The top 10 things to watch in the stock market Monday

The top 10 things to watch Monday, Dec. 11

1. U.S. stocks are muted Monday following last week’s push to a new 52-week high in the S&P 500, helped by a stronger-than-expected jobs report Friday. Good economic news is good news for the stock market, for now, with investors looking ahead to Tuesday’s consumer price index report. But we’ll learn what the Federal Reserve makes of the state of the labor market and inflation when the central bank convenes this week for its final meeting of the year.

2. Bank stocks like Club name Wells Fargo became “extraordinary performers” last week, according to Jim Cramer’s Sunday column. “The percentage gains for bank shares and the pretty stock charts, all wondrous, look like they are in their infancy,” he writes.

3. Health insurer Cigna abandons its pursuit to acquire Club holding Humana — a deal that was misguided from the start because it never would have received regulatory approval. Cigna announces a new $10 billion stock buyback. And shares of Humana rally roughly 2% in premarket trading.

4. Occidental Petroleum announces plans to buy privately held CrownRock for $12 billion in cash and stock, while raising its quarterly dividend by 4 cents, to 22 cents per share. Before the deal announcement, Morgan Stanley had upgraded Occidental to overweight from equal weight, with an unchanged price target of $68 a share.

5. More analysts are warming up to energy stocks after last week’s carnage. Citi upgrades Club holding Coterra Energy, along with EQT and Southwestern Energy, to a buy. Coterra is the firm’s top large cap pick, with a $30-per-share price target based on capital-efficiency improvements.

6. Goldman Sachs upgrades Abbvie to buy from neutral, with a $173-per-share price target. The firm cites revenue that has proved more resilient than expected, along with the drug maker’s recent deployment of capital to build out its pipeline. Over the past two weeks, Abbvie has shelled out nearly $20 billion in cash to acquire ImmunoGen and Cerevel Therapeutics.

7. JPMorgan raises its price targets on a handful of cybersecurity stocks, including CrowdStrike (to $269 a share from $230), Club name Palo Alto Networks ($326 from $272) and Zscaler ($212 from $200).

8. Citi upgrades Nike to buy from neutral, while raising its price target on the stock to $135 a share, up from $100. The firm sees margin recovery beginning in the second quarter of next year through 2025, helped by easing freight costs, leaner inventories and a shift to direct-to-consumer.

9. Jefferies upgrades Best Buy to buy from hold, while raising its price target to $89 a share, up from $69. Analysts at the bank think this call won’t take much to work, with expectations low and the stock cheap and yielding a 5% dividend.

10. Citi resumes coverage of Club holding Broadcom with a buy rating and $1,100-a-share price target. The firm sees the chipmaker’s artificial-intelligence business offsetting the cyclical downturn in the semiconductor business, along with strong accretion from its recent acquisition of VMware. We thought the company reported a better quarter last Thursday than what the market gave it credit for. 

(See here for a full list of the stocks at Jim Cramer’s Charitable Trust.)

What Investing Club members are reading right now

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.


Source link

#top #watch #stock #market #Monday

Top Wall Street analysts say these stocks have the best growth prospects

CrowdStrike IPO at the Nasdaq exchange June 12, 2019.

Source: Nasdaq

While macro uncertainty continues to distract investors, it is prudent to focus on companies that are well-positioned to navigate challenges with their solid execution and deliver attractive growth over the long term by capitalizing on secular trends. 

Here are five such stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performance.


First, we will look at cybersecurity solutions provider Zscaler (ZS). Earlier this month, the company reported its fiscal fourth-quarter results and outlook, which topped Wall Street’s expectations. That said, management cautioned that deals are taking longer to close due to a challenging macro backdrop.

Praising Zscaler’s performance, TD Cowen analyst Shaul Eyal said that the rising demand for the company’s Zero Trust solutions and disciplined spending drove the fourth-quarter outperformance.

The analyst noted that over the past seven quarters, Zscaler’s annual recurring revenue (ARR) has doubled to $2 billion from $1 billion. Other interesting points that the analyst focused on included the company’s large deals, a strong pipeline, and growing federal contracts. (Zscaler serves 12 of the 15 U.S. cabinet-level agencies.)  

