2 Growth Stocks Wall Street Might Be Sleeping On, but I'm Not
Wall Street's analyst ratings range from 1 to 5, with 1 being a strong sell, 2 a sell, 3 a hold, 4 a buy, and 5 a strong buy. Airbnb (NASDAQ: ABNB) and Vail Resorts (NYSE: MTN) currently have average analyst ratings of 3.5 and 3.3, respectively, placing them somewhere between a hold and a buy. While those scores aren't bad, they are somewhat surprising compared to their growth stock peers.
Considering that the median rating among consumer-facing businesses expected to grow sales by over 10% in the upcoming year is 4.0, it is clear that Airbnb and Vail are not Wall Street's favorite growth stocks. In fact, out of the 162 stocks that met those criteria, Airbnb and Vail held the 23rd and 10th lowest analyst ratings, respectively.
However, given that they enjoy wide moats -- in Airbnb's case, its two-sided network effect, and for Vail, geographic advantages -- I can't help but think that Wall Street may be sleeping on a pair of top growth stocks. Let's explore how these businesses could prove analysts wrong over the long haul.
Source Fool.com
