The stocks skyrocketed on Monday as the new data showed tentative signs that the coronavirus pandemic is receding. However, the markets will need some time to recover after the huge losses during the worldwide crisis. While the majority of businesses had to shut down during the global lockdowns, some stocks still managed to gain.
Investors resorted to sell-offs several times as they feared the dire consequences of the virus. As a result, many stocks are now trading much lower than usual. Experts recommend to grab them until they hit high again.
According to Goldman Sachs’ analysts, Huya is a good choice right now. It is a game platform, with interactive video services supporting music, anime, e-sports, talent shows, reality programming, and outdoor activities. While the lockdowns continue, the demand for Huya is growing.
Analyst Piyush Mubayi stated that Huya’s paying users had reached a record high of 5.5mn according to management. The platform is available only in China, but the country’s domestic web audience surpasses 800 million.
The company has beaten forecasts in the last three quarters, operating consistently at a profit. Furthermore, it’s fourth-quarter revenues grew by 64% to reach $348 million. Mubayi set a price target at $21 for the stock, suggesting a 24% upside potential.
What about Rapid7?
Rapid7 has good potential to gain as well. The stock’s revenue came in at $91.7 million, showing 33% year-over-year growth, and it beat the earnings forecast with a 3-cent EPS in the fourth quarter as well.
This cybersecurity company provides customers with the ability to detect and control their exposure to digital threats, using data and analytic solutions. Rapid7 hit high in 2019, but it fell by 21% in 2020. However, after it bottomed out on March 16 at $33.40, the stock climbed 32% already.
The company’s shares are currently trading at $44.39, but if the $64.45 price target is met, then the shareholders will gain 45%. Goldman Sachs’s analyst Brian Essex set the price target at $49 for this stock, with an upside potential of 11%.