Further, the company continues to invest in AI and sees huge growth potential for its AI-powered features. It provides data protection capabilities to prevent the leakage of sensitive data through generative AI.  

Overall, the analyst reiterated a buy rating on ZS stock with a price target of $195, saying, “Investments in AI, Cloud and go-to-market are set to accelerate growth.”

Eyal holds the 9th position among more than 8,500 analysts tracked on TipRanks. In all, 70% of his ratings have been profitable, with each generating an average return of 25.5%. (See Zscaler’s Financial Statements on TipRanks)

CrowdStrike Holdings

Another cybersecurity stock in this week’s list is CrowdStrike (CRWD), which recently reported upbeat fiscal second-quarter results and issued solid guidance.

In reaction to the impressive performance, Needham analyst Alex Henderson raised his price target for CRWD stock to $200 from $170 and reiterated a buy rating on the stock. The analyst noted that the company achieved strong growth in new products under its Identity, Cloud, and LogScale Security Information and Event Management (SIEM) offerings.

The analyst also highlighted management’s commentary about the company’s generative AI cybersecurity product called Charlotte AI, which they believe can immensely improve execution for customers by automating workflows. He added that the use of AI helped the company enhance its own adjusted operating margin, which increased by 472 basis points to 21.3% in the fiscal second quarter.

Henderson called CRWD one of his top recommendations in cybersecurity and said, “Crowd is taking market share with relatively stable pricing and strong new product uptake.”

The analyst also said that the company’s managed services, which are core to the Falcon Complete offering, are enjoying high demand and differentiate the platform from others like Microsoft (MSFT).    

Henderson ranks 162nd among more than 8,500 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, with each rating delivering a return of 15.1%, on average. (See CrowdStrike’s Technical Analysis on TipRanks) 

Chipotle Mexican Grill

Next up is Mexican fast food chain Chipotle Mexican Grill (CMG). Baird analyst David Tarantino, who ranks 357 out of more than 8,500 analysts on TipRanks, said that CMG remains his top idea for investors with a 12-month horizon.

The analyst observed that the stock has pulled back since the mixed second-quarter results due to concerns about late Q2 2023 and early Q3 traffic, subdued Q3 restaurant margin outlook, and macro factors. Nevertheless, he feels that this pullback has created an attractive opportunity to buy CMG stock based on multiple positive catalysts that could emerge in the months ahead.

“Specifically, we expect signs of strong same-store traffic momentum and further pricing actions to lead to an upward bias to EPS estimates and support robust valuation metrics on CMG heading into year-end,” said Tarantino.

Additionally, he sees the possibility of CMG accelerating its unit growth to the high end of its target of 8% to 10% annually, supported by the hiring of additional construction managers this year. Tarantino estimates that a combination of about 10% unit growth and mid-single-digit comparable sales could drive low-to-mid teens revenue growth and more than 20% EPS increase, a profile which he believes deserves a premium valuation.

Tarantino reaffirmed a buy rating on CMG stock with a price target of $2,400. His ratings have been successful 62% of the time, with each rating delivering an average return of 10%. (See CMG Hedge Fund Trading Activity on TipRanks).


Athletic apparel retailer Lululemon (LULU) impressed investors with its fiscal second-quarter performance and improved outlook. The company experienced strong momentum in North America and a spike in its international business, mainly due to robust sales in China.

Commenting on the 61% growth in sales from Greater China, Guggenheim analyst Robert Drbul said that he continues to believe that China holds significant growth potential for Lululemon, as the company aims to quadruple international revenues by 2026. He also highlighted that Lulu intends to open a majority of its 35 new international stores, scheduled for this year, in China. 

The analyst raised his Fiscal 2023 and 2024 earnings estimates and believes that demand for the company’s merchandise remains strong, as competitive pressures from upcoming athletic brands seem overestimated.  

Drbul maintained a buy rating on LULU and a price target of $440, justifying that the company “stands to benefit from favorable secular tailwinds (health, wellness, casualization, and fitness, including at-home).”

