Grubhub is a title that could more than double in 2019, according to Stephens

Online financial services provider Enova International Inc. has the highest upside potential among stocks included in Stephens’ best ideas list for 2019, with a target for a stock price 131% above its trading level. current.

Stephens has been making the list for 14 years based on its top 30 analysts picks to outperform their industry peers, as well as the Russell 2000 RUT,
+ 0.31%
and markets in general. In 2018, his list of best ideas generated a negative return of 14.7% (calculated from January 2, 2018 to December 26), compared to a negative 13.1% for the Russell 2000. The worst performers were the online lender Curo Group Holding Corp. CURO,
which ended the year down 55%, and furniture store chain Conn’s Inc. CONN,
down about 47%. The S&P 500 SPX,
+ 0.88%
fell by 7% in 2018.

Enova ENVA, based in Chicago,
which offers consumer loans, lines of credit and installment loans to borrowers in the US, Canada, UK, Australia, Brazil and China, is expected to continue “at the disciplined growth rate” which he has benefited from since 2017, according to Stephens Vincent analyst. Caïntique.

Management offered strong earnings per share guidance for 2019 during the company’s fourth quarter earnings call and said it plans to grow by signing more banks as partners. Stephens expects the main drivers to be consumers; a double focus on significant growth which has a real impact on results; and a steady mix of origins from existing customers which should drive marketing effectiveness.

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Stephens’s has a target stock price of $ 45 for Enova, from its year-end close of $ 19.46.

Continental Resources Inc. CLR, based in Oklahoma,
has the second upside potential for stocks on the list with a target for a stock price 119% above its current price. Analyst Drew Lipke expects the company to benefit from its multi-year Project Springboard oil development program, which is expected to increase free cash flow and return on capital employed.

Lipke expects the company to show 22% organic oil production growth in 2019, followed by 15% growth in 2020, as it targets Oklahoma’s STACK and SCOOP.

STACK is a geographic area known by the acronym which stands for Sooner Trend Anadarko Canadian and Kingfisher counties. SCOOP stands for South Central Oklahoma Oil Province and is primarily located in the state’s Anadarko Basin. The analyst has a target price of $ 88, which compares to the stock’s 2018 close of $ 40.19.

In third place is Noble Energy Inc. US: NBL,
an exploration and production company based in Houston, Texas, operating in North America, the Eastern Mediterranean and West Africa. Analyst Gail Nicholson has a stock price target of $ 40, more than double her 2018 close of $ 18.76.

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The company “has strong, multi-faceted US operations (Permian, DJ Basin and Eagle Ford) and substantial free cash flow generating a long-lived asset base in the Eastern Mediterranean (first Leviathan production expected YE19)” , wrote the analyst. Leviathan is Noble’s Mediterranean Sea gas field off Israel. Once production begins, Nicholson expects Noble to generate significant free cash flow of over $ 1 billion in 2020, assuming $ 65 oil and an expected ROI for improvement.

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“We expect NBL to use its positive cash flow generation to further improve shareholder value by increasing the dividend (currently pays a quarterly cash dividend of $ 0.11) and / or a share buyback program.” , said the analyst. Noble currently has a $ 750 million share repurchase authorization, of which about $ 232 million had been used by the end of September, she said.

In the restaurant business, Grubhub Inc. GRUB,
+ 2.40%
is the first choice with a target share price 102% above its year-end closing price. The stock was first added to Stephens’ roster after a massive sell-off in the third quarter.

“We continue to support the company’s decision to invest more in acquiring diners to accelerate return on investment (ROI), which we believe will likely lead to further uptick in revenue growth for the company. ‘fiscal year 2019 and greater profit power over time,’ wrote analyst Will Slabaugh. “We also estimated that 3Q18 demonstrated that 1) organic demand continues to accelerate, demonstrating the health of the end market, and 2) additional ad spend in 3Q (leading to failed EBITDA) is are translated into net profits, which we expect to occur on a larger scale in 4Q18 / 2019. “

Here’s Stephens’ full list of top picks for 2019: six of his analysts chose cash as their top pick and are not included here.

Teleprinter Company Name Price 12/31/2019 Price target Percent difference


Landstar System Inc.

$ 95.67

$ 139.00



Enova International inc.

$ 19.46

$ 45.00



RealPage Inc.

$ 48.19

$ 70.00



FMC Corp.

$ 73.96

$ 100.00



Avanos Medical Inc.

$ 44.79

$ 68.00



Knight-Swift Transportation Holdings Inc.

$ 25.07

$ 50.00



CBS Corp.

$ 43.72

$ 58.00



Vulcan Materials Co.

$ 98.80

$ 126.00



Encompass Health Corp.

$ 61.70

$ 81.00



Watsco inc.

$ 139.14

$ 180.00



Global Payments Inc.

$ 103.13

$ 135.00



O’Reilly Automobile Inc.

$ 344.43

$ 410.00



NeoGenomics Inc.

$ 12.61

$ 19.00



Continental Resources Inc.

$ 40.19

$ 88.00



Union Pacific Corp.

$ 138.23

$ 180.00



Ametek Inc.

$ 67.70

$ 87.00



Wintrust Financial Corp.

$ 66.49

$ 88.00



Helmerich & Payne Inc.

$ 47.94

$ 85.00



Groupe Automobile Penske Inc.

$ 40.32

$ 60.00



Signature Bank

$ 102.81

$ 145.00



Noble Energy Inc.

$ 18.76

$ 40.00



Origin Bancorp Inc.

$ 34.08

$ 45.00



Grubhub Inc.

$ 76.81

$ 155.00



CenterState Bank Corp.

$ 21.04

$ 30.00


Source: Stephens

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