pub Ocean, a key component to the company’s vertical integration strategy. We see acceleration in growth of these new business segments as a catalyst for PERI going forward.”Along with those comments, Helfstein rates the stock an Outperform (i.e. Buy), and his $10 price target implies a 40% one-year gain. (To watch Helfstein’s track record, click here)Perion Network has a Strong Buy analyst consensus rating, based on a unanimous 3 Buy reviews. The stock’s average price target of $10.33 is slightly more bullish than Helfstein’s, suggesting a 44% upside over the next 12 months. But that’s not the only datapoint in PERI’s favor. Perion kept its perfect Smart Score based on bullish blogger opinions, increased hedge fund activity and a positive sentiment from investors. (See PERI stock analysis on TipRanks)DLH Holdings (DLHC)Our last Prefect 10 stock, Atlanta-based DHL Holdings, is primarily a government contractor agency. The company controls tech subsidiaries that offer tech solutions for business process outsourcing and program management. Clients include the US Departments of Health and Human Services, Defense, and Veterans Affairs, as well as the National Institutes of Health and the Centers for Medicare and Medicaid Services. Federal Government contracts are good work for the companies that can win them, and DHL’s share price and quarterly results reflect that. The stock has more than doubled so far this year, gaining 116%. The company also seems to have fared well despite the corona crisis. Revenues remained steady from 2H19 through 1H20, ranging between $51 and $54 million. Both the lowest and highest top-line results were recorded in 2020. Earnings gave an even clearer indication of strength, rising to 33% to 16 cents per share in Q1, and staying there in Q2.Earlier this month, DHL announced the acquisition, in a deal worth $32 million in cash, of IBA, one of the Defense Department’s tech providers in the health sector. DHL funded the acquisition through a draw on its revolving credit facility.Covering this stock for Canaccord, 5-star analyst Ken Herbert notes positive aspects of the IBA move. He writes, “The acquisition strengthens DLHC’s position with the U.S. Department of Defense (DoD), in particular. We believe the acquisition should continue the push into higher margin, higher growth markets, and it should continue to be well-received by investors.”Herbert sets a Buy rating on the stock, and adds a $12 price target that implies room for 27% growth in the year ahead. (To watch Herbert’s track record, click here)The Moderate Buy rating on DHLC is based on 2 recent reviews, both Buys. This is stock is currently priced at $9.07 and its $11.50 average price target suggests it will grow 26% from that level over the next months.In addition, bloggers show Bullish sentiment on DHLC, as do insiders. All comes down to a perfect Smart Score. (See DLHC stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

3 “Perfect 10” Stocks to Weather the Market StormAfter a period of cooling off its impact on the markets, fear of the coronavirus played havoc on Wall Street again today. Consequentially, the tech heavy Nasdaq had its worst day since early September, dropping by almost 4%. In times like these, a more comprehensive stock analysis can steer investors in the direction of returns. Rather than looking solely at more conventional factors like fundamental or technical analyses, other metrics can play a key role in determining whether or not a particular stock is on a clear path forward. TipRanks offers a tool that does exactly that. Its Smart Score measures eight key metrics including fundamentals and technicals while also taking into account analyst, blogger and news sentiment as well as hedge fund and corporate insider activity. After analyzing each metric, a single numerical score is generated, with 10 being the best possible result. Using the Best Stocks to Buy tool, we were able to pour through TipRanks’ database, filtering the results to show only the names that have earned a “Perfect 10” Smart Score. We found three that fit the profile. Let’s jump right in. Centrus Energy Corporation (LEU)First on the list is Centrus Energy, a company whose niche is shown by its stock ticker. Centrus is a supplier of ‘low enriched uranium,’ or LEU, for the commercial power market. LEU is the fuel used in civilian sector nuclear power plants. Centrus has a global customer base, and an order-book that’s filled out to 2030. In addition to producing and supplying LEU for power generation, Centrus offers expertise in uranium handling and nuclear fuel design, and provides tritium for the US Navy.After seeing revenues dip in Q1 this year – no surprise, since most of the world’s economies dipped – Centrus reported a sequential gain in Q2’s top line. Revenues came in at $75.7 million, with the net income reported at $33.7 million. The net income was far ahead of the $15.6 million net loss registered in the year-ago quarter. In line with the strong results, LEU shares have gains 44% year-to-date.Among LEU’s fans is Roth Capital analyst Joe Reagor, who rates the stock a Buy and