Drbul ranks No. 958 out of more than 8,500 analysts tracked on TipRanks. Additionally, 57% of his ratings have been profitable with an average return of 5%. (See Lululemon Insider Trading Activity on TipRanks)

Acushnet Holdings

The last stock on this week’s list is Acushnet Holdings (GOLF), a manufacturer of golf products. Tigress Financial analyst Ivan Feinseth believes that the company is well-positioned to benefit from the ongoing growth in golf, driven by product launches and biannual new golf ball design introductions.

The analyst highlighted that GOLF’s strong brand name continues to be a growth catalyst, as its Titleist brand golf balls remain the preferred choice of PGA and LPGA Tour players. He also noted the strong growth in Titleist golf clubs, Titleist gear, and FootJoy golf wear segments, fueled by a wide range of innovative launches, including new TSR models that rapidly emerged as the most-played model on the PGA tour.

Feinseth increased his price target for GOLF to $68 from $62 and reiterated a buy rating, while emphasizing that the company is enhancing shareholder returns through ongoing dividend increases and share repurchases.

“GOLF’s incredible brand equity, driven by its best-in-class and industry-leading product lines, including FootJoy and Titleist, are major assets and the primary drivers of its premium market valuation,” said Feinseth.  

Feinseth holds the 289th position among more than 8,500 analysts tracked on TipRanks. His ratings have been profitable 58% of the time, with each rating delivering an average return of 10.9%. (See Acushnet Stock Chart on TipRanks)

Source link

#Top #Wall #Street #analysts #stocks #growth #prospects

Top Wall Street analysts say buy these stocks amid the latest macroeconomic uncertainty

Domino’s will roll out 800 custom-branded 2023 Chevy Bolt electric vehicles at locations across the U.S. in the coming months.


Wall Street analysts are focusing on companies that are well-positioned to navigate the ongoing economic turmoil and emerge stronger.

Here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.


Rapid digitization has helped enterprises enhance their productivity. However, it has also made them more vulnerable to cyberattacks. This scenario is driving more demand for cybersecurity companies, including CrowdStrike (CRWD).

Following a recent virtual investor briefing with CrowdStrike’s management, Mizuho analyst Gregg Moskowitz reaffirmed a buy rating on the stock with a price target of $175 and said that CRWD remains a top pick.

The analyst noted that management expects solid growth opportunities for endpoint security and emerging use cases, fueled by Falcon, CrowdStrike’s “truly extensible cloud platform.” The company continues to see a potential total addressable market of $158 billion by 2026, a huge increase compared to $25 billion at the time of its initial public offering in 2019.

The analyst highlighted management’s claim that enterprise customers choose CrowdStrike over Microsoft 80% of the time for several reasons, including its next-generation platform that leverages artificial intelligence compared with the rival’s signature-based approach.

“Despite a more challenging macro backdrop, we continue to believe CRWD’s cloud platform remains highly differentiated, its GTM [go-to-market] is unrivaled, the co. is demonstrating clear success extending beyond traditional endpoint security markets, and FCF [free cash flow] margins remain ~30%,” said Moskowitz.

Moskowitz holds the 237th position among more than 8,300 analysts followed by TipRanks. His ratings have been profitable 57% of the time, with each rating delivering an average return of 12.6%. (See CrowdStrike Stock Chart on TipRanks)


Membership-only warehouse chain Costco (COST) is known to be one of the most consistent players in the retail space, thanks to its resilient business model and impressive membership renewal rates that are generally above 90%.   

Costco recently reported 0.5% growth in its March sales to $21.71 billion, with its comparable sales declining 1.1% year-over-year. (See Costco Insider Trading Activity on TipRanks)

Baird analyst Peter Benedict noted that core comparable sales (which exclude the impact of changes in gasoline prices and foreign exchange) growth slowed to 2.6% in March from 5% in February due to weaker performance in the U.S. and a slackening in non-food categories. Additionally, weakness in e-commerce persisted.

Benedict acknowledged that Costco is “clearly not immune” to a slowdown in general merchandise sales. The analyst said that downward revisions to fiscal third-quarter estimates appear likely following the March sales update. With COST’s forward valuation slightly below its five-year average, he prefers to “opportunistically accumulate shares on pullbacks.”

