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  • Top Wall Street analysts like these dividend stocks for portfolio income

    Top Wall Street analysts like these dividend stocks for portfolio income

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    Even as the major averages have recently hit fresh records, there are plenty of catalysts that could shake things up, including geopolitical tensions and the upcoming U.S. presidential election.

    Investors seeking some stability in their portfolios may want to consider high-quality dividend stocks, especially those with a track record of steady income payments.

    Analysts conduct thorough research of companies’ fundamentals and their ability to pay and increase dividends over the long term.   

    Here are three attractive dividend stocks, according to Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance.

    Enbridge

    Energy infrastructure company Enbridge (ENB) is this week’s first dividend-paying pick. The company moves nearly 30% of North America’s crude oil production and about 20% of the natural gas consumed in the U.S.

    Enbridge has increased its dividend for 29 years. It has a dividend yield of 7.7%.

    Following its recent investor day event, RBC Capital analyst Robert Kwan reiterated a buy rating on ENB stock. The analyst thinks that recent developments, including regulatory approval of the acquisition of the East Ohio Gas Company, would support the market’s confidence in the company’s ability to grow its earnings.

    It is worth noting that East Ohio Gas is the largest of the three utilities (the other two are Questar Gas and the Public Service Company of North Carolina) that Enbridge agreed to acquire from Dominion Energy.

    “Dominion utilities represent the next episode in Enbridge’s series of growth platforms,” said Kwan.

    The analyst highlighted that the company extended its growth targets through 2026 and now expects earnings before interest, taxes, depreciation and amortization growth in the range of 7% to 9% from 2023 through 2026. That compares with the previous growth outlook of 4% to 6% from 2022 to 2025. Additionally, the company anticipates that this forecast will enable it to increase its annual dividend.

    Kwan ranks No. 191 among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 67% of the time, with each generating an average return of 10.2%. (See Enbridge Hedge Funds Activity on TipRanks)

    Bank of America

    Next up is Bank of America (BAC), one of the leading banking institutions in the world. The bank returned $12 billion to shareholders via dividends and share repurchases in 2023.

    The bank announced a dividend of 24 cents per share for the first quarter of 2024, payable on March 29. BAC stock offers a dividend yield of 2.6%.

    Recently, RBC Capital analyst Gerard Cassidy reiterated a buy rating on Bank of America with a price target of $39. The analyst is optimistic about the leadership of chairman and CEO Brian Moynihan, who is helping the bank steadily generate improved profitability through a focus on expenses and solid credit underwriting principles.

    Cassidy also noted that BAC has a solid balance sheet, with a common equity tier 1 ratio of 11.8% and a supplementary leverage ratio of 6.1% as of Dec. 31, 2023.

    “Also, due to its strong capital position and PPNR (pre-tax, pre-provision revenue), it should be capable of paying and increasing its dividend throughout a downturn,” said Cassidy.

    The analyst highlighted the bank’s growing deposit market share, its dominant position in global capital markets, and the stock’s attractive valuation. He expects BAC’s profitability to gain from the increased adoption of its mobile offerings.  

    Cassidy ranks No. 143 among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 62% of the time, with each generating an average return of 14.9%. (See BAC Technical Analysis on TipRanks)

    PepsiCo

    This week’s third dividend pick is snack food and beverage giant PepsiCo (PEP). Last month, the company reported better-than-expected earnings for the fourth quarter, even as its revenue declined and missed analysts’ expectations due to pressure on demand in the North American business.

    Nonetheless, PepsiCo announced a 7% hike in its annualized dividend to $5.42 per share, effective with the dividend payable in June 2024. This increase marked the 52nd consecutive year in which it boosted its dividend payment. PepsiCo currently has a dividend yield of 2.9%.

    Overall, PepsiCo is targeting cash returns to shareholders of about $8.2 billion in 2024, including $7.2 billion in dividends and $1 billion worth of share repurchases.

