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Weekly Watchlist: Stocks to Watch for the Week of 8/26

By Jessie Moore, Stock Researcher and Writer
August 23, 2024 5:43 PM UTC
Weekly Watchlist: Stocks to Watch for the Week of 8/26

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  • We did the heavy lifting so you don’t have to — keep reading for a fresh batch of promising stocks to watch in the coming week. Each one of these 5 stocks has a Strong Buy consensus among the analysts we track. 
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Note: This article does not provide investment advice. The stocks mentioned should not be taken as recommendations. Your investments are solely your decisions.

5 Stocks to Watch: Week of 8/25 

1 - Ardent Health Partners Inc. (NYSE: ARDT

Ardent Health Services is a healthcare provider operating hospitals and clinics across the United States. The company collaborates with physicians and communities to enhance patient outcomes through innovative healthcare solutions and compassionate service.

Analyst consensus: STRONG BUY 

Price: $17.43 (8/23 — see latest price here)

Average 1-year forecast: $22.22 

Why it’s watchlist-worthy: 

  • Note: ARDT was only recently listed, so our due diligence checks are currently limited. Add ARDT to your watchlist on WallStreetZen and stay up to date as we uncover more information about the company. 
  • It may be a good value: According to our due diligence checks, ARDT is good value based on its book value relative to its share price (3.26x), compared to the US Medical Care Facilities industry average (4.94x).
  • Good ROE forecast: ARDT's Return on Equity is forecast to be high in 4 years (54.03%); analysts are confident in the firm's ability to efficiently generate return on equity. 
  • It’s a STRONG BUY: ARDT enjoys a Strong Buy consensus among the analysts we track. (See the ratings here.) For example, David S Macdonald of Truist Securities (a top 5% analyst) recently reiterated a Strong Buy rating on ARDT following the company’s Q2 earnings. Following the quarter's outperformance, Macdonald expressed optimism about the stock. 
  • Some analysts forecast nearly 60% upside for ARDT in the coming year. See what they’re saying.  

Chart for ARDT, courtesy TradingView 

2- Civitas Resources Inc. (NYSE: CIVI

Civitas Resources, Inc. is an oil and natural gas exploration and production company focused in the Rocky Mountain region, primarily the Wattenberg Field of the Denver-Julesburg Basin of Colorado. The company was founded in 1999 and is based in Denver, CO.

Analyst consensus: STRONG BUY 

Price: $62.14 (8/23 — see latest price here)

Average 1-year forecast: $93.00

Why it’s watchlist-worthy: 

  • It’s a STRONG BUY: CIVI enjoys a Strong Buy consensus among the analysts we track (See the ratings here). For example, Neal Dingmann of Truist Securities (a top 2% analyst) maintains a Strong Buy rating on the stock, largely based on Truist Securities' thesis that "Civitas Resources is one of the least expensive ways to play the Permian with a DJ kicker." Currently, Dingmann expects no change to the company's operational efficiencies and incrementally enhanced inventory and predicted that Civitas Resources "will produce one of the highest 2025 free cash flow yields in the group."
  • Signs point to value: According to our due diligence checks, CIVI is good value based on its book value relative to its share price (0.91x), compared to the US Oil & Gas E&P industry average (1.82x); CIVI is also a good value based on it's Price to Earnings and rate of earnings growth, measured by PEG ratio (0.48x).
  • Competitive ROA forecasts: CIVI is forecast to generate higher Return on Assets (8.61%) than the US Oil & Gas E&P industry average (5.94%). 
  • High dividends: CIVI offers 10.33% dividends, which puts it in the top 25% of all companies listed. 

1-year chart for CIVI, courtesy TradingView 

3- DraftKings, Inc. (NASDAQ: DKNG

DraftKings Inc. operates a digital sports entertainment and gaming company. It offers multi-channel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. 

