Alphabet, Medtronic and three other stocks that "they still have an upward path"

Foto del autor


In the Search for stocks that still have upside potential After the very vertical increases experienced by the stock markets in the month of March, the experts of Morningstar they look at five companies that, in his opinion, could still bring joy to investors.

“After the recent bullish rally, the market is starting to feel tenseso it is necessary be very cautious«, say these analysts, who recommend looking at companies that are undervalued and have strong competitive advantages. Furthermore, for the selection of him, also They give priority to companies that have a notable presence in the portfolios of large investment funds.
And with all these premises in mind, Morningstar opts for these five American titles: Alphabet, PepsiCo, Comcast, RTX and Medtronic.
ALPHABET Regarding Google's parent company, the aforementioned economists point out that Its upside potential is around 15% ($171 price target per share) and are confident that the multinational knows refocus their AI and ad tech businesses.
Thus, they predict that its compound annual growth rate exceeds 8% in total revenues over five years and that its average operating margin in the same period reaches 30%. Additionally, they are optimistic about cash flow expectations and revenue prospects for YouTube, its cloud business and the search market.
Likewise, they trust that its more futuristic products in development, such as the self-driving car technology business, end up performing well.
PEPSICO Regarding the soft drink and snack manufacturer PepsiCo, these experts praise the «strength of its income, especially in 'snacks' and its wide competitive moat.»
Thus, they believe that “despite the challenges posed by advances in electronic commerce, greater competitive pressure and taxes on sugar and plastics, The management of the multinational has sufficient skill to take advantage of its scales in manufacturing and distribution”. However, they establish in the $176 your target price, a level slightly higher than its current price. COMCAST More upside potential seen in Comcast, setting the theoretical value of its shares at $60. As bullish catalysts, these strategists point to “constant growth in revenue per customer, its solid balance sheet and its robust cable business.”
Likewise, they are optimistic about the “NBCUniversal's unique assets, with its greater participation in the broadband market and its aggressive commitment to theme parks”. RTX Aerospace and military manufacturer RTX is another of Morningstar's stock bets. Specifically, they consider its diversification is “adequate” and they highlight its “broad economic moat.”
Also, come in the possible increase in the defense budget of the United States another of its bullish catalystswhich leads them to focus on the $112 the target price of its titles, with an implied upside potential close to 15% from current trading levels. MEDTRONIC Medical device maker Medronic rounds out this Morningstar list. A value that highlights its “broad economic moat, its solid position in the market, the diversification of its products and its commitment to innovation”. Furthermore, they believe that the group is well positioned to take advantage of growth opportunities and see the company capable of overcome turbulence arising from disruptions in supply chains and the decline in income linked to the covid pandemic.