TipRanks’ Stock Screener tool helps investors select stocks with a higher potential to outperform market returns. One helpful feature for identifying such stocks is the “Perfect 10” Smart Score. It’s important to note that stocks with the “Perfect 10” score have historically surpassed the S&P 500 Index (SPX) by a significant margin. Using the Stock Screener tool, we’ve selected three stocks with a “Perfect 10” score and a Strong Buy consensus rating: PDD Holdings (NASDAQ:PDD), Li Auto (NASDAQ:LI), and United Airlines (NASDAQ:UAL).
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Before we continue, let’s take a moment to understand how TipRanks calculates a Smart Score for stocks. The potential of a stock is evaluated based on eight key market factors, including analyst ratings, investor sentiment, hedge fund manager activity, and technical analysis, among others. After considering these factors, a Smart Score between 1 and 10 is assigned to the stock, with 10 being the highest score.
Now, let’s take a closer look at the above-mentioned companies.
Is PDD a Good Stock to Buy?
PDD is a Chinese online retailer. Interestingly, the stock has received a “Perfect 10” Smart Score, as it met the requirements for five out of the eight parameters.
The company is benefiting from the increasing market share of its e-commerce platform, Pinduoduo, and technological investments.
On TipRanks, the stock has a Strong Buy consensus rating based on 13 unanimous Buy ratings. The analysts’ average price target on PDD stock of $219.23 implies 44.9% upside potential from current levels. Over the past three months, shares of the company have gained 21.46%.
What Is the Forecast for LI Stock?
LI is a Chinese electric vehicle manufacturer. Li Auto stock has cleared five out of the eight parameters to achieve a “Perfect 10” Smart Score.
The company is experiencing strong demand for its vehicles. Additionally, the launch of its first pure-electric minivan and plans to strengthen its presence in China bode well for LI’s future performance.
Overall, Wall Street is optimistic about the stock. Li Auto has a Strong Buy consensus rating based on 11 Buys and one Hold. The analysts’ average price target on LI stock of $35.96 implies a 78.4% upside potential from current levels. Shares of the company have declined 55.58% in the past three months.
What Is the Future of UAL Stock?
UAL is an air transportation services provider and sports a “Perfect 10” Smart Score.
Solid travel demand is expected to aid UAL’s top-line growth. Additionally, the company’s efforts to attract customers with premium cabin offerings and its loyalty program bode well for its long-term growth.
Overall, UAL has a Strong Buy consensus rating based on 13 Buy and two Hold ratings. The analysts’ average price target on UAL stock of $68.95 implies an upside potential of 33%. Shares of the company have gained 13.9% in the past three months.
Concluding Thoughts
Investors seeking stocks with the potential to outperform the market could consider PDD, LI, and UAL. The “Perfect 10” Smart Scores on TipRanks and optimistic analyst projections for these stocks support expectations of outperforming the broader market. It is worth noting that investors can use TipRanks’ Experts Center tool to discover top stock picks as well.
