Facebook Inc (FB), Edwards Lifesciences Corp (EW): Reasons to Buy These Three Stocks

My outlook for Facebook is remarkably similar to Stifel, as I like Facebook below $25 and tend to sell above $30. When you compare Facebook’s price/sales ratio under 11 to others such as LinkedIn (17) and Zillow (14), you can see that there is value in an expensive space. Therefore, I agree and say “buy” Facebook!

Conclusion

“When assessing an analyst’s call, don’t make an investment decision on one opinion – but rather read the notes within the report and incorporate any channel checks as part of your analysis.”

The quote above is from my new book, and I think it is essential when determining how to play the gains that an analyst’s call often creates. Some calls are better than others – as seen with the three calls in this article.

Canaccord may very well be accurate with its call, but at this point it is speculative – such is the case with Charter and its iPhone 5 call with RF Micro.

To me, Stifel made the best call, and has continued to call Facebook Inc (NASDAQ:FB) correctly for the last six months. I think we are seeing positive trends emerge in advertising – and if Facebook is included in the S&P 500, it could cause additional buying pressure. Therefore, I’d use the notes from the analyst and then decide whether or not Facebook (or the others) might fit into your portfolio.

The article Reasons to Buy These 3 Stocks originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols is long Facebook. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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