Amazon, Illumina among analysts’ favorite stocks to buy on this dip

Illumina (ILMN)

Illumina is a global leader in genomics, grappling with questions like ‘what causes cancer cells to mutate.” Its sequencing technologies enable us to understand genetic variations in health, disease and drug response.

Canaccord Genuity’s Mark Massaro (Track Record & Ratings) has just reiterated his buy rating on the stock. This comes with a bullish $375 price target (15 percent higher than its current trading price).

The analyst recently wrote: “No fault of its own, ILMN is down 21% since reaching $372/share just 9 days ago. We would buy ILMN right here, as ILMN, the dominant leader in sequencing, is powering huge population sequencing projects around the world at a scale never seen before.”

Overall, this stock earns a strong buy consensus rating on TipRanks. In the last three months, analysts have published seven buy ratings and one hold rating. Meanwhile the average analyst price target stands at $350 (7 percent upside potential).

Amazon (AMZN)

E-commerce giant Amazon has slipped recently. The shares are down 8 percent in the last month, but the fundamental outlook remains as strong as ever.

Stifel Nicolaus analyst Scott Devitt (Track Record & Ratings) is now out with the stock’s highest price target, at $2,525. That is 38 percent above from current levels. Devitt also added the stock to the firm’s elite Select List, bumping out Alibaba in the process.

“We are replacing Alibaba with Amazon on the Stifel Select List in light of greater near-term optimism for Amazon, an uncertain China macro environment, and the opportunity created by recent AMZN price movement” Devitt wrote on October 11.

As Devitt noted, Amazon is a leader in two large and rapidly growing markets, e-commerce and cloud services. Moreover, its developing ad business is well-positioned to deliver strong revenue growth over the intermediate to long term.

“Strong momentum in the higher-margin cloud services and advertising business are elevating the near/intermediate-term margin trajectory for the company” the Stifel analyst told investors in the report.

He sees strategic investments (think Prime membership, emerging geographies and video content) both supporting long-term growth and advancing the company’s leadership position.

In the last three months, 36 out of 37 analysts have made bullish calls on the stock. These analysts have a $2,195 price target on AMZN (19 percent upside potential).

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