TipRanks’ Smart Score helps investors invest confidently in a challenging investing environment. This quantitative scoring system analyzes stocks on eight key factors and assigns a Smart Score ranging from 1 to 10. A higher score suggests that the stock is more likely to outperform the broader market averages.
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It is worth mentioning that the stocks with a maximum Smart Score (“Perfect 10”) handily outperformed the S&P 500 Index (SPX). These stocks have delivered a total return of 173% since 2016 and generated a positive alpha of 61.9%.
Using the Smart Score tool, let’s look at two stocks that have recently received a “Perfect 10” Smart Score.
Tractor Supply (NASDAQ: TSCO)
Tractor Supply Company is a rural lifestyle retailer selling a wide range of products required for agriculture, home improvement, pet care, and garden maintenance.
It has performed well despite macro headwinds, supply challenges, and tough year-over-year comparisons. Recently, the company announced that it is well-positioned to deliver stellar financials in Q2.
Tractor Supply’s CEO Hal Lawton stated, “The strength of our needs-based, demand-driven business continues as the team is effectively managing inventory levels, inflationary costs, and pressures across the global supply chain.”
Wells Fargo analyst Zachary Fadem is impressed with TSCO’s ability to navigate the macro and supply concerns well. Fadem added that TSCO is among Well Fargo’s “best Hardlines ideas today, with staples-like demand, limited margin downside and upward revision potential via company initiatives.”
Including Fadem, TSCO stock has got 11 Buy recommendations. Moreover, it has received four Hold ratings. Further, the analysts’ average price target of $242.27 indicates 19.1% upside potential over the next 12 months. Along with analysts, TSCO stock has positive indicators from hedge funds and bloggers. Overall, TSCO stock has a maximum Smart Score of 10.
CrowdStrike Holdings (NASDAQ: CRWD)
Global cybersecurity company CrowdStrike is gaining from solid demand. Its annual recurring revenues, customer acquisitions, and retention rate remain high.
During the Q1 conference call, its CFO, Burt Podbere, stated that CRWD’s gross retention rates had touched an all-time high. Podbere added that the “number of customers adopting six or more and seven or more modules both more than doubled year-over-year.”
Thanks to the ongoing momentum in its business, CrowdStrike raised its revenue and profit outlook for FY23.
Buoyed by CrowdStrike’s solid performance, Needham analyst Alex Henderson stated, “Crowd is setting itself apart from other high growth names based on its blend of strong growth and substantial leverage and already healthy Operating Margins and Cash Flow.”
He added that the macro softness could act as a tailwind for CrowdStrike as customers will consolidate vendors.
Henderson is bullish about CRWD’s prospects. Including Henderson, CRWD stock has received 21 Buy recommendations for a Strong Buy consensus rating. Further, the analysts’ average price target of $234.55 indicates 23.3% upside potential over the next 12 months. Besides analysts, hedge funds and bloggers are also bullish on CRWD stock. It sports a maximum Smart Score of 10.
Last Words
The ability of TSCO and CRWD to perform well amid a challenging business environment and a maximum smart score on TipRanks’ quantitative scoring system indicate that these companies have a higher likelihood of beating the broader market averages.