Analyst consensus: STRONG BUY 

Price: $36.09 (8/23 — see latest price here)

Average 1-year forecast: $50.82

Why it’s watchlist-worthy: 

  • Profit margin growth: Our due diligence checks reveal that DKNG's profit margin has increased (+29.4%) in the last year from (-38.9%) to (-9.5%), and is approaching profitability.
  • Competitive revenue growth within its industry: DKNG's revenue has grown faster (86.24% per year) than the US Gambling industry average (23.54%). 
  • It’s a STRONG BUY: DKNG enjoys a Strong Buy consensus among the 22 analysts we track issuing ratings on the stock (See the ratings here). 
  • For example, Mike Hickey of Benchmark (a top 8% analyst) maintains a Strong Buy rating, and recently raised their price target on DraftKings (NASDAQ: DKNG) by 7.3% from $41 to $44 on 8/20. Hickey still considers Draftkings "a 2024 top idea" and predicts a "strong run" for the company by year's end in spite of the stock's 2% YTD price dip. (See why some analysts believe DKNG could top $60 in the coming year.)

1-year chart for DKNG, courtesy TradingView 

4 - FTAI Aviation (NASDAQ: FTAI)

Fortress Transportation & Infrastructure Investors LLC owns and leases infrastructure and related equipment for the transportation of goods and people in Africa, Asia, Europe, North America, and South America. 

Analyst consensus: STRONG BUY 

Price: $120.80 (8/23 — see latest price here)

Why it’s watchlist-worthy: 

  • Forecasts are good: Our due diligence checks reveal that FTAI's Return on Equity is forecast to be high in 4 years (918.28%); analysts are confident in the firm's ability to efficiently generate return on equity. FTAI is also forecast to generate higher Return on Assets (18.52%) than the US Rental & Leasing Services industry average (17.21%).
  • Rapid growth: FTAI's revenue has grown faster (24.14% per year) than the US Rental & Leasing Services Industry average (11.87%) as well as the US market average (15.17%). 
  • Accelerating revenue: FTAI's revenue growth is accelerating - its growth over the last year (28.22%) is above its 5-year compound annual rate (24.14%). 
  • It’s a STRONG BUY: 10 analysts we track have rated FTAI; the consensus is Strong Buy (See the ratings here). 
  • One notable example? Josh Sullivan of Benchmark (a top 1% analyst) raised their price target on FTAI by 50% from $100 to $150 on 8/16. The analyst contextualized their price target move by saying that their $150 price target assumes no PMA approval, Sullivan told readers, and moves up to $185 with full PMA approval. The analyst continued by saying Benchmark believes Ftai Aviation's Aerospace Products cost/time-saving applications are a relatively defensive play in a soft-landing scenario because cost-conscious airlines are likely to forego full engine restorations for targeted green-time module swaps.

1-year chart for FTAI, courtesy TradingView 

 5- Skechers USA (NYSE: SKX

Skechers U.S.A. Incorporated sells footwear for men, women, and children worldwide. Its products are offered through e-commerce, concept stores, factory outlets, and big box stores. 

Analyst consensus: STRONG BUY 

Price: $69.63 (8/23 — see latest price here)

Average 1-year forecast: $80.33 

Why it’s watchlist-worthy: 

  • It’s our Stock of the Week: According to our resident stock-picking expert, Steve Reitmeister, the current dip following earnings is a spectacular time for an SKX entry, “Thanks to the recent sell off we get to buy shares closer to $65 which points to ample upside potential … It is not hard to see shares heading north of $100 by the end of 2025.” Get the full story here
  • It’s a STRONG BUY: Among the analysts we track, SKX has 7 Strong Buy and 2 Buy recommendations — no Hold, Sell, or Strong Sells. Even the most conservative 1-year forecast suggests +6.38% upside. (See the ratings here.) 
  • It may be a good value: Our due diligence checks show that SKX is good value based on its earnings relative to its share price (17.9x), compared to the US market average (27.24x)and compared to compared to the USFootwear & Accessories industry average (31.23x).
  • Finances look to be in order: According to our due diligence checks, SKX's profit margin has increased (+0.8%) in the last year from (6.1%) to (6.9%); additionally, SKX's Earnings (EBIT) of $745.04M can safely cover interest payments on company debt ($1.77B); and SKX's short-term assets ($4.25B) exceed its short-term liabilities ($2.06B).

1-year chart for SKX, courtesy TradingView 

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