    On March 18, Morgan Stanley analyst Dara Mohsenian upgraded PepsiCo stock to buy from hold with a price target of $190. The analyst cited two reasons behind an earlier downgrade of the stock – valuation concerns and his opinion that the consensus organic sales growth (OSG) guidance seemed too high.

    However, Mohsenian noted, “Both of these issues have now played out, and we would be aggressive buyers here ahead of a powerful inflection in H2 after PEP bottoms fundamentally in Q1, and returns to above consensus and peer OSG, with PEP’s valuation compression overdone.”

    The analyst named PepsiCo a top pick, contending that the market is not fully pricing in the growth prospects of the company’s international business.

    Mohsenian ranks No. 383 among more than 8,700 analysts tracked by TipRanks. The analyst’s ratings have been profitable 68% of the time, with each generating an average return of 9.2%. (See PepsiCo Stock Buybacks on TipRanks)

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  • Top Wall Street analysts prefer these 3 stocks for long-term growth

    Top Wall Street analysts prefer these 3 stocks for long-term growth

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    Workers install a Nike logo lamp outside the Wukesong Arena in Beijing, August 28, 2019.

    Tingshu Wang | Reuters

    The U.S. stock market started 2024 on a dismal note, but investors will need to look past the short-term uncertainty.

    Rather than worrying about the slow start to the year, investors should focus on adding stocks with attractive long-term prospects to their portfolios.

    With that in mind, here are three stocks favored by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

    Booking Holdings

    This week’s first pick is Booking Holdings (BKNG), an online travel agency. The company is benefiting from strong travel demand despite a challenging macroeconomic backdrop.

    Recently, Tigress Financial Partners analyst Ivan Feinseth reiterated a buy rating on Booking Holdings and increased his price target to $4,285 from $3,855. The analyst thinks that the company is well-positioned to gain from the secular shift in consumer spending trends toward travel and entertainment.

    The analyst expects BKNG to witness higher bookings, driven by the continued strength in demand for travel coupled with the company’s artificial intelligence initiatives. In particular, he anticipates that the company’s AI advancements, including its Connected Trip offering, will bring down costs and enhance operating efficiencies.    

    “BKNG’s strong balance sheet and cash flow will continue to drive ongoing investment in key growth initiatives and the resumption of share repurchases,” said Feinseth.

    Overall, the analyst expects Booking Holdings to generate a higher return on capital, fueled by its dominant market position, solid execution, strong brand equity, diversified global presence and a technologically advanced platform.

    Feinseth ranks No. 253 among more than 8,600 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 10.9%. In addition, see Booking Holdings Insider Trading Activity on TipRanks. 

    Nike

    Athletic apparel and footwear company Nike (NKE) recently reported better-than-anticipated fiscal second-quarter earnings per share. However, the stock declined following the results as the company’s revenue fell short of estimates. Also, Nike lowered its full-year revenue outlook due to increased macro challenges, mainly in China and EMEA (Europe, the Middle East and Africa).

    Despite the mixed results, Baird analyst Jonathan Komp reiterated a buy rating on Nike stock with a price target of $140. The analyst thinks that the reset in NKE shares following the fiscal Q2 print provides a better entry point for investors, given the expected recovery in the company’s margins in fiscal years 2025 to 2027.

    While the revised revenue outlook might trigger a debate about macro versus brand-specific headwinds, the analyst remains bullish on NKE as its $2 billion cost-savings plan, gross margin improvement opportunity, and “focus on scaling new product still provide visibility to mid-teens+ EPS growth in F2025-2027E supporting a more attractive entry at ~25X P/E on F2025E.”

    In his research note, Komp also highlighted Nike’s several other positives, including the company’s brand strength, solid execution, competitive positioning and digital leadership.

    Komp holds the 376th position among more than 8,600 analysts on TipRanks. His ratings have been successful 53% of the time, delivering a return of 13.6%, on average. In addition, see Nike Hedge Funds Trading Activity on TipRanks.

    Micron Technology

    Finally, we move to the semiconductor company Micron Technology (MU), which is one of the largest providers of memory and storage chips in the world. The company recently reported strong results for the first quarter of fiscal 2024 and issued solid guidance.

