November 3rd is approaching and Wall Street is preparing for a Biden victory. But what would a democratically controlled White House mean for the markets? While some investors believe that a Biden presidency would hurt stocks and put pressure on the markets, Marko Kolanovic, global head of macro-quantitative quantities and derivatives strategy at JP Morgan, has asked to distinguish himself. In a recent statement to customers, he wrote that the conclusion will remove significant uncertainty regardless of the election result. Additionally, the strategist believes that the release of a COVID-19 vaccine as well as the reopening of the economy could act as catalysts that spur a rotation into value stocks. “We believe these two catalysts will be value catalysts and we believe they will have legs … The decline in COVID should be a strong value catalyst,” commented Kolanovic. JP Morgan analysts take Kolanovic’s outlook to heart and make specific recommendations that point to three names that look particularly convincing. With the company’s analysts forecasting an upside potential of at least 30% for any company, we used TipRanks’ database to dig a little deeper as well as the life and annuity rooms. Given its solid position in the industry, JP Morgan has high hopes for this technical name. Five-star analyst Sterling Auty wrote for the company: “Sapiens has carved out a lucrative segment of the insurance market by providing software and services for freight forwarders ranging from the largest reinsurance companies to level 4 P&C freight forwarders. 5 range worldwide. The work that has been done to expand the product portfolio over the past three years is paying off, and we expect a shift in the revenue mix towards more consistent and profitable subscription revenues. When this shift occurs, we expect multiple expansions that will result in the stock price outperforming. “Unlike some of its competitors, SPNS works with P&C insurance companies while focusing on life, annuity and reinsurance carriers. According to Auty, this brings the total addressable market to about $ 40 billion, compared to about $ 20 billion for P&C software providers. “In our opinion, the insurance industry, and in particular P&C insurance, are the most attractive vertical segment for software providers. The very high customer retention rates that create significant customer benefits for life,” explained Auty. It should be noted that the company does not address the largest freight forwarders in each region, but looks for suitable openings, market by market. In addition, offering software, cloud solutions and “all the services required to create a turnkey provider from a single source has helped Sapiens establish a bridgehead in segments of the overall market,” says Auty. From 2015 to 2019 sales increased by 16% and also increased in 2019 and 1H20. “We believe that intelligent segmentation of the market will enable Sapiens to increase the percentage of subscription software sales, making future growth more permanent and profitable,” said Auty. In keeping with its optimistic approach, Auty began reporting by assigning an overweight rating and a price target of $ 40. This goal brings the upside potential to 41%. (To see Auty’s track record, click here.) There have been 2 buys and 1 hold posted in the past three months. So SPNS is a moderate buy. The average price target of $ 37 provides an upside of 30%. (See SPNS stock analysis on TipRanks.) Academy Sports and Outdoors (ASO) Sporting goods and leisure retailer Academy Sports and Outdoors was only recently floated but has already attracted significant attention from the street. J.P. Morgan is one of those who hit that table on the table. When it debuted in the public market on October 1, the stock was priced at $ 13, which was between $ 15 and $ 17 below the IPO. ASO raised a total of $ 203 million, 19% less than originally expected. While this was not the ideal outcome, JP Morgan’s Christopher Horvers told clients, “In 2H20 we expect the combination of strong underlying trends and expected debt settlement to be easy on the road to ASO turnaround story and upward revisions. The 5-star analyst argues that the company should continue to benefit from “Commitment to Outdoor Sports and Healthy Living in a COVID-19 World” by taking other initiatives to advance a Turn around. These initiatives, dubbed “Retail 101,” include assortment localization, merchandise planning, pricing and promotion, and space productivity efforts, and according to Horvers “are in harmony with advances in customer loyalty and profit the shopping center ”. In addition, he anticipates that ASO could see 150 to 200 basis points of tailwind per year as its e-commerce presence grows. Horvers expects a gross margin of 100 basis points management for the future thanks to improved merchandising and inventory levels. As ASO improves DC allocation, reorganizes workforce, optimizes shipping and implements cross-dock, analysts say another 100 basis points gross margin tailwind could occur. Currently only 22% of the product is cross-docked. Additionally, ASO will pay off more than $ 600 million in debt and refinance its term loan in the fourth quarter, which Horvers said will lower interest expense and push it below 4 times the gross adjustment leverage. In terms of valuation, ASO is currently trading at only 4.6 times the analyst’s EV / EBITDA estimate for 2021, which makes it attractive. Everything that ASO was striving for convinced Horvers to initiate reporting with an overweight rating. In addition to the call, he also set a price target of $ 21, indicating upside potential of 41%. (Click here for Horvers’ track record.) Do other analysts agree? You are. In the last three months only buy ratings have been given, to be precise 7. So the message is clear: ASO is a strong buy. Given the average target price of $ 19.58, stocks could rise 32% over the next year. (See ASO stock analysis on TipRanks) Mission Produce (AVO) As an advanced avocado network, Mission Produce is one of the top players in the avocado game, sourcing, producing and distributing fresh avocados to customers in over 25 countries. Like ASO, this name was recently traded in the public market and got a thumbs up from JP Morgan. Analyst Thomas Palmer wrote in a recent statement to customers about the company’s stock: “We’re seeing long run-time in EBITDA growth is largely driven by sales-related volume and a higher percentage of avocados that come from company-owned farms (the achieve significantly higher margins than third-party providers). Part of the analyst’s bullish thesis relates to the fact that AVO is a “world leader in avocado distributors,” selling 596 million pounds of avocados in the four quarters ending July 2020 and an average over the past decade Volume growth of 12.5% versus 9% in the industry. In addition, the company has margin-increasing farms in Peru, which supplied 11% of its avocado sales volume in fiscal year 19. Palmer also points out that Hass Avocado consumption in the US has increased 8% CAGR over the past decade, according to Hass Avocado. This growth was driven by both USDA dietary guidelines, which encourage consumption of good fats and fiber, and demographics. Additionally, Palmer believes that volume growth could drive EBITDA expansion. “AVO’s volume growth over the past decade has been driven by its industry-leading (and expanding) network of distribution and ripening centers and its diverse sourcing model (two countries of origin for each season),” he explained to Palmer’s high single-digit sales estimate Expect volume growth of around 8 to 10% per year and stable gross profit per pound. For company-owned farms, he expects an increase in production in FY 20 by 22% and in FY 21 and FY 22 by 12% due to improved yields. “Under our model, missionary avocados have four times the gross profit per pound of avocados from outside sources,” he added. When it comes to rating, Palmer likes what he sees too. “We believe that the current valuation of less than 9x EV / EBITDA for fiscal year 22E is a compelling entry point, especially when you consider that the valuation (a) reflects the value of the (profitable) investment income from AVO and Excludes investing in farms. That won’t add to the result for several years, ”he explained. So it should come as no surprise that Palmer joined the cops. In addition to initiating coverage with an overweight rating, he set a price target of $ 18 on the stock. Investors could pocket a 36% gain if that goal is met in the next twelve months. (To see Palmer’s track record, click here.) Judging by the consensus breakdown, opinions are far from mixed. With 5 purchases and no holds or sells in the past three months, the word on the street is that AVO is a strong buy. At USD 17.40, the average target price implies an upside potential of 32%. (See TipRanks AVO Stock Analysis.) To find great ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.