Two carrier stocks with high scores on TipRanks Smart Score Tool
Major National Express Carriers (GB:NEX) and first group (GB: FGP) stocks score high on the TipRanks Smart Score tool with “Strong Buy” ratings – here’s a look at why.
As the travel industry regains its full strength, the operations of transport companies are in full swing, as are their revenues.
Stocks with a score of nine and ten are expected to outperform market returns.
The TipRanks Smart Score tool helps the investor identify stocks that can outperform the market in various sectors. The tool also allows other filtering options based on the smart score, such as analysts rating, target price, dividends, etc.
Let’s take a closer look at these high performing stocks.
National Express is one of the UK’s leading transport providers and also offers services to mainland Europe, North America, North Africa and Bahrain.
Services include bus, plane, train, express coach and airport transfers.
The company takes advantage of its size and geographical diversification, which allows it to win many large contracts. These contracts help it to maintain constant growth in its turnover.
In its half-year results for 2022, the company won 16 new contracts, mostly in North America, adding £150 million in revenue spread over the life of the contracts. The company’s total revenue increased by 33% to £1.32 billion, which was the highest in 10 years.
The company is on track to meet its second half growth targets with new contracts in Lisbon, Murcia and Geneva. The company’s pipeline of new contracts is also promising, opening up huge opportunities for future revenue growth.
The company is facing headwinds with the rising cost of fuel – but increased demand for affordable travel options during a cost of living crisis could benefit the company.
Is National Express a good stock to buy?
According to analysts’ consensus ratings from TipRanks, National Express stock has a Strong Buy rating, based on four buy recommendations.
The NEX price target is 290p, which has an upside potential of 56%. The price has a 350p high prediction and a 240p low prediction.
First Group is a provider of public transport, including buses and railways, in the UK, USA and Canada. The company is a leader in the public transport space with its first bus divisions and its first rail divisions.
Shares of the company have rallied nicely after hitting bottom when COVID began. The stock has traded up 19.1% this year.
The company’s operations are back on track as it struggles to emerge from lockdowns. In its annual results for fiscal 2022, its First Bus passenger volume jumped 91%, reflecting huge demand for bus travel.
In its First Rail segment, the company secured various long-term contracts, adding to its revenue streams. First Group recently signed a multi-year national rail contract with the UK DfT (Department of Transport) for Great Western Railway.
The company has solid earnings opportunities in both of its segments, which makes it confident of achieving its 2023 targets.
Are First Group shares a good buy?
According to TipRanks’ consensus rating, First Group stock has a strong buy rating.
The forecast for FGP’s share price is 164.3p, which represents a growth of 38% from the current price level. The price target has a forecast high of 168p and a forecast low of 160p.
The companies have a strong presence in the market and have recovered well from the lockdowns.
Both companies are on track to deliver a strong 2023 in terms of growth. And the high smart scores clearly show that they are well positioned to beat market returns.