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Take Advantage of the Dip: 3 Top Stocks To Consider

Barchart - Fri Sep 16, 8:27AM CDT
Charts, tickers, traders - shutterstock_1033516756

What a difference a week makes. Last Saturday I published an article, Don't Believe This Rally Will Last? Consider These 5 Inverse ETFs, in which I highlighted how much the stock market had rallied the 4 days after Labor Day.

Flash forward to this week, and the market is singing a different tune. In just the past three days the Dow Jones ($DOWI) (DIA) has slid 4.3%, the S&P 500 ($SPX) (SPY) has fallen more than 5%, and the NASDAQ 100 ($IUXX) (QQQ) has dropped 5.8%. 

This downturn is a direct result of August’s consumer price index (CPI) report, released on Tuesday, which showed a higher-than-expected reading for inflation. With inflation on a year-over-year basis at 8.3%, it is expected the Federal Reserve will continue with its aggressive rate hikes, thus putting pressure on the economy.

Though many analysts and investment firms remain bearish on the overall market, there are certain stocks that are expected to thrive in the near-term. Traders and investors just need to know where to find them. 

With that in mind, today I’m going to highlight 3 of these stocks: Sensus Healthcare (SRTS), International Seaways (INSW), and Golar Lng (GLNG). Each of these companies are not only rated Strong Buy by Wall Street analysts but are also ranked high on Barchart’s Top 100 Stocks To Buy list. This list identifies stocks with the greatest weighted alpha, which is a measure of how much a stock has risen or fallen over a one-year period, with more weight placed on recent activity.

Sensus Healthcare (SRTS)

Sensus Healthcare (SRTS) is a medical device company, which provides highly effective non-surgical skin cancer treatment for skin cancers and keloids. The company was founded in 2010 and has a market cap of $241 million. 

In the past 3 months, SRTS is trading up 79% and year-to-date (YTD) it’s trading 97% higher. That’s very impressive, especially when you compare it to the US Medical Devices Ishares ETF (IHI) which is down more than 20% in 2022.

The reason this stock is outperforming is because over the last four quarters, the company has surpassed consensus EPS estimates four times. In its most recent quarterly earnings report, released on August 4th, the company reported earnings per share (EPS) of $0.21, compared to the $0.18 estimates.  Sensus posted revenues of $12.08 million which also beat the expectations of $10.28 million.

Earnings for the current quarter are expected to be released on November 2nd. Analysts expect the company to report EPS of $0.12 and revenues of $9.54 million.

So it’s no surprise analysts remain bullish on SRTS, giving the stock a Strong Buy and an average price target which is 18.6% higher than where it’s currently trading.

Sensus is ranked #4 on Barchart’s Top 100 Stocks To Buy.  

International Seaways (INSW)

Based in New York, NY, International Seaways (INSW) is a tanker company that provides energy transportation services for crude oil and petroleum products. It was founded in 1999 and has a market cap of $1.69 billion.

Even as oil prices have fallen in the past 3 months, INSW is up more than 50%. YTD the stock has rallied more than 130%, making it the best performing stock in the Marine Shipping industry in 2022.

In June the company declared a cash dividend of $0.12 per share for Q2, which was an increase of $0.06 per share to $0.12. Currently, INSW has a yield of 1.42%.

INSW has topped consensus revenue estimates three times over the last four quarters. In its most recent earnings release, reported on August 9th, the company announced $1.43 per share, which beat the $1.22 estimate, and revenue of $188.2 million. Expectations are for the company to report $1.95 EPS and $220.88 million in revenue when INSW next releases quarterly earnings on November 7th.

Less than 2 weeks ago on September 6th, Jefferies Financial Group raised its price target from $35.00 to $45.00. That is a 32.7% increase from its current price.

INSW is ranked #17 on Barchart’s Top 100 Stocks To Buy.  

Golar Lng (GLNG)

Golar Lng (GLNG) is a company that designs, builds, owns, and operates marine infrastructure that turns natural gas into LNG and LNG back into natural gas. The company was founded in 2001 and is headquartered in Bermuda.

Natural gas prices have surged more than 120% YTD due to hotter than normal weather and the war in Ukraine. As a result, companies that operate within the industry have been benefiting. 

So it’s no surprise that GLNG is up over 16% in the past 3 months and the stock has surged more than 120% YTD.

There is also concern that this winter natural gas prices could continue to rise. The CEO of Chevron, Mike Wirth said in an interview with CNN that, "there's certainly a risk that costs will go up" this winter.

Before its last earnings report, released on August 11th, Analysts were predicting GLNG would earn $0.22 for the quarter and $81.1 million in revenue. However, GLNG handily beat these estimates, reporting $0.29 and 86.1 million.

Analysts expect GLNG to report EPS of $0.23 and $110.81 million in revenue when it delivers its next earnings report on November 7th.

The average price target for GLNG is $32.88, which is more than 19% higher than where the stock is currently trading. And just 11 days ago, B. Riley Financial raised its price target from $33.50 to $35.50.
GLNG is ranked #21 on Barchart’s Top 100 Stocks To Buy.  

Provided Content: Content provided by Barchart. The Globe and Mail was not involved, and material was not reviewed prior to publication.