High Wall Road analysts say they’re shopping for shares like Netflix and Alphabet within the face of renewed market volatility
Source: Texas Instruments | Wikipedia
Volatility has returned to Wall Street. Market movements, which have fluctuated between positive and negative territory over the last five sessions, have been largely tied to updates from ongoing business talks.
Both sides of the gang have been working for months to put in place additional incentive measures, the last one trying to reach an agreement before election day.
“People are digesting the potential for a stimulus bill, and the markets are very cautious about that,” said Ryan Felsman, CommSec senior economist.
Despite all the uncertainties, there are still stocks that can deliver even in turbulent economic times. To find these names, one possible strategy is to follow the stock picks of analysts who get them right time and time again. TipRanks’ analyst forecasting service seeks to identify the top performing analysts on Wall Street based on the success rate and the average return per rating on an annual basis.
Here are the five most popular stocks of analysts right now:
Streaming giant Netflix stocks hit the jackpot this week after the company released its third quarter results on October 20, down 7% in the following session.
While the company exceeded revenue expectations, it missed EPS and global net paid subscriber additions, with the numbers falling $ 0.40 and $ 1.3 million, respectively. For the fourth quarter, NFLX led 6 million net paid additions, 300,000 under the reputation of Wall Street.
Oppenheim-based analyst Jason Helfstein notes that the third quarter results “reflect the extent of the COVID-induced pull-forward”.
However, Helfstein raised its target price from $ 515 to $ 550, indicating an upside potential of 12% from current levels, and reiterated a buy rating on October 21 on the grounds that “NFLX has a dominant content advantage by 2021, which is a price hike should allow “.
The company is at almost full production capacity worldwide and is on track to meet its FY21 content production targets. 50 films have been completed since the outbreak of the pandemic, and another 150 should be completed by the 20 financial year.
“The most important finding is that NFLX is expanding its content trench with almost complete production, while Hollywood studios will not resume production until mid-September,” said Helfstein. Based on this positioning, the analyst believes that NFLX can continue to meet its margin targets for Fiscal Year 21E, with the uptrend possibly being driven by content and marketing leverage and possible price increases.
With a success rate of 74% and an average return of 33.9% per rating, Helfstein is one of the top 10 analysts rated by TipRanks.
Brian White, analyst at Monness, is bullish on Alphabet ahead of its third quarter results release on October 29th. He reiterated his buy recommendation on October 20th and left his forecast for the share price unchanged at USD 1,700 (7% upside potential).
White believes the company is well positioned to beat its third quarter revenue estimate of $ 39.92 billion (down 1% year over year) and EPS guidance of $ 9.43. While he expects total Google Advertising revenue to decrease 10% year over year, Google Cloud is poised to deliver solid performance.
As part of the virtual Launch Night event last month, several new product innovations were presented, which reflect a clearly positive result for togetL. These include a new Chromecast with Google TV experience and voice remote control, a redesigned Nest Audio speaker that is 75% louder and 50% stronger bass than the original Google Home, and the 6.2-inch Pixel 4a (5G ). and 6-inch Pixel 5 smartphones.
However, it should be noted that the FAANG colleagues are subjected to an antitrust investigation on the same day that togetL reports its quarterly figures. Even so, White remains optimistic despite antitrust concerns. The analyst’s revenue forecast for the fourth quarter reflects an increase of 16% compared to the previous quarter and corresponds to the four-year average for the December quarter.
White has more than deserved to be ranked 20th on TipRanks’ Top Performing Analysts list, as evidenced by its 78% success rate and average return of 30.5% per rating.
Wall Street’s top-rated analyst, Piper Sandler’s Brent Bracelin, supports cloud-based enterprise software company Workday. The analyst upgraded the rating from Hold to Buy on October 20. Along with the call, Bracelin set a price target of $ 275 on the stock of $ 248. This new target indicates an upside potential of 23%.