    The company expects its business fundamentals to improve throughout this year and is optimistic about capturing the growing demand for AI solutions.

    Following the upbeat results, JPMorgan analyst Harlan Sur reaffirmed a buy rating on MU stock and raised the price target to $105 from $90. The analyst thinks that the company’s fiscal first quarter results and better-than-projected guidance for the fiscal second quarter reflect improved demand trends and normalization of excess customer inventories.

    The analyst said that these favorable developments are driving higher prices for DRAM and NAND products across several markets such as smartphones, PCs, Internet of Things (IoT), automotive and the industrial sector. While the demand in data center and enterprise end-markets remains a bit soft, management expects the excess inventory situation among its customers to improve and reach more normal levels during the first half of this year.

    “We believe the stock should continue to outperform through 2024 as the market continues to discount improving revenue/margin/earnings power into CY25,” said Sur, calling MU one of his top semiconductor picks for 2024.

    Sur ranks No. 98 among more than 8,600 analysts tracked by TipRanks. His ratings have been successful 67% of the time, with each delivering an average return of 19.6%. In addition, see Micron Financial Statements on TipRanks. 

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  • Top Wall Street analysts are banking on these stocks for solid returns

    Top Wall Street analysts are banking on these stocks for solid returns

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    The Spotify logo on the New York Stock Exchange, April 3, 2018.

    Lucas Jackson | Reuters

    With markets facing pressure at least in the short term, investors should try to build a portfolio of stocks that can weather the storm and offer long-term growth potential.

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

    Domino’s Pizza

    Domino’s Pizza (DPZ) reported mixed results for the second quarter, with the company blaming a decline in its market-basket pricing to stores and lower order volumes for the shortfall in its revenue compared to analysts’ expectations.

    Nonetheless, BTIG analyst Peter Saleh reiterated a buy rating on Domino’s with a price target of $465 and said that the stock remains his top pick. (See Domino’s Financial Statements on TipRanks) 

    In particular, Saleh expects the company’s Uber Eats partnership, changes in the rewards program, and the launch of its pepperoni Stuffed Cheesy Bread to boost the top line in the fourth quarter and into 2024.

    The analyst noted that the pizza chain’s entire menu will become available to Uber Eats customers at regular menu prices, without any deals or coupons. Interestingly, the company is targeting the higher-income customers on Uber Eats and reserving the discounts and other benefits for its own ordering channels.

    “We expect the improvement in delivery sales, coupled with declining commodities, to translate to healthier unit economics and accelerated domestic development next year and beyond,” said Saleh.

    Saleh ranks No. 331 out of more than 8,500 analysts tracked on TipRanks. Also, 64% percent of his ratings have been profitable, with an average return of 12.9%.  

    Meta Platforms

    Next up is Meta Platforms (META). The social media platform recently delivered upbeat second-quarter results and issued better-than-anticipated guidance for the third quarter, signaling improved conditions in the digital ad market.

    Following the print, Monness analyst Brian White raised his price target for Meta to $370 from $275 and maintained a buy rating, saying that the company’s second-quarter results reflected strong execution and its massive cost-improvement measures.

    The analyst noted that management’s commentary during the earnings call reflected positive vibes, backed by an improving digital ad market and a compelling product roadmap. He highlighted the momentum in Meta’s short-video feature Reels, which is growing at a more than $10 billion annual revenue run rate across apps. He also mentioned the better-than-expected traction in Threads and the company’s significant investments in artificial intelligence.        

    White cautioned investors about regulatory risks and internal headwinds. However, he said that in the long run, “Meta will benefit from the digital ad trend, innovate with AI, and participate in the build-out of the metaverse.”

    White holds the 27th position among more than 8,500 analysts on TipRanks. His ratings have been profitable 67% of the time, with each rating delivering an average return of 20.7%. (See Meta Platforms Stock Chart on TipRanks)

    Spotify

    White is also bullish on audio streaming company Spotify (SPOT). While Spotify’s second-quarter revenue and Q3 2023 guidance missed analysts’ expectations, the analyst contended that results were “respectable” with meaningful year-over-year growth of 27% in monthly active users (MAU) to 551 million.

