Last week, the NASDAQ slipped below 13,200, making for a net loss from its all-time peak, reached earlier this month, 6.4%. If this trend continues the index will slip into correction territory, losing 10% of its peak. So what exactly is going on? At the bottom, it’s a mixed signal. The COVID-19 pandemic is starting to fade and the economy is starting to reopen – strong positives that will boost the market. But the economic startup brought with it inflationary pressures: more working people meant more consumers with money in their pockets, and a massive stimulus bill passed in recent months – and the bill working through Congress now, which amounts to $ 1.9 trillion. – have put additional funds into people’s wallets and liquidity into the economy. There is a pent up demand out there, and people who have money to spend, and those two factors will work to drive up the price. We can see one effect of all of this in the bond market, where ten-year Treasury bonds yield 1.4%, near one-year highs, and have been trending upwards in recent weeks. However, this may be a case of skipping, as Federal Reserve Chair Jerome Powell said in testimony before the Senate that he is not considering a move to raise interest rates. In other words, it is a confusing time. For those who feel lost in all the fog of the stock market, investment experts can offer a sense of clarity. Nobody is more than billionaire Steven Cohen. Cohen’s investment firm, Point72 Asset Management, relies on a strategy that involves investing in the stock market as well as a more macro approach. This strategy has cemented Cohen’s status as a highly respected investment powerhouse, with the guru making $ 1.4 billion in 2020 thanks to a 16% gain in the premier hedge fund Point72. In light of this, our focus shifts to Point72’s most recent 13F filing, which discloses the stocks the fund took out in the fourth quarter. Locking in on three tickers in particular, the TipRanks database reveals that each has secured “Strong Buy” analyst consensus and offers significant upside potential. Array Technologies (ARRY) The first new position is in Array Technologies, a ‘green technology’ company that provides tracking technology for large-scale solar energy projects. It is not enough just to use enough photovoltaic solar collector panels to power energy utilities; the panel must track the sun across the sky, and take into account the different seasons in its path. Array provides a solution to this problem with DuraTrack and SmarTrack products. Array boasts that its tracking system will increase the lifetime efficiency of the solar array project, and that the SmarTrack system can increase energy production by 5% overall. The company has clearly impressed its customers, having installed it in 30 countries, in more than 900 utility-scale projects. President Biden is expected to take executive action to boost green economy policies at the expense of the fossil fuel industry, and Array could potentially benefit from this political environment. The company’s shares are relatively new to the market, having conducted an IPO in October last year. The event was described as the ‘first major solar IPO’ in the US for 2020, and was a success. Shares opened at $ 22, and closed at $ 36. The company sold 7 million shares, raising $ 154 million, while another 40.5 million shares were placed on the market by Oaktree Capital. Oaktree is an investment manager who has held a majority stake in the company since 2016. Among Array fans is Steven Cohen. Raising 531,589 shares in Q4, ARRY Point’s new position72 is valued at over $ 19.7 million at its current valuation. Guggenheim analyst Shahriar Pourreza also appeared confident in the company’s growth prospects, noting that the stock looked undervalued. “Renewable energy companies have seen large capital inflows as a result of the ‘blue wave’ and Democratic control of the White House and both chambers of Congress; however, ARRY continues to trade significant discounts to peers, “the 5-star analyst noted. Pourreza added,” We continue to be optimistic on ARRY’s growth prospects driven by 1) tracking market share gains versus a fixed skewed system, 2) ARRY share gains. market in the tracking industry, 3) ARRY’s great opportunity in the international market with less penetration, 4) opportunity to monetize their existing customer base over the long term through extended warranties, software upgrades etc., which greatly increased margins. “In line with this bullish comment, Pourreza is rating ARRY Buy stocks, and the $ 59 price target implies a 59% increase from current levels. (To see Pourreza’s track record, click here) New stocks in emerging industries are likely to attract attention. from Wall Street professionals, and Array has a record of 8 reviews since going public.Of these, 6 are Buy and 2 are holding, making the consensus rating on the stock to Buy Strong.The average target price, at $ 53.75, shows room for ~ 45% increase in the next 12 months. (See ARRY stock analysis on TipRanks) Paya Holdings (PAYA) The second Cohen option we saw was Paya Holdings, a North American payment processing service. The company offers integrated payment solutions for B2B operations in the sector. education, government, health care, not-for-profit, and utilities. Paya offers more than $ 30 billion in payments processed annually, for more than 100,000 the customer. In mid-October last year, Paya completed its move to the public market through the merger of SPAC (a special acquisition company) with FinTech Acquisition Corporation III. Cohen stood right with this one bull. During Q4, Point72 took 3,288,843 shares, bringing the size of ownership to 4,489,443 shares. After this 365% increase, the current position value is ~ $ 54 million. Mark Palmer, 5-star analyst at BTIG, impressed by Paya’s prospects in the medium term, writing, “We hope PAYA will generate income growth among high-end youth over the next few years, with Integrated Solutions poised to grow in the mid-20s and Payment Service will grow in the mid single digit. At the same time, the company’s operating costs should grow in the context of 5%, in our opinion. Therefore, we believe PAYA’s EBITDA growth will be north of 20% over the next few years, and its adjusted EBITDA margin will increase to 28% at YE21 from 25% in 2019. ”Palmer set a target price of $ 18 on PAYA’s stock, which shows confidence in 49% growth for next year, and rates the stock as a Buy. (To view Palmer’s track record, click here) Strong Buy PAYA analyst consensus rating is unanimous, based on 4 Buy-side reviews set in the past few weeks. The stock has an average target price of $ 16, which represents ~ 33% potential upside from the stock’s current price of $ 12.06. (See PAYA’s stock analysis on TipRanks) Digested Pharma (DRNA) Lastly is Digested Pharma, a clinical stage biotechnology company with a focus on discovery, research and development of treatments based on the RNA (RNAi) interference technology platform. The company has 4 drug candidates in various stages of clinical trials and another 6 in preclinical studies. The company’s pipeline clearly caught Steven Cohen’s eye – to take up new shares totaling 2.366 million shares. These holdings are valued at $ 63.8 million at present value. The drug candidate furthest along the Digestive pipeline is nedosiran (DCR-PHXC), which is being investigated as a treatment for PH, or primary hyperoxaluria – a group of genetic disorders that cause life-threatening kidney disorders through overproduction of oxalate. Nedosiran inhibits the enzyme that causes this overproduction, and is currently in Phase 3 trials. Best results are expected in mid ’21 and, if all goes according to plan, NDA applications for depletion are anticipated towards the end of 3Q21. Covering the stock for Leerink, analyst Mani Foroohar sees nedosiran as key to the company’s future in the near term. “We expect nedosiran to gain approval by mid-2022, putting the drug roughly a year and a half behind competitor Oxlumo (ALNY, MP) at PH1 … A successful outcome will turn DRNA into a commercially rare disease company in a duopoly that attracts the market. with best-in-class label area, “Foroohar said. To this end, Foroohar rated DRNA with Better Performance (i.e. Buy), and its target price of $ 45 represents a potential one-year increase of 66%. (To watch Foroohar’s track record , click here) Overall, Digest Pharma has 4 Buy reviews on record, making a unanimous Strong Buy.DRNA shares are trading at $ 26.98, and a $ 38 average target price puts the upside ~ 41% over 12 months (See DRNA stock analysis at TipRanks) To find great ideas for trading stocks with attractive ratings, visit TipRanks’ Best Stocks to Buy, al at a recently launched platform that brings together all the equity insights of TipRanks. Disclaimer: The opinion expressed in this article is that of ntent eminent analysts 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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