Five-star analyst Jason Seidl recently recommended these 2 stocks
Inflation’s inability to subside in May led to more aggressive repression by the Fed. For the common man, this basically translates into higher prices for goods and services as well as a higher cost of borrowing for a house, car or any essential expense. Not to mention the fear that the economy could slide into a recession, which comes with another set of problems.
Naturally, investors are hesitant to pick the right stocks that can guarantee the safety of their money. Based on this sentiment, many sell their investments completely. However, the key is to be open to the possibility of the market falling further, driving down investors’ net worth and looking past long-term turbulence.
In this regard, expert opinion and activities are useful to better understand which stocks present growth opportunities and what value they should yield.
Bearing this in mind, we regularly highlight the expertise and recommendations of the world’s leading experts, as we believe this will facilitate the investment decision-making process for investors at this stage.
In today’s Expert Spotlight article, we pay tribute to one of Wall Street’s greatest minds, whose stock recommendations and analysis helped investors make successful decisions. We will also discuss two of his recently recommended actions.
Expert of the day: Jason Seidl
Our expert of the day, Jason Seidl, is the Managing Director of Industrials – Airfreight & Surface Transportation at Cowen & Co. (COW), where he has worked for about nine years. Over more than two decades of his career, he became known for his successful stock ratings and accurate earnings-per-share projections.
In 2020, Seidl received the TipRanks Analyst Award, an achievement that is proudly mentioned in his analyst profile on the Cowen & Co website.
This five-star analyst is ranked #11 out of 7,890 analysts tracked on TipRanks and #21 out of 20,027 experts in the TipRanks universe. This rating was generated under a complex star-rating system that takes into account an expert’s success rate, as well as the average returns generated per trade or rating and statistical significance, which increases with each rating .
The analyst has a success rate of 69%, with an average return of 23.8% over the past year. Additionally, its recommendations have generated an alpha of 11.7% on the S&P 500 index and 14.2% on the performance of the services sector over the past year.
Seidl’s most accurate stock recommendation was Daseke (DSKE) in the year between May 7, 2020 and May 7, 2021, in which the stock had gained 327.7%.
Over the past 30 days, Seidl has completed five stock ratings. Let’s take a look at two of them.
Illinois-based transportation management company Hub Group was the latest stock noted by Seidl. Hub’s bright green containers have been commonplace on US roads since 1971. Since then, the company has expanded its offering by making various acquisitions and investments in technology.
Supply chain disruptions have wreaked havoc across industries. However, strong freight demand and innovative supply chain solutions helped the company stay afloat and even perform better than expected in the first quarter. Moreover, he continues to navigate headwinds and has even raised his estimates for his 2022 performance.
In addition, its solid balance sheet is another point to highlight. As of March 31, the company had net cash of approximately $32 million (measured as cash and cash equivalents less long-term debt). This strength will help the company maintain a strong budget for technology and shipping innovations and other growth strategies.
Wall Street is cautiously bullish on Hub with a Moderate Buy consensus rating, based on 10 buys and six taken over the past three months. The Hub Group’s average price target of $116.07 implies an upside potential of 73.2%.
Seidl maintained a buy rating on the stock. A look at his rating history for this stock will give us all the more confidence in his convictions. Of the 18 times Seidl reviewed Hub, 14 passed, and on each review, the title generated an average profit of 15.3%.
Freight company XPO Logistics has lost around 40% of its value so far this year, succumbing to macroeconomic headwinds including supply chain disruptions. However, it charts a solid path to recovery and growth.
It recently entered into a high profile partnership with Google Cloud to build a more efficient supply chain. Additionally, steering its business in a new direction, XPO recently filed to spin off its light asset brokerage transportation platform with the goal of creating two separate publicly traded companies. These companies will have tremendous growth prospects in North America.
Notably, divesting some of its assets to other companies or turning them into separate public companies is nothing new for XPO. Last year, the company spun off its contract logistics business into a separate, publicly traded company called GXO Logistics (GXO). Additionally, in March of this year, it divested its technology-focused brokerage transportation services from its less-than-truckload (LTL) business.
These changes allow the company to better focus on its various units and save the costs of running a business that does not create much value.
Following the March announcement, Seidle commented, “We like the announcement and see a core LTL game offering multiple expansion potential for the business while using asset sales as a way to quickly reduce the debt burden.”
Seidl has maintained its bullish stance on XPO stock for the past two years. He was 58% successful with his XPO ratings, generating a 19.9% profit on each rating.
Wall Street is also bullish on the stock, with a strong buy consensus rating based on 15 buys and one hold. XPO Logistics’ average price target of $81.94 implies 77.2% upside potential.
Supply chain issues are here to stay – likely at least for a few more months before they are effectively mitigated. However, through their efforts, both HUBG and XPO are expected to contribute significantly to alleviating the pressures that have harmed the industries.
Additionally, given Seidl’s track record, his strong convictions can be of great help when considering investment decisions in these uncertain times.