The well-known billionaire and shark tank investor Kevin O’Leary expects a sustained, multi-year upward movement on the broad US stock market. According to TipRanks, analysts recommend three stocks in particular for investors who want to profit from this.
• Keep an eye on CHIPS and Science Act and Inflation Reduction Act
• Kevin O’Leary: Increased government spending will boost stock market
• Analysts at TipRanks recommend BorgWarner, Alaska Air and Rollins
Washington is helping the US economy with the CHIPS and Science Act and the Inflation Reduction Act. “This is money that we’re going to print,” O’Leary said, “and where is it going? Anything in the S&P 500…You want to own the S&P while there’s so much dry powder out there,” Yahoo Finance quoted the venture capitalist and chairman as saying from O’Shares ETFs and has also spotted three stocks that numerous analysts recommend buying, according to data site TipRanks.
BorgWarner stock
Accordingly, BorgWarner is viewed predominantly positively. The automotive accessories manufacturer’s product range also includes powertrain technologies, including turbocharging systems, transmission systems and electrification solutions. These play an important role in increasing the efficiency, performance and sustainability of vehicles and will therefore continue to be in demand regardless of the current transformation in the industry towards greener transport options.
In order to be able to focus more on electric vehicles in the future, BorgWarner spun off its fuel systems and aftermarket business PHINIA and took it public in early July. Because of this focus on an EV world, Barclays analyst Dan Levy currently thinks BorgWarner stock is undervalued. As a result, he assigned an Overweight rating and a price target of $57.
At TipRanks, nine analysts recommend buying the stock and another recommends holding it. The average price target for BorgWarner shares is $53.10, representing upside potential of 33 percent compared to the current share price (as of 08/16/2023).
Alaska Air stock
A thumbs-up also goes to Alaska Air, a US airline that primarily aims to connect cities along the US West Coast through a network of regional partners. The aircraft industry, which was badly hit by the corona pandemic, is now recovering significantly. Alaska Air, valued for its high-quality service and customer satisfaction, was even able to achieve record sales in the second quarter of 2023.
The seven analysts listed at TipRanks all give the stock a buy rating. With an average price target of $64.86, the Alaska Air stock has upside potential of a whopping 45 percent.
Rollins stock
Alongside this, Rollins, one of the world’s leading providers of pest control services, might be worth a look. Investors had reacted disappointed to the latest quarterly report and consequently sent the Rollins file down. But according to Yahoo Finance, RBC analyst Ashish Sabadra also sees a lot of positives in the figures – such as the good start to June or that operating margins were weighed down by one-off items. He also expects sales and margins to improve in the future. Therefore, he believes that investors should benefit from possible setbacks: “We remain buyers in the event of any short-term weaknesses in the share,” said Sabadra.
According to TipRanks, three analysts recommend buying the stock. These analysts see the price target at an average of 49.67 US dollars, which would give Rollins shares an upside potential of around 20 percent.
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