Benedict reiterated a buy rating on Costco with a price target of $535, as he thinks that the company is well-positioned to handle uneven consumer spending.

Benedict is ranked No. 84 among the more than 8,300 analysts tracked by TipRanks. His ratings have been profitable 69% of the time, with each rating delivering an average return of 14.2%.  

Caesars Entertainment

There is another analyst on this week’s list who was positive about his stock pick following a meeting with the company’s management. Deutsche Bank’s Carlo Santarelli recently hosted investor meetings with casino operator Caesars Entertainment’s (CZR) management. 

Santarelli noted that the company’s strategic priorities are focused on bringing down its debt levels, “operational prudence,” and the growth of its digital business. The company reduced its debt by $1.2 billion in 2022. (See Caesars Hedge Fund Trading Activity on TipRanks) 

The analyst said that he remains “favorably inclined” toward the company, given its stable operations and positive movement in its digital business.

Santarelli reaffirmed a buy rating on Caesars with a price target of $70. He ranks No. 25 among the more than 8,300 analysts followed on TipRanks. Additionally, 66% of his ratings have been successful, with each generating a return of 21.1%, on average.

Domino’s Pizza

Fast-food restaurant chain Domino’s Pizza (DPZ) reported lower-than-anticipated sales for the fourth quarter of 2022. Its U.S. delivery business faced significant pressure last year. Meanwhile, the carryout business saw strong momentum in the U.S. market.

Based on a survey of over 1,000 Domino’s customers, BTIG analyst Peter Saleh noted that carryout-only guests are very loyal to the brand, with only a few indicating that they purchase from other large pizza chains, independents or aggregators.

While carryout sales have been strong recently, the analyst pointed out that the channel is seeing a considerably lower average check compared to delivery. He said that if Domino’s increases the price of the carryout deal by $1, “reclaiming the historical pricing gap with Mix and Match,” it would translate into same-store sales growth of 300 to 350 basis points.

Saleh also feels that Domino’s could drive customers to the carryout segment by migrating its rewards program to a spend-based model. The analyst discussed certain other potential catalysts for the company, including the possibility of a third-party delivery partnership.

Saleh reiterated a buy rating on Domino’s with a price target of $400. He sees potential for the company, even though other analysts have downgraded it.  

The analyst is ranked No. 376 among the more than 8,300 analysts followed by TipRanks. His ratings have been profitable 63% of the time, with each rating delivering an average return of 11.4%. (See Domino’s Blogger Opinions & Sentiment on TipRanks)

Texas Roadhouse

Saleh is also bullish on the casual-dining restaurant chain Texas Roadhouse (TXRH) and reaffirmed a buy rating on TXRH. He increased the price target to $120 from $110 following several investor meetings hosted by his firm with the company’s key executives. 

The analyst highlighted management’s commentary about how Texas Roadhouse is gaining market share due to the decision by some diners to scale up from fast casual restaurants, and by other diners to scale down from fine dining.  He added that over the past two years, the value gap between fast casual operators and Texas Roadhouse has “narrowed considerably,” as restaurant chains like Chipotle have increased menu prices by more than 20%, while Texas Roadhouse has raised prices by only about 10%.

“We continue to believe that Texas Roadhouse is leveraging its value leadership, especially on the kid’s menu, to take market share, as evidenced by record average weekly sales,” said Saleh. (See Texas Roadhouse Financial Statements on TipRanks) 

Despite higher commodity costs, the analyst expects Texas Roadhouse to stick to its strategy of setting lower prices than other restaurants in its category, with its pricing focused on offsetting higher wages only. Overall, Saleh finds TXRH to be one of the “most compelling casual dining concepts,” backed by its consistent industry-leading top line, better unit economics and substantial long-term unit potential.

Source link

#Top #Wall #Street #analysts #buy #stocks #latest #macroeconomic #uncertainty

Top Wall Street analysts pick these five stocks for the long term

A line of shoppers wait to enter BJ’s Wholesale Club market at the Palisades Center shopping mall during the coronavirus outbreak in West Nyack, New York, March 14, 2020.