    Commenting on Spotify’s decision to increase the price of its subscription offerings, White noted that the price hikes will impact most subscribers beginning September, thus having a small impact on the third quarter but contributing meaningfully to the fourth-quarter performance.

    While the analyst acknowledges an intense competitive backdrop, he said that “Spotify is riding a favorable long-term trend, enhancing its platform, tapping into a large digital ad market, expanding its audio offerings, and improving its cost structure.”

    White raised his 2024 estimates and reiterated a buy rating while increasing the price target for SPOT stock to $175 from $160. (See Spotify Blogger Opinions & Sentiment on TipRanks)  

    Microsoft

    Another tech giant in the week’s list is Microsoft (MSFT), which has been making headlines this year due to its generative AI advancements. The company’s fiscal fourth-quarter results topped Wall Street’s estimates. That said, the revenue outlook for the first quarter of fiscal 2024 fell short of expectations.

    Nonetheless, Goldman Sachs analyst Kash Rangan, who ranks 459th among more than 8,500 analysts tracked on TipRanks, remains bullish on MSFT stock. (See Microsoft Hedge Fund Trading Activity on TipRanks)           

    The analyst thinks that in the short term, there might be concerns about when the company’s ramped-up capital investments will pay off. However, he observed that historically, whenever Microsoft increased its capital expenditure in the cloud market, Azure growth rate shot up meaningfully and margins rebounded, driving the stock price higher. 

    With a strong presence across all layers of the cloud stack, Rangan said that Microsoft is well positioned to capture opportunities in several long-term secular trends, including public cloud and SaaS adoption, digital transformation, generative AI and machine learning, analytics and DevOps.

    In line with his bullish stance, Rangan reiterated a buy rating with a price target of $400. He has a success rate of 59% and each of his ratings has returned 10% on average.

    General Motors

    We now drive toward legacy automaker General Motors (GM), which impressed investors with robust growth in its second-quarter revenue and earnings. Additionally, the company raised its full-year outlook for the second time this year.

    Recently, Tigress Financial Partners analyst Ivan Feinseth reaffirmed a buy rating on the stock with a price target of $86, noting the company’s strong execution and the ramp-up of new electric vehicle launches and production.

    The analyst highlighted that the company continues to witness robust demand for its full-size SUVs and pickups, which is driving its revenue and cash flow higher and funding the transition and expansion of its EV production.

    Feinseth called GM’s Ultium platform and supply chain for EV battery production its significant competitive advantage. The analyst is also positive about the company’s recent initiatives to expand its charging network.

    “In addition to the ramp-up of EV production, GM’s ramp-up of high-value software and services as it plans to double company revenue to $275-315 billion by 2030 should drive significant increases in Return on Capital (ROC) and Economic Profit,” the analyst said.     

    Feinseth holds the 215th position among more than 8,500 analysts on TipRanks. His ratings have been successful 61% of the time, with each rating delivering an average return of 12.9%. (See General Motors Insider Trading Activity on TipRanks)

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  • Top Wall Street analysts are upbeat about these dividend stocks

    Top Wall Street analysts are upbeat about these dividend stocks

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    While many growth stocks have recovered this year, investors continue to look for attractive dividend picks that can offer steady income and the potential for long-term capital appreciation.

    Here are five dividend stocks worth considering, according to Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance.

    IBM

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    Tech giant IBM (IBM) recently reported mixed results for the second quarter. While revenue fell short of expectations, the company’s earnings smashed estimates due to improved gross margin.

    IBM is transforming its business and focusing on growth areas like hybrid cloud computing and artificial intelligence. It generated free cash flow of over $3.4 billion and paid dividends worth $3 billion in the first six months of 2023. IBM expects to deliver free cash flow of $10.5 billion for the full year.

