The Motley Fool

Goldman’s tip JB Hi-Fi shares as a ‘buy’ with $30 price target ahead of earnings season

Many investors like to take a long hard look at their share portfolios before the critical August profit reporting season that can make or break a calendar year’s investment returns. 

If the analysts at Goldman Sachs are on the money it could be a good idea to stuff a few JB Hi-Fi Limited (ASX: JBH) shares into your investment portfolio. According to a July 28 research note out of ‘Goldies’ the analyst community may be underestimating JB Hi Fi’s earnings potential in FY 2020 and FY 2021.

This is important as existing valuations for stocks like JB Hi-Fi are partly based on analysts’ expectations, but the kicker is Goldman’s expects JB Hi-Fi to beat these expectation and provide a stronger-than-expected update as to trade over the 2019 winter months.

Goldman’s is tipping JB Hi-Fi shares could hit $30 within 12 months, and other stocks it expects to beat consensus forecasts this earnings seasons include Hub24 Ltd (ASX: HUB), News Corp (ASX: NWS) and Qantas Airways Limited (ASX: QAN).

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Related Articles...

Latest posts by Tom Richardson (see all)