What can it all mean when mega-cap stocks and US Treasuries start behaving as if they were penny stocks?
Tavis McCourt, Institutional Equity Strategist at Raymond James, has an idea about that. “We would argue it shows a complete lack of conviction by investors in certain business models/earnings power, and the state of the economy overall,” McCourt wrote.
McCourt is talking of the spell of extreme volatility the markets are currently going through, noting that investors can’t make up their minds whether we will see a multi-year economic recovery or whether we will soon enter a “Fed induced” recession.
Investor psychology is changing on a weekly – or even daily – basis. As such holding on to your investment convictions has never been harder – or more painful. That said, McCourt adds that sticking to your guns is essential in “driving outperformance.”
Against this backdrop, the analysts at Raymond James have been seeking out stocks that are poised to push ahead in the current environment. They have pinpointed two which they see generating returns of at least 60% this year.
We ran them through the TipRanks database to see what the rest of the Street thinks; it appears the analyst consensus rates both as Strong Buys and sees plenty of upside too. Let’s take a closer look.
ADS-TEC Energy (ADSE)
We’ll start in the energy sector, where ADS-TEC is a leader in decentralized battery-buffered power systems. The company designs, manufactures, and markets a range of battery management systems, power inverters, thermal management units, and control systems. The ADS-TEC platforms always include a ‘smart’ battery storage system, allowing for flexible absorption and release of energy, making the units highly adaptable. The company’s products have found uses in industry, commerce, mobility, and infrastructure applications.
A key element in the ADS-TEC product portfolio is the fast charging technology, allowing for rapid charging of mobility battery solutions, even when the power grid performance is low. The company’s technology permits ultra-fast charging…