    Earlier this year, IBM increased its quarterly dividend by a modest 0.6% to $1.66, marking the 28th consecutive year of dividend hikes. IBM’s dividend yield is about 4.6%.

    Following the results, Stifel analyst David Grossman increased his price target for IBM stock to $144 from $140 and reiterated a buy rating. The analyst slightly raised his 2023 and 2024 estimates based on the organic and inorganic growth in the company’s software business.

    “IBM has been a source of funds YTD and remains most appropriate for the dividend sensitive value investor looking for a defensive market hedge,” said Grossman.

    Grossman is ranked 389th among more than 8,500 analysts tracked by TipRanks. His ratings have been profitable 64% of the time, with each one delivering an average return of 14.4%. (See IBM Blogger Opinions & Sentiment on TipRanks)

    Chord Energy

    Next up is Chord Energy (CHRD), an oil and gas operator with assets in the Williston Basin. The company rewards shareholders through a quarterly base dividend, a variable dividend and share buybacks.

    For the first quarter, Chord declared a total cash dividend of $3.22 per share, including a variable dividend of $1.97 per share.

    RBC Capital analyst Scott Hanold sees the possibility of the company exceeding its 75% minimum shareholder payout if excess cash builds and no other accretive acquisition opportunities arise. Hanold expects Chord to declare a variable dividend of $0.15 per share for the second quarter, along with a base dividend of $1.25 per share and share buybacks in the range of $25 million to $30 million.    

    Ahead of the upcoming results, Hanold lowered his Q2 2023 earnings per share and cash flow per share estimates due to lower benchmark commodity prices, wider price differentials, and lower production. He also reduced his price target for CHRD to $180 from $185 to reflect his new commodity price forecast. 

    Nonetheless, Hanold is bullish on CHRD and reiterated a buy rating on the stock, saying, “The company’s balance sheet is strong and leverage is de-minimis, providing the opportunity to allocate a significant portion of FCF to shareholder returns.”

    Hanold, who ranks 43rd out of more than 8,500 on Tipranks, has a success rate of 63% and each of his ratings has returned 21.4%, on average. (See Chord Energy Hedge Fund Trading Activity on TipRanks)     

    Energy Transfer LP

    Another RBC Capital analyst, Elvira Scotto, is bullish on dividend stock Energy Transfer (ET), a publicly traded limited partnership that operates a vast pipeline network spanning 41 U.S. states.

    On July 25, Energy Transfer announced a quarterly cash distribution of $0.31 per common unit for the second quarter, marking a 0.8% increase compared to the first quarter of 2023. That brings the dividend yield to over 9%. The company is targeting a 3% to 5% growth in its annual distribution.

    Heading into second-quarter results, Scotto expects the performance of midstream companies to be affected by lower commodity prices. Nonetheless, the analyst reiterated a buy rating on Energy Transfer stock with a price target of $17.

    “We believe ET has one of the most attractive integrated asset bases across our midstream coverage universe and view ET as a compelling investment opportunity, trading at a discount to large cap peers on EV/EBITDA and at a FCF [free cash flow] yield of ~14%,” said Scotto.    

    The analyst thinks that ET is well positioned to generate significant rise in cash flows, which, coupled with its solid balance sheet, could drive higher cash returns through increased distributions to unitholders.

    Scotto holds the 53rd position among more than 8,500 analysts on TipRanks. Additionally, 65% of her ratings have been profitable, with an average return of 19.6%. (See Energy Transfer Stock Chart on TipRanks)   

    EOG Resources

    Another energy name this week is EOG Resources (EOG), a crude oil and natural gas exploration and production company. Last year, the company returned $5.1 billion through regular and special dividends, representing 67% of its free cash flow.  

    For the first quarter of 2023, EOG declared a regular quarterly dividend of $0.825 per share, payable on July 31. Moreover, the company repurchased $310 million worth shares in Q1. EOG offers a forward dividend yield of about 2.6%.