gives it an $18 price target. This figure indicates a robust 82% upside potential from current levels. (To watch Reagor’s track record, click here)In his comments, Reagor noted that LEU is best suited as a long-term stock play, writing, “We believe LEU is poised to show revenue and earnings growth over the next two years due to strong contract margins. Additionally, we see long-term growth opportunities beyond 2022… We also note that the company anticipates significant revenue growth over the next two years, which should drive meaningful earnings growth, in our opinion.”Overall, Centrus has 2 recent Buy reviews on file, making the analyst consensus view of the stock a Moderate Buy. The shares are selling for $9.90 and their $18 average price target matches Reagor’s above. LEU’s perfect Smart Score is based on three factors: positive analyst sentiment, solid corporate insider activity, and strong technical and fundamentals. (See LEU stock analysis on TipRanks)Perion Network (PERI)The next stock on our list is an international tech company. Perion engagement and monetization applications for ad tech, on web and mobile platforms. The company reaches across the developed world, with offices on the East and West Coasts, Chicago, Milan, Paris, and Barcelona. Perion boasts over 1000 brand advertisers and more than 500 publishers on its platform. The company has a market cap of $203 million.PERI shares are up this year, having recovered from the mid-winter market swoon. The stock has gained 15% year-to-date.The year-to-date gains were posted even as 1H20 revenues and earnings sank. The corona crisis hit markets hard, and advertising budgets felt the crunch – and so did Perion. The top line fell from $78 million at the end of 4Q19 to just $60 million at the end of 2Q20. Earnings remained positive, but came in at just 5 cents for Q1 and 4 cents for Q2.Jason Helfstein, 5-star analyst with Oppenheimer, describes PERI’s mid- to long-term prospects, saying, “While the 2H:20 ad recovery should benefit all of PERI’s advertising segments, the company is seeing stronger than anticipated growth within newly acquired CIQ and Pub Ocean, a key component to the company’s vertical integration strategy. We see acceleration in growth of these new business segments as a catalyst for PERI going forward.”Along with those comments, Helfstein rates the stock an Outperform (i.e. Buy), and his $10 price target implies a 40% one-year gain. (To watch Helfstein’s track record, click here)Perion Network has a Strong Buy analyst consensus rating, based on a unanimous 3 Buy reviews. The stock’s average price target of $10.33 is slightly more bullish than Helfstein’s, suggesting a 44% upside over the next 12 months. But that’s not the only datapoint in PERI’s favor. Perion kept its perfect Smart Score based on bullish blogger opinions, increased hedge fund activity and a positive sentiment from investors. (See PERI stock analysis on TipRanks)DLH Holdings (DLHC)Our last Prefect 10 stock, Atlanta-based DHL Holdings, is primarily a government contractor agency. The company controls tech subsidiaries that offer tech solutions for business process outsourcing and program management. Clients include the US Departments of Health and Human Services, Defense, and Veterans Affairs, as well as the National Institutes of Health and the Centers for Medicare and Medicaid Services. Federal Government contracts are good work for the companies that can win them, and DHL’s share price and quarterly results reflect that. The stock has more than doubled so far this year, gaining 116%. The company also seems to have fared well despite the corona crisis. Revenues remained steady from 2H19 through 1H20, ranging between $51 and $54 million. Both the lowest and highest top-line results were recorded in 2020. Earnings gave an even clearer indication of strength, rising to 33% to 16 cents per share in Q1, and staying there in Q2.Earlier this month, DHL announced the acquisition, in a deal worth $32 million in cash, of IBA, one of the Defense Department’s tech providers in the health sector. DHL funded the acquisition through a draw on its revolving credit facility.Covering this stock for Canaccord, 5-star analyst Ken Herbert notes positive aspects of the IBA move. He writes, “The acquisition strengthens DLHC’s position with the U.S. Department of Defense (DoD), in particular. We believe the acquisition should continue the push into higher margin, higher growth markets, and it should continue to be well-received by investors.”Herbert sets a Buy rating on the stock, and adds a $12 price target that implies room for 27% growth in the year ahead. (To watch Herbert’s track record, click here)The Moderate Buy rating on DHLC is based on 2 recent reviews, both Buys. This is stock is currently priced at $9.07 and its $11.50 average price target suggests it will grow 26% from that level over the next months.In addition, bloggers show Bullish sentiment on DHLC, as do insiders. All comes down to a perfect Smart Score. (See DLHC stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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