In a new report, analysts at Argus took an in-depth look at four growth stocks that are on their radar and provided an update on their outlook for the stocks.
General Electric Co GE 0.22%
Analysts highlight GE’s shift to a more conservative, cost-efficient business strategy.
A key piece of this strategy is the company’s plan to divest most of GE Capital and focus more of the core industrial aspects of the company’s business, including power generation and commercial aviation production.
Analysts believe that GE’s backlog of booked business will provide higher margins in coming years and believe that the stock is “attractively priced” at current levels.
Argus has a Buy rating on GE and a $31 target price on GE’s stock.
Honeywell International Inc HON 0.8%
Analysts are calling for low double-digit earnings growth from Honeywell over the next five years.
Analysts like Honeywell’s relatively low exposure to U.S. defense spending and its strong presence in the aerospace market.
Argus has a Buy rating on Honeywell and a $115 target on the stock.
Seagate Technology PLC STX 0.89%
Despite a challenging PC environment, analysts like the company’s disciplined business approach.
Analysts point out that the stock is presently undervalued based on the company’s cash flow growth potential.
Argus has a Buy rating on Seagate and a $70 target on the stock.
SunTrust Banks Inc STI 1.23%
Analysts like the cost-cutting measures they have seen from SunTrust and believe that they will eventually pay off for shareholders when interest rates start to rise.
In the meantime, revenue growth will be hard to come by and improvements in lending growth will continue to be offset by low yields.
Argus has a Hold rating on SunTrust, though analysts added that “our long-term rating, however, is BUY.”
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