Bracelin has an 83% success rate and an average return of 37.4% per review.
Citing the company’s financial software business, FINS, as a key component of its bullish thesis, the analyst believes the segment could potentially see more than 30% growth in the future. In addition, business-to-business payments presents a significant opportunity that comes from both organic growth and acquisitions.
Bracelin expects the ERP (Enterprise Resource Planning) segment to increase. He estimates that the ERP business could accelerate from 3% in 2020 to 17% in 2022. This would allow WDAY to better compete with SAP and other traditional vendors, according to the analyst.
Although the core HR software segment has slowed, human capital management should continue to benefit from “remote working tailwinds … as the advent of remote working increases the demand for modern employee retention applications,” said Bracelin.
The final result? “Buy Workday before a promising rebound in 2021,” says Bracelin.
Texas Instruments’ strong Q3 report signals a “beat and raise season for the semi-finals,” said Christopher Rolland, an analyst at Susquehanna. To that end, Rolland raised its price target for TXN from $ 180 to $ 185 on October 21, indicating upside potential of 27%. In addition to updating the price target, he stuck to his buy recommendation.
The tech name just released stellar results as well as forward-looking guidance that blew estimates out of the water. Third-quarter revenue of $ 3.82 billion topped Street’s call of $ 3.44 billion, while GAAP earnings per share of $ 1.45 exceeded the consensus estimate of $ 1.28 left lying in the dust. For the fourth quarter, management expects revenues between $ 3.41 billion and $ 3.69 billion, which is above expectations of $ 3.33 billion.
What drove the impressive performance? The company cited strength in automotive and personal electronics (PE) as well as in other end markets.
“While we highlighted strong PC reviews this quarter, TI suggested PE began buffing beyond just PCs (which have been strong since March). While TI has part availability (compared to competitors), PE began to see an upward trend attributed, we also think better. Possibly handsets have also contributed here, “commented Rolland.
The analyst mentions that Huawei only accounted for 2% of sales in the quarter, with Huawei also not being included in the company’s Q4 forecast. Now Rolland considers this to be “risk-free”.
However, the general response to the pressure took the Susquehanna analyst by surprise.
“In short, we consider TI’s results and guidance to be exceptional, but we remain puzzled by the muted response … Regardless, we continue to recognize TXN as the large-cap analog we have with strong competitive advantages emerging vertical integration and catalog width, “said Rolland.
This five-star analyst is rated 78th by TipRanks out of 7,011 Wall Street professionals.
Cyber security software company Check Point has just received the seal of approval from Oppenheimer’s Shaul Eyal. The five-star analyst reiterated its buy recommendation and price target of $ 135 (8% upside potential) on October 22, after delivering better-than-expected Q3 performance on all fronts.
According to Eyal’s checks, sales of $ 509 million were above the consensus estimate of $ 504 million. Earnings per share of $ 1.64 slightly exceeded Street’s forecast of $ 1.53, largely thanks to better-than-expected volume acceleration and consistent improvements in operational leverage.
The bills, which were $ 16.4 million above estimates, show “signs of healthy fundamentals toward 2H20,” according to Eyal. In addition, deferred revenue was $ 1.302 billion “which is a reflection of the accounting strength.”
In addition, during an ongoing transition to subscription services, “accelerated by CHKP’s cloud-driven strategy” initiated in fiscal year 19, “CHKP generated $ 120.2 million in license revenue, beating consensus estimate of $ 115 million. Eyal commented, “The better than expected product performance is positively rated and we await further comments on the Quantum family of appliances.”
“Overall, CHKP is moving well through the pandemic, showing consistent sales growth and EPS performance. Statements and prepaid expenses have a positive impact on 2H20 which supports our view that CHKP is a versatile defensive name in uncertain, volatile times “Eyal concluded.
Eyal was ranked 34th by TipRanks. Its proven track record is supported by its success rate of 72% and average return of 23.7% per review.