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3 Recent IPOs Still Worth Buying

Oasis Petroleum (OAS), Academy Sports & Outdoors (ASO), and McAfee Corporation (MCFE) are three examples of stocks that IPO'd in the past 12 months that are commonly overlooked simply because the IPO euphoria is fading. The fact that each of these stocks has a B POWR rating grade makes them that much more intriguing.

IPOs generate a lot of hype in their first few weeks of trading but then are often forgotten. However, these shares can have more upside especially if institutional investors are building positions in them.

These inflows are often balanced by insiders selling as lockup periods expire. But, buying into these periods can be great opportunities especially with high-quality companies.

Oasis Petroleum (OAS), Academy Sports & Outdoors (ASO), and McAfee Corporation (MCFE) are three examples of stocks that IPO'd in the past 12 months that are commonly overlooked simply because the IPO euphoria is fading. The fact that each of these stocks has a B POWR rating grade makes them that much more intriguing.

OAS

OAS has been in business since ’07. Based in Houston, TX, OAS is an independent explorer for oil and natural gas. OAS’s assets are mainly centered in the Montana and North Dakota sections of the Willison Basin. The company’s aggregate leasehold position in this space is about 500,000 net acres.

OAS has a B POWR Rating grade, meaning it is a Buy. The stock has an A Momentum component grade along with Bs in the Quality, Value, and Growth components. Investors can find out how OAS fares in the rest of the POWR Ratings components such as Sentiment and Stability by clicking here.

Out of the 92 publicly traded companies in the Energy - Oil & Gas space, OAS is ranked 12th. Investors are encouraged to click here to learn more about the stocks in this segment.

The average analyst price target for OAS is $124.71. If the stock hits this price point, it will have increased by slightly more than 46%. The highest analyst target price for the stock is $158. In the past 147 days, the average analyst price target for OAS has increased by more than $56.

ASO

ASO provides outdoor recreation items including sporting goods to consumers throughout the United States. ASO products include apparel, footwear, outdoor gear, and sports items. Headquartered in Katy, TX, ASO has a forward P/E ratio of 8.09. This is a comparably low ratio that indicates ASO is likely undervalued at $39.61. The stock's 52-week high is $42.75. ASO has a 52-week low of $12.05.

ASO is a Buy as it has a B POWR Rating grade. The stock has an A Momentum component grade along with B grades in the Quality and Value components. You can find out how ASO grades out in the rest of the POWR Ratings components such as Stability, Sentiment, and Growth by clicking here.

Of the 35 stocks in the Athletics & Recreation space, ASO is ranked 23rd. You can find out more about the stocks in this segment by clicking here.

If the top analysts are correct, ASO will reach its average target price of $45.38. An increase in price to this level represents a jump of nearly 30%. The highest analyst price target for the stock is $50. In the past 147 days, the average analyst price target for ASO has increased more than $18. A total of 10 analysts have issued recommendations for the stock. Exactly three of these analysts view the stock as a Strong Buy, six consider it to be a Buy and only one considers it to be a Hold.

MCFE

This device-to-cloud cybersecurity specialist provides digital protections for consumers and businesses alike. Located in beautiful San Jose, CA, MCFE was in the news in recent months for all the wrong reasons. The founder of the company, John McAfee, was found hanged in a jail cell as he awaited extradition to the United States.

MCFE has a 24.22 forward P/E ratio. This ratio indicates the stock might be slightly overvalued. However, MCFE is still trading about $6 below its 52-week high of $32.83. The stock's 52-week low is $14.80.

MCFE has a B POWR Rating grade, meaning the stock is a Buy. MCFE has an A Sentiment component grade along with Bs in the Quality and Value components. Investors can find out how MCFE fares in the rest of the POWR Rating components such as Momentum, Stability, and Growth by clicking here.

A total of 25 stocks are in the Software - Security space. MCFE ranks second in this group. Investors who would like to learn more about the stocks in this space can do so by clicking here.

The top analysts are bullish on MCFE, setting an average target price of $29.43 for the stock. If MCFE reaches this average analyst target price, it will have popped by nearly 14%.


MCFE shares were trading at $27.18 per share on Wednesday morning, up to $0.28 (+1.04%). Year-to-date, MCFE has gained 131.46%, versus a 20.62% rise in the benchmark S&P 500 index during the same period.



About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.

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