TipRanks smart score helps investors invest with confidence in a challenging investment environment. This quantitative scoring system analyzes stocks on eight key factors and assigns a smart score ranging from 1 to 10. A higher score suggests the stock is more likely to outperform broader market averages.
It should be mentioned that stocks with a maximum smart score (“Perfect 10”) significantly outperformed the S&P 500 index (SPX). These stocks have delivered a total return of 173% since 2016 and generated a positive alpha of 61.9%.
Using the Smart Score tool, let’s take a look at two stocks that recently received a “Perfect 10” Smart Score.
Tractor Supply Company is a rural lifestyle retailer that sells a wide range of products needed for farming, home improvement, pet care and garden maintenance.
It performed well despite macro headwinds, supply issues and difficult year-over-year comparisons. Recently, the company announced that it was well positioned to deliver exceptional financial results in the second quarter.
Tractor Supply CEO Hal Lawton said: “The strength of our needs-based, demand-driven business continues as the team effectively manages inventory levels, inflationary costs and line pressures. global supply.
Wells Fargo analyst Zachary Fadem is impressed with TSCO’s ability to handle macro and supply issues well. Fadem added that TSCO is among Well Fargo’s “Best Ideas Hardlines today, with commodity-like demand, limited downside margin, and potential for upside revision via corporate initiatives.” company”.
Including Fadem, TSCO stock has 11 buy recommendations. Additionally, it received four sell ratings. Additionally, analysts’ average price target of $242.27 indicates upside potential of 19.1% over the next 12 months. With analysts, TSCO stock has positive indicators from hedge funds and bloggers. Overall, the TSCO stock has a maximum smart score of 10.
Global cybersecurity company CrowdStrike is enjoying strong demand. Its annual recurring revenue, customer acquisitions and retention rate remain high.
During the first quarter conference call, its chief financial officer, Burt Podbere, said CRWD’s raw retention rates were at an all-time high. Podbere added that “the number of customers adopting six or more modules and seven or more modules has more than doubled year over year.”
With continued business momentum, CrowdStrike raised its FY23 revenue and earnings outlook.
Building on CrowdStrike’s strong performance, Needham analyst Alex Henderson said, “Crowd stands out from other high-growth names because of its mix of high growth and substantial leverage, as well as high margins. healthy operating and cash flow.”
He added that macro softness could act as a tailwind for CrowdStrike as customers consolidate vendors.
Henderson is optimistic about CRWD’s prospects. Including Henderson, CRWD stock received 22 Buy recommendations for a Strong Buy consensus rating. Additionally, analysts’ average price target of $234.55 indicates upside potential of 23.3% over the next 12 months. Besides analysts, hedge funds and bloggers are also bullish on CRWD stocks. It sports a maximum Smart Score of 10.
TSCO and CRWD’s ability to perform well in a tough business environment and a maximum smart score on TipRanks’ quantitative rating system indicate that these companies have a greater likelihood of beating broader market averages.