Market Turbulence Begets Opportunity: 2 Under-the-Radar Picks Gaining Traction

2 Stocks to Buy on New Analyst Coverage: Defying Ongoing Volatility

The ongoing market volatility has led to a significant increase in the number of stocks that are being downgraded or removed from analyst coverage. However, in the midst of this chaos, there are some stocks that are defying the trend and gaining new analyst coverage.

In this article, we'll take a closer look at two such stocks that have recently received new analyst coverage and are worth considering for your portfolio.

Stock #1: Shopify Inc. (SHOP)

Shopify Inc. (SHOP) is a Canadian e-commerce company that provides businesses with the necessary tools to establish an online presence. The company has been on a tear lately, with its stock price more than doubling in the past year.

Recently, Morgan Stanley initiated coverage on Shopify with an Overweight rating, citing the company's strong growth potential and its leadership position in the e-commerce space. The analyst also set a price target of $1,200, which represents a potential upside of around 10% from the current price.

Stock #2: Zoom Video Communications Inc. (ZM)

Zoom Video Communications Inc. (ZM) is a cloud-based video conferencing platform that has become a household name during the pandemic. The company has been growing rapidly, with its revenue more than tripling in the past year.

Recently, Deutsche Bank initiated coverage on Zoom with a Buy rating, citing the company's strong growth potential and its leadership position in the video conferencing space. The analyst also set a price target of $450, which represents a potential upside of around 15% from the current price.

Why These Stocks Are Worth Considering

Both Shopify and Zoom are well-positioned to continue their growth momentum in the coming years. Shopify's e-commerce platform is highly scalable, and its growth potential is driven by the increasing adoption of online shopping. Zoom's video conferencing platform is also highly scalable, and its growth potential is driven by the increasing adoption of remote work and virtual meetings.

In addition, both companies have strong financials and are generating significant cash flow, which will allow them to invest in their businesses and return value to shareholders.

Conclusion

In the midst of the ongoing market volatility, Shopify and Zoom are two stocks that are worth considering for your portfolio. Both companies have received new analyst coverage and have strong growth potential. With their strong financials and scalable business models, they are well-positioned to continue their growth momentum in the coming years.