3 New Strong Buy Ratings from Top-Rated Analysts: 12/24/2024

Mall retailer Abercrombie & Fitch Co. (NYSE: ANF) has support from top-rated analysts from JP Morgan, LPL Financial Holdings Inc. (NYSE: LPLA) just got a 49% price target increase, and analysts think Sezzle Inc. (NASDAQ: SEZL) is set to sizzle. Here’s the story. Gain access to dozens of alerts like this per week — Try WallStreetZen Premium.

1- LPL Financial Holdings Inc. (NYSE: LPLA)

This is the platform that financial pros use, offering an integrated platform of brokerage and investment advisory services to independent financial advisors. But financial advisors at financial institutions also make use of its services, giving it a big reach — and potentially big potential. 

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

Recent Price: $327.93 — get current quote > 

Max 1-year forecast: $413.00 

Why we’re watching:

• Analyst support: We currently track 13 analysts issuing ratings on LPLA. 8 of those ratings are Strong Buy ratings, 2 are Buy, and 2 are Hold — making for a Strong Buy consensus. See the ratings 
• Notably, Bill Katz of TD Cowen (a top 13% analyst) just upgraded LPLA from a Hold to Strong Buy, with a big price target increase, from $277 to $413.
• Katz noted that an "expanded value proposition" is visible under the company's new leadership that is an "attractive hedge" to potential "higher for longer" interest rates.
• Additionally, according to Katz, a combination of tighter expense control, further liquidity, and succession-as-a-service validation can bolster the company's multiple.
• LPLA’s above-average Zen Rating of B supports what Katz has to say — it is rated in the top 20% of stocks we track. Of its 7 Component Grades, LPLA shines particularly bright in Growth, Momentum, and Financials, suggesting this stock may pair a solid foundation with great growth potential. (See all 7 Zen Component Grades here >)

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 2- Sezzle Inc. (NASDAQ: SEZL) 

If you’re one of those people who “never carries cash,” then you probably appreciate services like Sezzle, which uses tech to enable payment solutions at brick and mortar stores as well as online. In an industry with an overall B Zen Rating, Sezzle shines as #3 of #46 companies we track in Credit Services.

Zen Rating: A (Strong Buy) —  see full analysis >  

Recent Price: $271.16 — get current quote > 

Max 1-year forecast: $372.00 

Why we’re watching:

• Analyst support: Though only 2 analysts we track are currently issuing ratings on Sezzle, they’re positive: 1 Buy and 1 Strong Buy rating. See the ratings 
• For example, Hal Goetsch of B. Riley Securities (a top 7% analyst) just raised their price target on SEZL by 128.2% from $163 to $372 on 12/19. 
• Goetsch increased their projections for the holiday shopping period, explaining that their previous estimates did not adequately account for seasonality. 
• According to the analyst, the recent "brief report" did not provide any fresh investment insights instead, it "showed conceptional errors concerning the fundamentals" of Sezzle and the BNPL Industry, leading to a decline in the share price. However, there were some disclosures that were taken out of context and included in the report that were outdated and known to informed investors, Goetsch noted.
• Zen Ratings agrees with analysts: With an overall Zen Rating of A, SEZL shines as an exemplary pick not only in its industry but within all of the stocks we track. Stocks with an A rating have historically averaged over 30% annual returns. 
• Among the 7 Component Grades that play into each Zen Rating, SEZL enjoys an A for Sentiment, meaning the general vibe on the street is good about the stock based on upgrades, coverage, and other factors; it also has above-average grades for Growth, Momentum, and Financials. (See all 7 Zen Component Grades here >)

3- Abercrombie & Fitch Co. (NYSE: ANF) 

While Abercrombie & Fitch Co.caters to all ages, it is perhaps best known as the mall store where the “cool kids” buy their clothes. Its offshoot brands include Hollister Co. and Gilly Hicks. With an overall excellent Zen Rating and exemplary Component Grade for Financials, this company gives every indication of a solid foundation and solid growth potential. 

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

Recent Price: $154.56 — get current quote > 

Max 1-year forecast: $220.00 

Why we’re watching:

• Analyst support: With 2 Strong Buy, 2 Buy, and 2 Hold ratings from Wall Street’s top analysts, this stock enjoys a Buy consensus. See the ratings
• For example, Matthew Boss of JP Morgan (a top 11% analyst) just raised their price target on ANF by 1.5% from $201 to $204 on 12/20. 
• Boss reported that they hosted a headquarters meeting with Abercrombie & Fitch Co's CEO, COO, CFO, and other executives. The analyst said their takeaways from the meeting catalyzed their price target hike and the stock's inclusion in their "Positive Catalyst Watch."
• According to Boss, COO Scott Lipesky said Abercrombie & Hollister's inventory is "as fresh and clean as we'd want it to be."
• The analyst added that they increased their Q4 EPS estimate to $3.63.
• Despite being in a notoriously hard industry (Retail), ANF enjoys a very good Zen Rating of B, indicating it’s in a class of stocks that have demonstrated characteristics that align with long-term growth (stocks with a B rating have historically delivered 19.88% annual returns). 
• Excellent Financials rating: Among the 7 Component Grades that shape the overall Zen Rating, ANF has an A rating for Financials, suggesting it is a sound pick for investors who want to see strong fundamentals. (See all 7 Zen Component Grades here >)

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