Home Stock list These 2 stocks send a bullish signal

These 2 stocks send a bullish signal

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Making the right decision in the investment market is not an easy task. Investors must wade through a sea of ​​often conflicting data and locate the kernels of facts that can point to a stock’s likely future. Finding some semblance of meaning and pattern in the jumble of raw information is the necessary prerequisite for success. This is where the TipRanks Smart Score Between.

Using a set of proprietary algorithms, the Smart Score collects a range of data for each stock and sorts it based on 8 factors known to influence the stock price. The result is a single, distilled score, on a scale of 1 to 10, that can tell an investor at a glance a stock’s overall health. And a peek behind the score is easy to do and adds context to a title’s performance.

So let’s start early and look “under the hood” at 2 stocks that are sending bullish signals to investors – with their “Perfect 10” Smart Scores.

Arhaus, Inc. (ARHS)

The first stock we’ll look at is Arhaus, an Ohio-based furniture company that offers its products in 80 showrooms across the United States. The company produces and markets a wide range of home and patio furniture, including complete sets for home offices, bedrooms, living rooms and dining rooms. Arhaus is proud to work with small artisans around the world on the supply of its products.

While Arhaus maintains a large network of physical locations, the company also maintains a strong e-commerce segment. Overall, Arhaus is working hard on its preferred mode of direct-to-consumer sales. With a long-standing reputation for customer-centric service, innovative product designs and responsible sourcing, the company has achieved great success in this preferred business model.

This success can be seen in the latest quarterly financial statements, for 2Q22. The report showed revenue grew 66% year over year to $306 million; this was a significant part of the 55.5% six-month gain of the year; from January 1 to June 30, Arhaus grossed $553 million at the top. The company’s net income was $37 million for the quarter, or 28 cents per share, up 12% year-on-year.

Peter Keith, 5-Star Analyst at Piper Sandler, outlines several reasons why Arhaus should continue to generate strong returns for investors, writing, “We believe ARHS continues to perform at a strong level with (1) the introduction of new products; (2) Improved marketing with improved return on ad spend; & (3) Improved Website. Additionally, we believe that ARHS’ value proposition has never been stronger, given that 50% of its sales come from the United States, allowing for fewer price increases compared to the competition. »

Along with these comments, Keith gives this stock an overweight (i.e. buy) rating. His price target, $12, suggests the ARHS is up 34% YOY. (To see Keith’s track record, Click here)

Wall Street finds itself broadly in agreement with the bullish view here – of the 6 recent analyst reviews recorded, 5 are Buy vs. just 1 Hold, for a strong Buy consensus rating. The stock is selling for $8.92 and its average price target of $11 implies a 23% year-over-year gain. (See ARHS stock analysis on TipRanks)

The Chef’s Warehouse (CHIEF)

Next up is a company that lives in the world of specialized food distribution. Chef’s Warehouse has operations and locations in major metropolitan areas in the United States and Canada; the company began 30 years ago as a source and distributor of food products for high-end chefs, and today serves the finest restaurants, hotels, caterers and gourmet retailers across North America.

This service-oriented company has benefited greatly from the end of the COVID restriction and the return to a more normal business climate. The result can be seen in the quarterly earnings trend: consistent year-over-year gains over the past two years.

In 2Q22, the most recent quarter, both CHEF’s top and bottom results exceeded industry forecasts. Revenue reached $648.1 million, up 53% year-over-year and about 8% above estimates. In the end, earnings of 51 cents per share beat the forecast by 35 cents – and were nearly 13 times higher than the year-ago quarter’s 4 cents.

Even better, the company raised its full-year financial forecast, forecasting between $2.375 billion and $2.475 billion in total sales for 2022 (from $2.13 billion to $2.23 billion), and gross profit between $553 million and $576 million (vs. $500 million). and $524 million).

BTIG’s 5-star analyst Peter Saleh rates all of this and can’t help but rate this company as a buy. The $46 price target he assigns implies room for growth of around 37% over the coming year. (To see Saleh’s record, Click here)

Supporting his position, Saleh writes: “We believe that the current [share] the price does not accurately reflect the strength of sales and the trajectory of the business… We believe the outlook may still prove somewhat conservative as trade events and travel pick up as we move into the fall . This quarter’s rise puts us at the high end of the new guidance range, so while we’ve been impressed with the pace of sales growth and improving margins, we’re not convinced this is the end. »

Overall, the CHEF sock has garnered 4 recent reviews from analysts, and they are all positive, giving it a unanimous consensus Strong Buy rating. CHEF shares are currently priced at $33.78 and their average price target of $47.75 suggests 41% upside potential over 12 months. (See CHEF stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the analysts featured. The Content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.