Despite the lingering coronavirus pandemic, U.S. stocks continue their march higher. Russia’s vaccine development announcement helped push major indices to near-record levels. Investors are also bullish on renewed efforts from the U.S. government to potentially push through another stimulus package. However, Wall Street analysts are not bullish on all areas of the stock market.
Growth stocks have continued to outperform value, even amidst the volatile seen thus far in 2020. In fact, growth stocks have outperformed value by the widest margin seen in decades. The Wall Street Journal notes that investors have been particularly interested and attracted to growth companies through the current economic downturn due to their potential to deliver “faster-than-average profit growth.”
As growth looks poised to continue its outperformance, here are two stocks that have strong support from Wall Street analysts:
Mohawk Group Holdings, Inc. (MWK)
On July 30th, Mohawk Group Holdings, Inc. (NASDAQ: MWK) reported second quarter 2020 results, which topped Wall Street estimates both on the top and bottom line. Not only did Mohawk Group see net revenues soar 97% to $59.8 million, but they also reported positive adjusted EBITDA of $3.4 million. As a result of the strong quarter, management now estimates positive adjusted EBITDA for Full Year 2020.
After Mohawk Group’s strong Q2 2020 results, the four analysts covering the stock made sweeping upgrades across the board. As a consensus, Wall Street analysts now rates the company a “strong buy,” with an average upside of $15.00 or 105.48% from current levels.
Five-star analyst, Tom Forte of D.A. Davidson, estimates a $15.00 price target. Roth Capital’s Matt Koranda sees the greatest upside for Mohawk Group, after setting price target at $16.00 per share or 119.18% from its current price.
Yaniv Sarig, Co-Founder and Chief Executive Officer, commented, “I am proud to report Mohawk’s first quarter of Adjusted EBITDA profitability. Crossing over to Adjusted EBITDA profitability is an important milestone that demonstrates the power of our platform business model. Our strong second quarter results reflect our continued ability to leverage our tech enabled business model as well as the agile and innovative culture we have created. We are excited to continue to invest in our software platform to drive further efficiency through automation. The retail and consumer world is moving to online at a faster pace and we are well positioned to capitalize on this shift in the long term.”
HyreCar, Inc. (HYRE)
HyreCar, Inc. (NASDAQ: HYRE) describes itself as a carsharing marketplace catering towards ridesharing and delivery services. Through its proprietary tech platform, HyreCar is establishing itself as a formidable player in the Transportation as a Service (TaaS) market. Think Airbnb, except for vehicles.
In its most recent earnings announcement, HyreCar saw revenues grow 65% year-over-year to $5.8 million, during the first quarter of 2020. While EPS came in at a loss of $0.25 per share, it was still an improvement from HyreCar’s Q4 EPS loss of $0.31. The company is scheduled to release Q2 2020 earnings on August 13th.
Wall Street analysts have a consensus “strong buy” rating on HyreCar, with an average price target of $5.94 or almost 62% from its current price. Five-star analysts Michael Grondahl of Northland Securities and Jack Vander Aarde of Maxim Group, have price targets of $6.50 and $7.00 respectively.
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