    Mizuho analyst Nitin Kumar recently revised his estimates for EOG ahead of its upcoming results, to reflect actual pricing and improving Delaware well productivity based on the data from his firm’s proprietary database. Kumar’s Q2 2023 volume estimates are biased toward the higher end of the outlook range.

    The analyst projects that EOG will deliver free cash flow of $753 million in the second quarter, despite his expectation of a 10% fall in aggregate pricing compared to the first quarter.

    “Compared to the base dividend burden of ~$484mm and over $5bn of cash on hand at March 31, the company should have excess cash to pursue buybacks opportunistically,” said Kumar, who reiterated a buy rating on EOG with a price target of $146.

    Kumar ranks 111th among more than 8,500 analysts on TipRanks. His ratings have been profitable 69% of the time, delivering an average return of 22.5%. (See EOG Insider Trading Activity on TipRanks)  

    Morgan Stanley

    Finally, we will look at a dividend stock in the financial sector: Morgan Stanley (MS). Recently, the global financial services giant reported market-beating second-quarter results, as the strength in its wealth management division offset lower trading revenue.

    Last month, Morgan Stanley announced that it will hike its quarterly dividend per share to $0.85 from $0.775, commencing with the dividend to be declared in the third quarter of 2023. With this hike, Morgan Stanley’s forward dividend yield stands at about 3.6%. The bank’s board also reauthorized a $20 billion multi-year share repurchase program, beginning in the third quarter of 2023.

    The bank’s upbeat second-quarter results prompted BMO Capital analyst James Fotheringham to increase his forward estimates by 1% to 2% and raise his price target for MS stock to $103 from $100. The analyst reiterated a buy rating on the stock, noting that the wealth management division remains the “bright spot.”

    “Following two lackluster quarters for capital markets, MS noted the emergence of ‘green shoots’ across its businesses, supportive of a near-term improvement in deal activity,” said Fotheringham.

    Fotheringham holds the 215th position among more than 8,500 analysts on TipRanks. Additionally, 65% of his ratings have been profitable, with an average return of 12.4%. (See Morgan Stanley Financial Statements on TipRanks)

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  • These stocks have ‘sizeable upside’ and are poised for a second-half breakout, analysts say

    These stocks have ‘sizeable upside’ and are poised for a second-half breakout, analysts say

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  • Here are the top 10 stock analysts of the past decade, according to TipRanks

    Here are the top 10 stock analysts of the past decade, according to TipRanks

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    The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022.

    Nvidia | via Reuters

    TipRanks is celebrating a decade of simplifying investment decisions through its data-driven research tools: Here is a list of the 10 best analysts on Wall Street.

    To come up with this list, TipRanks analyzed every stock recommendation made by analysts in the past decade. The ranking is based on the analysts’ ability to generate returns with stock ratings and price targets.

    TipRanks’ algorithms calculated the average return and statistical significance of each rating, as well as the analysts’ overall success rate. Each rating made during the past decade was measured over a one-year period.

    TipRanks used its Experts Center tool to identify the top ten analysts who have a high success rate, defying the general market trend and outperforming their peers.

    No. 1 Mark Lipacis – Jefferies

    Mark Lipacis ranks No. 1 out of the 8,371 analysts tracked on TipRanks. The five-star analyst has an overall success rate of 73%. Lipacis’ best rating has been on chipmaker Nvidia (NASDAQ:NVDA). His buy rating on NVDA stock from Feb. 8, 2016 to Feb. 8, 2017, generated a return of 374.8%.

    No. 2 Jason Seidl – TD Cowen

    Jason Seidl is second on the list and has a success rate of 73%. Seidl’s top recommendation has been Daseke (NASDAQ:DSKE), which provides flatbed and specialized transportation and logistics solutions. The analyst generated a profit of 327.7% through his buy recommendation on DSKE from May 7, 2020 to May 7, 2021.

    No. 3 Quinn Bolton – Needham

    Quinn Bolton ranks No. 3 on TipRanks’ top 10 analysts list with a success rate of 68%. Bolton’s best rating in the past decade has been on ACM Research (NASDAQ:ACMR), a semiconductor equipment manufacturing company. Through his buy recommendation on ACMR, Bolton generated a return of 608.4% from Aug. 19, 2019 to Aug. 19, 2020.

