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Summary
- As the world continues to change in the face of rising COVID-19 cases and ramped-up vaccine campaigns, investors are often seeking comments from market experts regarding stock performances.
- This tech company registered a 26 per cent year-over-year (YoY) increase in its quarterly revenue of US$ 3.91 billion.
- This automotive supplier saw its stocks rise by over 84 per cent in the past one year.
Around this time in 2020, stock markets around the globe were plunging to record lows in the wake of the coronavirus pandemic. In the span of the past one year, investors have seen a lot of changes, starting from big brand companies collapsing under operational and financial crisis to relatively smaller firms rising to prominence due to the rise in their demand amid the pandemic.
As the world continues to change in the face of rising COVID-19 cases and ramped-up vaccine campaigns, investors are often seeking comments from market experts regarding stock performances.
On that note, here are the profiles of two stocks that, according to analysts at financial services firm JPMorgan, could possibly see a 30 per cent increase from their current levels.
1. Adobe Inc (NASDAQ: ADBE, ADBE:US)
Adobe Inc is the creator behind software such as the PDF format, Photoshop, Illustrator, InDesign, etc. The tech company posted its latest financial results on Tuesday, March 23, and it reflected a 26 per cent year-over-year (YoY) growth in its quarterly revenue of US$ 3.91 billion.
Adobe’s diluted earnings per share (EPS) climbed 38 per cent YoY to US$ 3.14 on a non-GAAP basis in the first quarter of fiscal year 2021. Its non-GAAP net income amounted to US$ 1.52 billion in the latest fiscal quarter ending 5 March 2021.
Adobe shares have registered a growth of over 47 per cent in the past one year. While the stock is down nearly 10 per cent on a year-to-date (YTD) level, it has climbed by about three per cent in the past week (March 18-25).
Adobe stock presently records a price-to-earnings (P/E) ratio of 43.5 and return on equity (ROE) of 46.24 per cent, as per the TMX data.
1-year chart of Adobe’s stock performance (Source: EODHD/Others/Thomson Reuters)
2. BorgWarner Inc (NYSE:BWA, BWA:US)
BorgWarner Inc, an automotive supplier headquartered in Michigan, saw its stocks rise by over 84 per cent in the past one year and by about 13 per cent YTD. The stock hit a fresh 52-week high of US$ 50.59 earlier this month (March 15).
It currently holds a 30-day average share trading volume of nearly three million, while its P/E ratio stands at 18.9 and its ROE is 8.98 per cent, as per the TMX data.
1-year chart of BorgWarner’s stock performance (Source: EODHD/Others/Thomson Reuters)
BorgWarner saw its US GAAP net sales surge by 53.4 per cent YoY to US$ 3,926 million in the fourth quarter of 2020. Its net income for the latest quarter ending 31 December 2020 stood at US$ 358 million, up from that of US$ 220 million in Q4 2019.
On an annual level, however, BorgWarner’s 2020 net income dropped to US$ 500 million from US$ 746 million in 2019. Its 2020 annual net sales, at US$ 10,165 million, was relatively flat when compared to US$ 10,168 million in 2019.
BorgWarner announced on Thursday, March 25, that will be releasing its financials for the first quarter of 2021 on May 5.
