Luckily one innovative Israeli tech company has the answer. TipRanks is using the latest technology to revolutionize the world of investing. Founded back in 2012 by Uri Gruenbaum and Gilad Gat, the company’s proprietary NLP algorithms track and rank over 4,900 Wall Street analysts (as well as hedge fund managers, insiders and financial bloggers).
The result: an objective and unbiased list of the best-performing financial experts. This is based on three key factors: the analyst’s success rate, average return per rating and the statistical significance i.e. a higher number of recommendations that ensures the expert's consistency.
For example, right now the number 1 analyst on Wall Street is Canaccord Genuity’s Richard Davis (Track Record & Ratings). He is currently tracking an extremely impressive success rate of 78%, alongside an average return per each stock rating of 36.1%. This is measured across 350+ stock ratings.
And these insights matter because analysts who have a strong track record in the past have been shown to have a higher likelihood of outperforming the future. Even better, you can dial down into the track record of the analyst into any specific stock in their coverage universe. These top analyst ratings can help investors generate new investment ideas, and research stocks they already own.
When you think that October was the worst month for the S&P 500 since September 2011, with the US markets losing almost $2 trillion, you want to make sure that you are following the analysts with the best stock picking ability- and not the worst.
Put simply, "We provide our users with the simple answer of whether that guy can be trusted or not" says CEO Gruenbaum.
With that in mind, here we take a closer look at TipRanks’ Top 10 analysts and some of their favorite stock picks right now. All these ratings have been made in the last three months. Plus by dialing into their 12-18 month price target, we can get a better idea of just how far analysts see these stocks soaring in the coming months:
1 Canaccord Genuity’s Richard Davis
Top Stock Idea: Bandwidth Inc (BAND)
TipRanks’ No. 1 analyst believes management are executing flawlessly and sees strong fundamental momentum leading to continued gains in 2019. His $60 price target for the communications platform indicates shares can rise 24%.
2 RBC Capital’s Ross MacMillan
Top Stock Idea: Apptio Inc (APTI)
Shares of this business management platform are good value at current levels, says MacMillan, with upside potential of over 40%. “New initiatives around cloud cost management and agile development are compelling” adds the analyst.
3 RBC Capital’s Gerard Cassidy
Top Stock Idea: Morgan Stanley (MS)
For this leading financial stock, Cassidy notes another strong quarter for shareholders with investment banking and markets revenues increasing robustly. He sees shares surging over 30% from current levels to hit $60.
4 RBC Capital’s Matthew Hedberg
Top Stock Idea: Rapid7 (RPD)
RBC’s Hedberg calls this Boston-based cybersecurity stock a ‘top investment’ because of its unique data- and analytics-driven approach to security operations. His $42 price target indicates 21% upside from current levels.
5 Jefferies’ David Windley
Top Stock Idea: Humana Inc (HUM)
Windley is the top analyst in the healthcare sector, and the 5th best analyst overall. He has just raised his price target for Humana to $410 citing the health insurer's "solid" Q3 results. This new target suggests 21% upside potential from current levels.
6 Oppenheimer’s Glenn Greene
Top Stock Idea: Worldpay Inc (WP)
Worldpay has one of the more attractive growth outlooks within Payment Processing, cheers Greene. He sees the stock benefiting from the ongoing transition to electronic payments and away from cash and cheques. As a result he reiterates his $108 price target (20% upside potential).
7 Oppenheimer’s Brian Schwartz
Top Stock Idea: RingCentral (RNG)
This five-star analyst believes RNG has a leading technology vision, calling the stock ‘a secular winner and quality SaaS [software as a service] asset’. His $92 price target translates into 10% upside potential.
8 Jefferies’ Brian Fitzgerald
Top Stock Idea: Sell Shutterstock (SSTK)
Fitzgerald strikes a more bearish note with his recent ratings. He tells investors to sell photo site Shutterstock while slashing his price target from $44 to $35 (8% downside potential).
9 Cantor Fitzgerald’s Joseph Foresi
Top Stock Idea: Exela Technologies (XELA)
Quarterly top-line results came in above expectations for this automation company, and 2018 revenue guidance was raised. Foresi sees revenue growth acceleration pushing shares 70% to $9.
10 Jefferies’ Ken Usdin
Top Stock Idea: KeyCorp (KEY)
Usdin believes this regional US bank can gain 22% to reach $23. He calls the stock his top ‘Franchise Pick’ with multiple positive catalysts on the horizon.
Harriet Lefton is head of content at TipRanks, a comprehensive investing tool that tracks more than 4,800 Wall Street analysts as well as hedge funds and insiders. You can find more of TipRanks’ stock insights here