The POWR Ratings have been calculated, highlighting stocks worthy of an upgrade. The market bounced back toward the end of last week after a series of down days but has been mixed since. This might be a great time to scoop up stocks upgraded in the POWR Ratings as the economy is about to reopen fully.
All in all, more than a dozen stocks were recently upgraded. They are showing strength across the POWR components and are poised to move higher.
The following three upgrades are worth a closer look: Tempur Sealy International (TPX), Shuttershock (SSTK), and Computer Programs & Systems (CPSI).
Tempur Sealy International (TPX)
TPX develops, makes, and markets bedding products, mainly in North America. TPX makes everything from mattresses to pillows, adjustable bases, and other products used for sleep. Examples of TPX's brands include Sealy, Tempur, Tempur-Pedic, Stearns & Foster, and Optimum. More TPX products will likely be sold as America's housing boom continues.
TPX has an overall grade of A, which translates into a Strong Buy rating in the POWR Ratings system. The stock has a grade of A in the Growth component and Bs in the Quality, Momentum, and Sentiment components. Click here to find out how TPX fares in the remainder of the component grades, such as Value and Stability.
Of the 64 publicly traded companies in the Home Improvement & Goods industry, TPX is ranked in the top 10, slotting in at #9. You can find other top stocks in this industry by clicking here.
Analysts have established an average target price of $46.67 for TPX. If the stock moves to this level, it will have popped by 30%. Of the 11 analysts who have issued TPX recommendations, three consider it a Strong Buy, and four consider it a Buy. TPX has a fairly low forward P/E ratio of 14.10.
Shuttershock (SSTK)
SSTK has emerged as one of the top worldwide marketplaces for digital images. SSTK makes it easy to purchase licensed photos, illustrations, vectors, and even videos. Search SSTK's library for yourself, and you are sure to find something artful to feature on your website or other materials.
SSTK has an overall grade of A or a Strong Buy rating in the POWR Ratings system. It has grades of B in the Quality, Value, and Sentiment components. Click here to find out how SSTK fares in Momentum, Stability, and Growth. Of the 43 publicly traded companies in the Internet - Services industry, SSTK is ranked third. You can find other top-ranked stocks in this industry by clicking here.
Analysts have set a high target price of $85 for SSTK, which indicates a potential 6% upside. Though SSTK has a fairly high forward P/E ratio of 30.26, this figure is not too bad considering SSTK operates in the Internet industry, which typically has elevated P/E ratios.
Computer Programs & Systems (CPSI)
CPSI provides high-tech services for those in the healthcare space. CPSI has excelled in this niche for nearly three decades. In short, CPSI's value offering is providing a comprehensive electronic medical records system that is single-source.
CPSI is a POWR Ratings stud with an overall grade of A, translating into a Strong Buy rating in the POWR Ratings system. It has a grade of B in the Quality, Value, Stability, and Growth components. If you are curious as to how CPSI grades in the Momentum and Sentiment components, you can find out by clicking here.
Of the 80 stocks in the Medical - Services industry, CPSI is ranked second. Investors who would like to find other top-ranked stocks in this industry, click here.
Most analysts anticipate CPSI to go higher, setting an average target price of $34.67. This indicates a potential upside under 15%. In fact, one analyst has set a $40 target price for the stock. Of the seven analysts who have issued CPSI recommendations, two rate it a Strong Buy and rates it a Buy.
CPSI has a forward P/E ratio of 13.34, a modest figure considering it operates in the tech space and is trading a mere $4 below its 52-week high of $36.37.
TPX shares were trading at $37.63 per share on Tuesday morning, up $0.09 (+0.24%). Year-to-date, TPX has gained 39.91%, versus a 11.53% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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