Wall Street Favorites: 3 Russell 2000 Stocks With Strong Buy Ratings for April 2024

Group 1: Market Overview - Investors are encouraged to focus on Russell 2000 stocks with strong buy ratings, as they typically have lower valuations compared to large-cap stocks like FAANG and the Nasdaq composite [1] - Small-cap stocks in the Russell 2000 index are often overlooked but present attractive opportunities for those seeking undervalued companies with growth potential [1] - Small-cap companies generally have more room for growth due to being earlier in their life cycle compared to large, mature corporations, leading to higher revenue and earnings growth rates [1] Group 2: Company Analysis - Lantheus Holdings (LNTH) - Lantheus Holdings reported total revenues of $1.3 billion for 2023, marking a 39% year-over-year growth, driven by products PYLARIFY and DEFINITY, which saw increases of 61% and 14% respectively [2] - The company has positive Phase 3 results for PNT2002 in treating metastatic castration-resistant prostate cancer and has filed for PNT2003 to treat neuroendocrine tumors [2] - Analysts have a moderate buy consensus for LNTH with a price target range of $82 to $127, suggesting a potential upside of approximately 74.3% from its current price [2] Group 3: Company Analysis - Chart Industries (GTLS) - Chart Industries anticipates significant growth for 2024, forecasting sales to rise by 28% to 37% and adjusted EBITDA to grow by 52% to 68% [4] - The company ended 2023 with $130 million generated from operations in Q4 and improved its net leverage ratio from 4.08 in Q1 to 3.35 by year-end [4] - GTLS aims for a mid-2024 net leverage ratio target of 2.5 to 2.9, with a long-term goal of achieving a range of 2 to 2.5 [4] Group 4: Company Analysis - Atkore (ATKR) - Atkore experienced a 4.2% decrease in net sales in Q1 2024 compared to the previous year, totaling $798.5 million, attributed to lower average selling prices and the economic value of solar tax credits [5] - The company projects an average revenue growth of 3.7% per annum over the next three years, which is lower than the 7.8% growth forecast for the US electrical industry [5] - Atkore's P/E ratio of around nine times earnings is significantly lower than its peers, indicating potential undervaluation [6]