After July’s exceptional surge, the markets steadied during early August with the S&P 500 up by a third of a precent over the past week. Now investors will be keen to find out if the rally has legs.
Stifel’s chief equity strategist Barry Bannister thinks it does and believes the S&P 500 is on course to reach 4,400 during the year’s second half, explaining that the sell-off in 1H22 is “still being reversed.” The strategist also thinks the S&P 500’s “equity risk premium” now suggests a mid-point price target of 4,400.
If the uptick is set to continue, then fresh opportunities will obviously open up for investors.
With this in mind, we delved into the TipRanks platform and homed in on 3 names which for various reasons the Street’s experts believe are primed to push ahead over the coming months. All three fit a certain profile; rated as Strong Buys by the analyst consensus and set to potentially double or more in the year ahead. Let’s take a closer look at why they are drawing such optimistic outlooks.
Lulu’s Fashion Lounge Holdings (LVLU)
We’ll start with an e-commerce company in the consumer discretionary spending realm. Lulu’s Fashion Lounge is an online, ‘digitally native,’ one-stop shop for women’s fashion. The company offers a range of on-trend and high-quality fashions, including dresses, blouses, shirts, jackets, coats, skirts, pants, footwear, and accessories, in all shapes and sizes. Lulu’s products are available worldwide, solely through the website.
The company traces its history back to 1996, but went public less than 9 months ago, in November of last year. The IPO raised $92 million, short of the hoped-for $100 million, and the stock has seen high volatility since. It closed its first day’s trading just over $13, peaked above $19 in June of this year, and is currently down 56% from its first closing price.
During this time, Lulu’s has reported strong revenues, with the top line hitting $111.9 million in the first quarter of fiscal 2022, which ended on April 3 of this year. This total was up 62% year-over-year, and…