Mike Segar | Reuters

Concerns about a bank crisis have added to the woes of investors, who were already burdened with stubbornly high inflation and fears of an economic slowdown.

Given the ongoing uncertainty, turning to stock market experts to pick attractive stocks for the long term could be a good decision.

Here are five compelling stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their track records.

Allegro MicroSystems

Allegro Microsystems (ALGM) develops sensing and power semiconductor solutions for motion control and energy-efficient systems. On Tuesday, the company held its inaugural analyst day to provide insights into its strategy and technology.  

Needham analyst Quinn Bolton noted that at the event, management focused on the rapidly growing opportunities across two “secular megatrends” – electrification (mainly e-mobility) and industrial automation. Allegro expects to flourish in these two key markets and to deliver low-double-digit percentage revenue growth from fiscal 2023 to 2028.

Bolton thinks that his margin estimates for fiscal 2024 and 2025 seem conservative, given Allegro’s new long-term model that targets a gross margin of more than 58% and an operating margin of over 32%. He highlighted that the company’s e-mobility serviceable available market is expected to grow at a 25% compound annual growth rate to $3.9 billion by fiscal 2028.

“ALGM’s portfolio is aligned with the industrial secular growth trends in clean energy and automation,” said Bolton. Allegro expects its clean energy and automation SAM to grow at an 18% CAGR to $3.5 billion by fiscal 2028. (See Allegro Insider Trading Activity on TipRanks)

Impressed by Allegro’s growth prospects, Bolton raised his price target to $50 from $42 and reaffirmed a buy rating. Remarkably, Bolton ranks 2nd out of more than 8,000 analysts followed on TipRanks. His ratings have been profitable 67% of the time, generating a 36.3% average return.


Recent results of several cybersecurity companies, including CrowdStrike (CRWD), have reflected resilient demand. Enterprises are moderating their IT spending due to macro pressures but continue to allocate decent budgets to cybersecurity due to growing cyber attacks.

CrowdStrike’s adjusted earnings per share for the fourth quarter of fiscal 2023 (ended Jan. 31) increased 57%, fueled by revenue growth of 48%. At the end of the fiscal fourth quarter, the company’s annual recurring revenue stood at $2.56 billion, reflecting 48% year-over-year growth.

TD Cowen analyst Shaul Eyal attributed CrowdStrike’s upbeat performance to solid execution and robust demand for the company’s Falcon platform. Eyal added that the company is collaborating with Dell to deliver its Falcon platform to Dell’s customers through various avenues.

“We believe CRWD is positioned to achieve its goals of generating ending ARR of $5B by the end of FY26 and of reaching its target operating model in FY25,” said Eyal. He reiterated a buy rating on CrowdStrike with a price target of $180.

Eyal is ranked No. 14 among more than 8,000 analysts tracked on TipRanks. His ratings have been profitable 66% of the time, with each rating delivering a return of 23.7%, on average. (See CrowdStrike Stock Chart on TipRanks)


Next on our list is enterprise software giant Oracle (ORCL), which delivered mixed results for the third quarter of fiscal 2023 (ended February 28, 2023). The company’s adjusted EPS grew 8% and came ahead of Wall Street’s expectations, while revenue growth of 18% fell short of estimates.

Nonetheless, Oracle is optimistic about the solid potential of its cloud business, which delivered 45% revenue growth in the fiscal third quarter. Further, management stated that Cerner, a healthcare technology company acquired in June 2022, has increased its healthcare contract base by about $5 billion. 

Monness, Crespi, Hardt, & Co. analyst Brian White said Oracle delivered “respectable 3Q:FY23 results in a treacherous environment.” He contends that the company’s cloud business continues to navigate ongoing challenges better than the leading public cloud vendors, who reported notable deceleration in revenue growth.

White cautioned investors that the “darkest days” of the economic downturn are ahead of us. That said, he reiterated a buy rating on Oracle with a price target of $113, saying, “Oracle represents a high-quality, value play with the opportunity to participate in a compelling cloud transformation and gain exposure to digital modernization initiatives in the healthcare industry.”

