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Snapchat co-founders Bobby Murphy and Evan Spiegel at the New York Stock Exchange (NYSE), March 2, 2017 in New York City.
A few well-known stocks — and some not quite so well known — are just a few of the names analysts say have "upside" potential. They see companies like Snap, Estee Lauder, and Pinnacle West as just a few worth looking at as earnings season rolls on.
CNBC did a deep dive through company research to find analysts from different industries singling out stocks in their coverage universes.
Popular tech and social media platform Snap caught analyst's eyes this week. "We remain convinced that the SNAP story is similar to TWTR in 2017 whereby the turnaround should materialize into meaningful market cap appreciation as investors see a path towards growing the user base and getting back to innovation following a rough 2018," Barclays analyst Ross Sandler said.
They liked how the stock price has moved up from $5 to $12, though shares are down Friday over 3%.
"We still see upside from current levels," he said.
Makeup and skincare giant Estee Lauder is one company analysts at Oppenheimer are staying bullish on.
"We continue to see an attractive top and bottom line algorithm that stands out in the consumer product goods space with street estimates leaving room for upside in our view," they said.
The stock is up 1.73% this week to $170.42.
Earlier this week Bank of America upgraded Pinnacle West to buy based on the company's, "upside potential." Analysts noted that with regulatory concerns subsiding, the stock had an "attractive valuation." The utility holding company also declared a dividend on Wednesday ahead of its upcoming quarterly results.
"We expect shares to outperform peers."
Pinnacle West is up almost 11% this year.
Here's what analysts are saying about stocks with upside:
Barclays- Snap, Overweight rating
"We remain convinced that the SNAP story is similar to TWTR in 2017 whereby the turn-around should materialize into meaningful market cap appreciation as investors see a path towards growing the user base and getting back to innovation following a rough 2018. The move from $5 to $12 has priced in a good amount of our optimism around this thesis, but we still see upside from current levels. Expectations are now running high into 1Q, but we think the company continues to deliver."
Oppenheimer- Estee Lauder, Outperform rating & top pick
"We continue to look very favorably upon EL's longer term prospects. We believe the company's positioning to the global prestige beauty category, a strong management team under the leadership of CEO Fabrizio Freda, and consistent track record on the M&A front position the company to continue gaining market share. Attractive beauty category fundamentals appear poised to continue and we continue to see an attractive top and bottom line algorithm that stands out in the CPG space with Street estimates leaving room for upside in our view."
Barclays- Barrick Gold, Overweight rating
"Staying positive on North America metals and mining. Our global macro team sees an unexciting expansion ahead, with two years of near-trend growth and low inflation. While this is uninspiring for gold, the potential for higher recession probabilities still could drive demand for safe assets. Attempted politicization of the Fed can't hurt the case for gold either. Meanwhile copper should benefit from a sequential acceleration in China during Q2/19. We still see scope for positive performance in the North American mining sector and see several names with significant upside to target and catalyst potential including TECK, GOLD, and NEM."
Bank of America- Pinnacle West, Buy rating
"We see upside potential and attractive valuation justifying a Buy, as lingering regulatory risk begins to subside and we expect shares to outperform peers as consensus continues to tick higher on the capex update. We see further upside risk on rerating potential of the 0.5x premium attributed with a final resolution of the rate review through the ACC staff report due by May 3rd. We lower our PO to $105 (from $106) with a MTM of peer multiple to 18.1x (from 18.3x) off unchanged estimates."
KeyBanc- PTC, Overweight rating
"Execution of remaining model transition and increasing contributions from Rockwell and ANSYS partnerships present upside potential. We expect to see ramping improvement in operating margins over the next three years, and accelerating revenue beginning in FY20. PTC trades at ~19x our FY21 FCF/share target. As we enter FY20/FY21, we could see multiple expansion to 24-25x."
UBS- Exact Sciences, Buy rating
"We analyzed UBS Evidence Lab's survey of 150 doctors to gain fresh insight towards the outlook for Cologuard. We view the survey results as quite positive on a number of fronts: First, the level of testing per doctor in the survey is materially greater than what's occurring in the market, reflecting significant upside potential. Next, looking out further to 2023, the expected market share for Cologuard is >50% ahead of what's implied in our forecasts. Finally the feedback regarding the 45-49 cohort, electronic ordering and marketing impact were also positive. Net, despite our forecasts already being above consensus, the survey provides renewed support for additional upside. As a result, we are bumping our test frequency (and related revenue) assumptions for 2020-2023 and raising our PT to $115 as a result."
