3 New Strong Buy Ratings from Top-Rated Analysts: 12/19/2024

Analysts are drooling over McKesson Corp. (NYSE: MCK), Klaviyo Inc. (NYSE: KVYO), and Gambling.com (NASDAQ: GAMB). Keep reading to find out why.

1- Klaviyo Inc. (NYSE: KVYO)

What would inboxes be without marketing emails? Klaviyo is a marketing automation platform that helps businesses create email campaigns and more, incorporating data-driven models to drive customer engagement. With strong momentum in the industry, this stock could be a dynamic performer in the near future. 

Zen Rating: B (Buy) —  see full analysis >  

Recent Price:  $43.23 — get current quote > 

Max 1-year forecast: $47.00 

Why we’re watching:

• Analyst support:  Currently, 12 analysts we track are issuing ratings on KVYO, and it has a Strong Buy consensus. See the ratings here
• Notably, Jackson Ader of KeyBanc (a top 13% analyst) just raised his price target on KVYO and maintained a Strong Buy rating. 
• Ader said they revised Klaviyo's terminal multiple to reflect the company's and the software industry's "strong" momentum. 
• The analyst added that their reiterated Strong Buy rating followed from an analysis of the company's FCFF per share and discounted cash flow over the past decade. 
• Great Zen Rating: Our Zen Ratings system agrees with analysts, rating KVYO a B, or Buy. This means the stock is rated above average based on 115 unique factors, including our proprietary AI algorithms. 
• Great Momentum rating: Among the 7 Component Grades that play into the overall Zen Rating, KVYO has an exceptional A rating for Momentum, which we consider a hallmark of stocks on an upward trajectory that is likely to continue into the future. (See all 7 Zen Component Grades here >)

2- Gambling.com (NASDAQ: GAMB)

We probably don’t have to tell you that sports betting is a big biz. This is one of the pioneers, founded in 2006, and it’s still a market leader. 

Zen Rating: B (Buy)  see full analysis >  

Recent Price: $15.42 — get current quote > 

Max 1-year forecast: $20.00 

Why we’re watching:

• Analyst support: Currently, GAMB enjoys a Strong Buy consensus among the 5 analysts we track issuing ratings. See the ratings here
• Notably, David Katz of Jefferies (a top 18% analyst) recently maintained a Strong Buy rating and raised their price target on GAMB from $18 to $20. 
• Katz said they raised their price target on Gambling.com Group after Jefferies updated its estimates on the announcement of the company's plan to buy OddsJam.
• The analyst explained that their firm believes the deal is a productive tuck-in at a good price for Gambling.com Group because OddsJam brings to the table recurring revenues and specific capabilities that enhance long-term value.
• Impressive grade based on our 115-factor rating system: GAMB enjoys a Zen Rating of B, meaning it’s in the top 20% of stocks we track. 
• Above-average Financials: Among the 7 Component Grades that are factored into each Zen Rating, GAMB stands out with a B rating for Financials, indicating it’s likely a financially sound company. (See all 7 Zen Component Grades here >)

3- McKesson Corp. (NYSE: MCK)

Zen Rating: B (Buy) —  see full analysis >  

Recent Price: $567.28 — get current quote > 

Max 1-year forecast: $713.00

Why we’re watching:

• Analyst support: Based on 10 analysts we track issuing ratings on MCK, the stock has a Strong Buy consensus. See the ratings here
• Notably, Erin Wright of Morgan Stanley (a top 7% analyst) recently raised their price target on MCK by 4.9% from $612 to $642.
• Wright's price target hike was delivered in a FY 2025 preview of names in their Healthcare Services sector coverage area.
• Unitedhealth Group was replaced by Mckesson as Morgan Stanley's "Top Pick" in the group, the analyst told investors.
• In 2024, Diversified Managed Care "woefully underperformed," but "the uncertainty pressuring sentiment" notwithstanding, the analyst expressed optimism about "opportunities in a friendlier policy backdrop" going forward.
• Great Zen Rating: MCK boasts an above-average Zen Rating of B (Buy), meaning it’s in a class of stocks that have enjoyed average annual returns of 19.88%.
• Great component scores: Among the 7 Component Grades that play into the overall Zen Rating, MCK has higher-than-average marks for Value, Growth, and Safety, meaning it may be an enticing mix for investors who want to reduce risk but still want growth potential. (See all 7 Zen Component Grades here >)

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