White holds the 50th position among more than 8,000 analysts on TipRanks. Additionally, 64% of his ratings have been profitable, with an average return of 18%. (See Oracle Blogger Opinions & Sentiment on TipRanks)

BJ’s Wholesale Club   

Warehouse club chain BJ’s Wholesale Club (BJ) continues to perform well even as the macro backdrop is getting tougher and pandemic-induced tailwinds have faded. The company recently held its fourth-quarter earnings call and first-ever investor day.

Baird analyst Peter Benedict, who ranks 129th on TipRanks, noted that the company’s membership base is “stronger than ever.” Membership fee income grew 10% in fiscal 2022 (ended January 28, 2023), driven by a 7% increase in members to 6.8 million, a rise in higher-tier penetration and solid renewal rates. It’s worth noting that BJ’s hit its all-time-high tenured renewal rate of 90% for the year.   

“With a structurally advantaged business model, growing/increasingly loyal membership base and emerging unit growth runway, BJ has the fundamental building blocks of a compelling long-duration consumer staple growth story,” explained Benedict. (See BJ’s Wholesale Financial Statements on TipRanks)   

Benedict increased the price target for BJ stock to $90 from $85 and reiterated a buy rating based on multiple strengths, including a solid balance sheet, free cash flow generation and efforts to enhance assortment. His ratings have been profitable 64% of the time, with an average return of 13.4%.


Medical devices giant Stryker (SYK) has built a solid business over the years through strategic acquisitions and continued innovation in its medical and surgical, neurotechnology, and orthopaedics and spine divisions.

BTIG analyst Ryan Zimmerman recently hosted a fireside chat with Spencer Stiles, group president of Stryker Orthopaedics and Spine business and Jason Beach, vice president of investor relations. He highlighted that orthopedics procedure volumes are benefiting from a backlog that is projected to last about four to six quarters, as patients who postponed care previously are returning.

Zimmerman thinks that “SYK retains its growth leadership position in orthopedics even as competitive robotic systems iterate.” He expects Stryker’s new Mako Knee 2.0 software, the Insignia Hip launch and upcoming robotic launches in shoulder and spine in fiscal 2024 could “support a long and robust growth cycle.”

Zimmerman reiterated a buy rating on Stryker with a price target of $281. The analyst ranks 657 out of more than 8,300 analysts on TipRanks, with a success rate of 45%. Each of his ratings has delivered an average return of 8.9%. (See Stryker Hedge Fund Trading Activity on TipRanks)

Source link

#Top #Wall #Street #analysts #pick #stocks #long #term

Top Wall Street analysts bet on these stocks to brace for a sharp downturn

VMware at the NYSE, Dec. 14, 2021.

Source: NYSE

Investors’ attention has returned to the Federal Reserve after a hot November jobs report last week.

That’s because even though the central bank has pushed interest rates higher, the economy continues to add jobs and wages keep rising. Friday’s report on last month’s payrolls surprised investors and chilled sentiment.

Nevertheless, investors need to keep a longer-term outlook as they decide how to best position their portfolios. To that end, here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a service that ranks analysts based on their track record.


While software company VMware (VMW) reeled from lackluster quarterly results, Monness Crespi Hardt analyst Brian White maintained his positive conviction on the stock.

Importantly, the company will soon be acquired by Broadcom (AVGO). According to the agreement between the companies, VMware shareholders can either cash in their shares at $142.50 per share or choose to exchange their holdings for 0.2520 shares of Broadcom for each share of VMware. However, in all probability, shareholders may end up with a 50-50 split between cash and stock.

This is important, as this deal has enabled VMware to “dodge the 2022 tech apocalypse,” in White’s words, with the stock up 4% in 2022.

Given the pending acquisition, VMware did not issue any guidance. However, White remains bullish on the basis of the shareholder benefit as well as the stable position of VMware in the tech sector.

“VMware’s earnings remain depressed after aggressive investment initiatives and a model transition. At the same time, the current economic and geopolitical environment is daunting, resulting in a more uncertain future, creating a greater allure for large, well-managed, stable, tech companies with benefit from digital transformation, such as VMware,” White theorized.

White is ranked No. 697 among more than 8,000 analysts tracked on TipRanks. The analyst has a record of 55% successful ratings in the past year, with each rating generating average returns of about 8.7%.

