BRP Inc. (DOO): Why Wall Street Is Betting THIS Stock Will Skyrocket

I don’t want to disparage Wall Street analysts — but if the key success was as simple as just following their recommendations, we’d all be millionaires.

That’s not to say that what equity researchers are saying should be discounted — like with most other things, the truth is somewhere in the middle.

If a stock has positive coverage, that’s certainly a plus — but to spot the best opportunities, you have to find tickers that combine that positive coverage with strong growth prospects and fundamentals.

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Today, we’ll be taking a look at one such stock. 

This $5.22 billion market cap business makes a wide assortment of powertrain and marine vehicles — think ATVs, snowmobiles, personal watercraft, and pontoon boats. Its product line is geared toward both personal and commercial usage.

And that stock is … BRP (NASDAQ: DOO).

Let’s begin with the metrics — and we’ll get to the analyst estimates in a minute. 

Our in-house quant rating system uses 115 proprietary factors to evaluate stocks. Those insights are distilled into a single metric — a stock’s Zen Rating.

Only the top 5% of stocks are given a Zen Rating of A, equivalent to a Strong Buy rating. Those stocks have provided an average annual return of 32.52% since the early 2000s.

Not only does DOO rank in the top 5% — it ranks in the top 1%. It even ranks in the very top of the 1% — right now, it’s ranked 8th overall on our list, which consists of roughly 4,600 stocks. That’s no typo — the rating is just that high.

To see why BRP ranks so highly, we have to take a look at the 7 Component Grade ratings that make up each Zen Rating.

Growth is a strong point — here, the stock ranks in the top 6%. BRP is forecast to generate a roughly 50% higher return on assets than the average company in its industry. On top of that, earnings are estimated to grow at five times the rate of the wider market, and more than four times the rate of its industry.

BRP is no slouch when it comes to Value or Financials either — as it ranks in the top 16% and top 15% in these categories, respectively.

The average forecast for BRP shares currently sits at $93, and implies a hefty 30.6% upside. On top of that, no insider selling has been tied to the stock in the past 12 months. On the whole, DOO ranks in the 95th percentile for Sentiment — equivalent to or better than 95% of stocks, or, in other words, in the top 5%.

Lastly, we have our Artificial Intelligence rating. It’s derived from the findings of a neural network trained on more than two decades of market data. We use it to identify likely outperformers — and in this category, DOO shares rank in the 97th percentile of the equities that we track.

The stock also stacks up well against rivals and peers. At present, BRP is the top-rated stock in the Recreational Vehicle industry, which has an Industry Rating of A, and which ranks 12th overall out of a total of 145 industries.

Here’s the kicker. BRP has beaten earnings estimates for 7 quarters in a row. The last beat happened a month ago — and since then, the price has dipped by 4.74%. Combine the stellar growth metrics with a placement in the top 16% for Value, and this neat dip — and we have a buying opportunity on our hands.

We might have to wait for upside — the next earnings call will likely be held in late March. But if you have the patience to hold, this one definitely warrants a closer look — the metrics are there, there’s a strong pattern of outperformance at work, and BRP even has Wall Street’s seal of approval.

—> Click here to research DOO

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