The latest POWR Rating calculations indicate dozens of stocks that have just recently ascended to a rating of A (Strong Buy). However, after digging in deeper there were 4 stocks that really stood out above the crowd. That is why we are going to put the spotlight on FTNT, PRLB, PZZA and CWH today.
Fortinet (FTNT)
Network security solutions will likely be in need for decades, if not centuries to come. The spike in online communications brought about by the coronavirus pandemic has made network security, bandwidth and IT in general that much more important.
FTNT provides these essential tech services along with unified threat management network security solutions for the “new economy” as we transition through and beyond the coronavirus pandemic. FTNT clients include private businesses as well as governmental entities across the globe. From virtual private networks (VPNs) to antivirus protection, firewalls, intrusion prevention and anti-spam, FTNT does it all. IN short, FTNT is a one-stop source for cyber protection.
With a high forecast of $160 and a #6 ranking out of 23 stocks in the Software – Security category, FTNT appears to be a shooting star. Though FTNT has a forward P/E Ratio in excess of 52, this stock qualifies as a long-term hold simply because businesses are becoming that much more cloud-dependent with each passing day.
Proto Labs (PRLB)
Fast forward 10 years into the future and you would likely find society is dependent on 3-D printing. It is even possible the majority of new homes built in 2025 and beyond will be constructed with 3-D printing technology. Furthermore, businesses of all different varieties are incorporating the use of 3-D printing provided by the likes of PRLB.
PRLB also provides manufacturing services through injection molding and CNC machining. In fact, half the company’s revenue stems from plastic injection molding yet its 3-D printing services are helping the company win new clients as time progresses.
With locations in North America, Germany, the UK, Spain, France, Japan and Italy, PRLB is poised to be a power player for decades to come. Though PRLB is priced fairly high, some analysts believe it is fairly valued at $145, meaning there is still considerable from for upward movement. The POWR Ratings have PRLB rated at the top of six Technology - 3D Printing stocks with an A Trade Grade and A Peer Grade.
Papa John’s (PZZA)
Few stocks move from $35 to nearly $85 without a significantly positive news event. PZZA has accomplished this feat in the months since the coronavirus washed across the nation and the entirety of the globe. Though pizza delivery and pickup is quite tempting now that traditional sit-down restaurants are closed, PZZA had lost considerable momentum across the past couple years, making its upward ascent somewhat surprising.
However, when you take a close look at PZZA's POWR Rating Components, it becomes increasingly clear the hype is warranted. The stock has As in every POWR Component category but for its Industry Rank grade of C. Out of 48 restaurant stocks, PZZA is rated #6. According to TipRanks, seven analysts recommend buying PZZA, five recommend holding and none recommend selling.
PZZA just might turn out to be a long-term winner if those who ordered the company’s pizza amidst the pandemic prove loyal to the company in the months and years to follow. When in doubt, consider what matters most: taste. PZZA’s products taste better than Domino’s. PZZA is back to its winning ways and here to stay for the long haul.
Camping World Holdings (CWH)
Wouldn’t it be nice to own a stock with As in nearly every POWR Rating Component and a top five ranking out of more than 30 companies in its space? You have the opportunity to own such a stock in CWH.
CWH is currently trading at its 52-week high as camping is en vogue now that the majority of businesses are shuttered. Even when the doors reopen, Americans across the land will hesitate to patronize crowded stores, theaters and malls simply because the weather is lovely and the looming threat of coronavirus contraction.
CWH provides RVs at Camping World locations, RV-related products at its Good Sam stores, services, protection plans and more. CWH’s stellar first-quarter earnings combined with the unparalleled leadership of CNBC personality Marcus Lemonis makes this stock quite appealing in the short-term as well as the long-term.
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FTNT shares were unchanged in after-hours trading Tuesday. Year-to-date, FTNT has gained 34.83%, versus a -3.72% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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