Stock Groups

Analysts see Nio & Zynga as long-term winners

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Chinese company Nio Inc’s Nio Inc’s opening bell was rung by Tianshu LI and his company leadership to celebrate the company’s initial public offer (IPO). This took place at New York Stock Exchange in New York (NYSE) on September 12, 2018. 

Brendan McDermid | Reuters

Markets have reached all-time heights despite the fact that companies are facing inflationary pressures as well as labor shortages. However, investors must keep an eye on the long-term when choosing stocks.

Investors and analysts can gain insight from earnings guidance to determine what the quarters ahead hold for them.

TipRanks which monitors the top stock-pickers, has determined that these five companies are long-term winners. This is how the stocks should perform in 2019: 

Datadog 

The cloud is transforming enterprise business infrastructure. Companies who help to manage and secure this infrastructure are filling the gap. Datadog (DDOG) has seen an impressive run since its 2019 IPO, and an even more “extraordinarily strong” third quarter, according to Jack Andrews of Needham & Co. Recent quarterly results across the board were reported by the company.  

Andrews upgraded the price target for this stock to $236, from $173.  

That was his statement. DDOG’The company’s performance in the third quarter was outstanding and it is “arguably the strongest fundamental story of all enterprise software.” Andrews is positive that the company is performing well with its existing offerings, and is increasing its conversion rate to other products within its suite.  

Analysts say that customers have been ordering more services quarter by quarter due to DDOG’s high rate of product innovation. Cloud Security Posture, and Cloud Workload Security tools have both been launched by Datadog. Datadog’s security solutions are still in the early stages but offer significant upside when properly commercialized.  

Andrews added that DDOG continues to fire on every cylinder. He also noted that market competition in the current market is almost non-existent and that the company should keep a positive outlook on it.  

TipRanks places Andrews as No. From more than 7,000 analyst profiles, Andrews ranks 80. He has a success rate of 73%. Average ratings returned by his rating have been 53.8%.  

Get One  

Snap OneSNPOThe ) is the place to go for smart solutions in homes and businesses. Snap One just published a third-quarter sales record and now focuses on consolidating its position in the “living smart” end market, according to Stephen Volkmann from Jefferies.  

Volkmann stated that his company had been keeping a large inventory in order to counter persistent supply-side headwinds. He also said that their business model allows for a lot of growth potential. Volkmann pointed out that Snap OneIt is “the latest B2B distributor to start on what has become an attractive investment model to consolidate and grow a small niche market.” 

The stock was rated Buy by the analyst and the price target set at $24 per share.  

Snap One has seen organic growth via mergers and acquisitions. With its branch and distribution network, Snap One is leveraging the significant home integration trends. Volkmann anticipates that the market will expand by about 11% per year. Supply chain issues are somewhat reduced due to Snap One’s increased price.  

Volkmann predicts that the supply-side problems facing Snap One will disappear by 2022. Snap One will be better positioned to realize long-term operating leverage and higher margins.  

Volkmann has been ranked as the No.1 analyst out of more that 7,000. TipRanks ranked Volkmann No. He has been successful with his ratings 74% of all the times. Each one has returned an average return of 30.1%  

Zynga  

Zynga (ZNGAIt has succeeded in focusing on the acquisition of new users, and it is now moving forward with new games. Social game developer, recently posted its third quarter revenue and bookings record. This was due to its increased ability to publish new games and scale its operations.  

Brian Fitzgerald from Wells Fargo identified significant upside to the market’s tattered valuation. He wrote that his firm had prioritized the creation of new content, and different game play modes. This strategy will drive user acquisition, retention and bring the company back into mobile gaming’s past glory days.  

Fitzgerald gave the stock a Buy rating and set a $13 price target.  

According to the analyst, Zygna is now looking forward to the future with a heightened interest for its hyper-casual gaming segments. The fastest-growing genre in gaming is hyper-casual, which is known for its simple and addictive gameplay. 

It has successfully managed operating costs. This, combined with its advertising growth are resulting in “better-than-expected operating leverage.”  

TipRanks calculates Fitzgerald as No. Out of over 7,000 professional analysts, Fitzgerald is ranked 61. He has a 72% accuracy rate in stock picking and an average return of 57.1%.  

Nio  

Nio (NIORecently, ), released the third-quarter results as mixed. While the revenue estimate beat it, fourth quarter guidance by the company was less conservative than expected. Although the current challenges facing the automaker include supply chain restrictions and companywide restructuring of manufacturing, Vijay Rakesh from Mizuho Securities thinks these problems will not affect the long-term.  

Rakesh believes that the stock’s long-term prospects are bright. Rakesh said that China’s electric vehicle market is expanding to the point where it could be considered an “inflection” in its adoption.  

Rakesh gave the stock a Buy rating and set a $67 price target.  

NIO recently extended its reach to Norway and China beyond China’s borders. This solidifies its entry to the next market. It was important for NIO to achieve the European introduction, which saw it move on to the U.S.

Rakesh felt encouraged by Nio’s advances in battery tech which might allow for lower production costs. He believes the company’s assisted driver systems will act as a catalyst in growth.  

TipRanks rated Rakesh No. Out of more than 7,000 financial analysts, Rakesh is rated as No. He has had success with his stocks ratings 79% of time. They have also returned an average return of 53.7% for each rating.  

monday.com 

Cloud-based enterprise management firms like monday.com have had a phenomenal year and half (MNDY). This software company benefited from clear digital communication between companies. It appears that its momentum is not slowing down.  

Bhavan Suri of William Blair & Company wrote that MNDYIt has “massively beaten consensus estimates across key metrics” and is poised to continue its upward trajectory. The company boasts “best in class” sales productivity, and is encouraging market adoption.  

Suri gave the stock a Buy rating, but did not specify a target price.  

According to the analyst, monday.com’s revenue exceeded its investments in research and sales so it now has a strong balance sheet. As long as the company continues its strong business performance, he expects the company to win more market share.  

The recent volatility in share prices is likely to be due to uncertainties leading up to the earnings call and an expiration in a lockup. Suri indicated that the share price declines are not due to the company’s fundamentally sound business. However, this offers long-term investors an opportunity to buy or enter.  

TipRanks ranks Suri No. Suri ranks No. 71 of over 7,000 professional analysts. He has a 73% accuracy rate in stock picking and an average return of 66.1% for his ratings.

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