Diamondback Energy

Oil and natural gas exploration company Diamondback Energy (FANG) has gained the attention of RBC Capital Markets analyst Scott Hanold after making two significant strategic acquisitions recently. The analyst expects the acquisitions to be accretive to his earnings per share estimates for 2023 and 2024 by 7% to 9%.

Importantly, at a time when almost every company has worrisome near-term prospects, Hanold sees a solid upside to Diamondback’s near-term free cash flows, thanks to its latest acquisition of Permian Basin assets from Lario. (See Diamondback Dividend Date & History on TipRanks)

The analyst is also upbeat about Diamondback’s asset monetization plan, and believes that it will help the company maintain a clean balance sheet even after the two recent acquisitions. “We think FANG will still maintain an adjusted leverage ratio below 1.0x following the close of the two transactions. However, we think the company will progress more to exceed its $500 million asset monetization target with a focus on midstream assets that trade at more robust values in the market,” said Hanold, who reiterated a buy rating and $182 price target on the stock.

Impressively, Hanold holds the 8th position among more than 8,000 analysts on TipRanks, and boasts a 70% success rate. Each of his ratings has generated average returns of 33.7%.

Microchip Technology

The next stock on our list is Microchip (MCHP), a leading manufacturer of embedded control solutions. The company’s exposure to secular growth trends in the end-markets of 5G, artificial intelligence/machine learning, Internet of Things (IoT), advanced driver assistance systems (ADAS), and electric vehicles bode well for the company in the long run.

Recently, Stifel analyst Tore Svanberg recently reiterated a buy rating on MCHP stock and even increased the price target to $80 from $77. (See Microchip Stock Chart on TipRanks)

The analyst believes that Microchip is well positioned to “manage a softer landing relative to peers during broader industry correction,” on the basis of solid near-term backlog visibility, defensive end-market exposure, resilient pricing of proprietary products, etc.

Svanberg stands at No. 41 among more than 8,000 analysts followed and ranked on TipRanks. The analyst also has a solid track record of 65% profitable ratings and average returns of 20.4% for each.

Analog Devices

Analog Devices (ADI) is another stock on Tore Svanberg’s buy list. The manufacturer of high-performance analog, mixed-signal and digital signal processing integrated circuits holds the biggest shares of the data converter and amplifier markets.

“We believe ADI is a formidable high-performance analog/mixed-signal powerhouse with pro forma CY21A revenue of (nearly) $10 billion, and the leading challenger to the current industry heavyweight, TXN (Texas Instruments),” said Svanberg.

Analog Devices also has strong cash flow generating capabilities, which kept Svanberg bullish: The company has generated $3.50 billion in the past 12 months. (See Analog Devices Hedge Fund Trading Activity on TipRanks)

The analyst sees Analog Devices outperforming its peers in the present challenging macroeconomic environment. Based on his observations, Svanberg increased his price target to $195 from $190.


A leading name in the cybersecurity space, CrowdStrike (CRWD) disappointed investors and analysts alike recently with weaker-than-expected guidance. This underscored the vulnerability of the software sector to macroeconomic forces.

Nonetheless, Deutsche Bank analyst Brad Zelnick remained focused on the longer-term prospects of CrowdStrike, calling it one of the three best-positioned security companies to overcome the strong headwinds. (See CrowdStrike Holdings Financial Statements on TipRanks)

Zelnick observed solid traction in large deals and a strong existing customer base, which can support the company through challenging times.

The analyst also observed that despite not being able to deliver on the top-line part of the business, CrowdStrike was consistent in maintaining solid margins, reflecting “the flex/leverage in the business model.”

Although Zelnick lowered the price target to $150 from $230 to account for his lower estimates, the analyst maintained a buy rating after looking beyond the storm.

Interestingly, among more than 8,000 analysts on TipRanks, Zelnick is ranked 128th, having delivered successful ratings 67% of the time in the past year. Moreover, each of his ratings has garnered average returns of 15.10%.

Source link

#Top #Wall #Street #analysts #bet #stocks #brace #sharp #downturn