    No.4 Dan Payne – National Bank

    Dan Payne, in fourth place, has an overall success rate of 69%. Payne’s best call has been on Birchcliff Energy (TSE:BIR), an intermediate oil and natural gas company. His buy recommendation on BIR stock generated a return of 372.9% from Oct. 6, 2020 to Oct. 6, 2021.

    No. 5 Scot Ciccarelli  – Truist Financial

    Scot Ciccarelli bags the fifth position and has a success rate of 74%. Ciccarelli’s best recommendation has been Five Below (NASDAQ:FIVE), a discount store chain. His buy recommendation on FIVE resulted in a return of 249.4% from March 18, 2020 to March 18, 2021.  

    No. 6 Rick Schafer – Oppenheimer

    Sixth-place analyst Rick Schafer has a success rate of 73%. Similar to Lipacis, Schafer’s best recommendation has been NVDA. The analyst generated a profit of 190.7% from Aug. 19, 2019 to Aug. 19, 2020.

    No. 7 Ross Seymore – Deutsche Bank

    Ross Seymore grabs the seventh position and sports a success rate of 77%. Seymore’s best recommendation has been Ambarella (NASDAQ:AMBA), a fabless semiconductor design company. Seymore generated a return of 150% from Nov. 5, 2012 to Nov. 5, 2013.

    No. 8 Patrick Brown – Raymond James

    Patrick Brown ranks No. 8 with a success rate of 75%. The five-star analyst’s top call has been on Saia (NASDAQ:SAIA), a trucking company. Brown generated a profit of 211.2% through his buy call from April 17, 2020 to April 17, 2021.

    No. 9 Colin Rusch – Oppenheimer

    Colin Rusch has the ninth position on the list. The analyst has a 55% overall success rate. Rusch’s best call has been on Westport Fuel Systems (NASDAQ:WPRT), a company engaged in the manufacturing and supply of alternative fuel systems and components. His buy rating on WPRT generated a whopping return of 800% from March 18, 2020, to March 18, 2021.

    No. 10 Shaul Eyal – TD Cowen

    Shaul Eyal ranks No. 10. The analyst has an overall success rate of 68%. Eyal’s best rating in the past decade has been on Cloudflare (NYSE:NET), a cloud-based security solutions provider. Based on his buy recommendation on NET, Eyal generated a return of 384.2% from Feb.14, 2020 to Feb. 14, 2021.

    Bottom line

    Investors can follow top analysts’ views to make informed investment decisions. These analysts generated significant returns from their recommendations in the past decade and have notable success rates.

    See all the analysts who made it to the top 100 list. We will return soon with the top 10 research firms of the past 10 years.

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  • Top analysts are bullish on these five long-term picks

    Top analysts are bullish on these five long-term picks

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    People walk past a store of the sporting goods retailer Nike Inc at a shopping complex in Beijing, China March 25, 2021.

    Florence Lo | Reuters

    Investors seem to be caught amid the chaos caused by the recent banking crisis, persistent macro headwinds and a potential recession. Looking at stocks with appealing long-term potential could help in these times. 

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

    Nvidia

    At the recently held GTC event, chip giant Nvidia (NVDA) discussed its partnerships with leading businesses to advance new artificial intelligence (AI), simulation, and collaboration capabilities across various industries.

    Based on the event, Mizuho analyst Vijay Rakesh inferred that demand for Nvidia’s AI solutions strengthened in the past month, driven by the continued momentum for OpenAI’s ChatGPT and large language models (LLMs) processing. Rakesh highlighted Nvidia’s two new products – L4 tensor core GPU and H100 NVL, which are “focused on improving throughput and power as well as expanding inference.”

    Rakesh expects Nvidia’s DGX Cloud AI supercomputing service to drive additional sales. He also mentioned a “key win” for Nvidia in the auto space, with leading new energy vehicle company BYD expanding the use of the Nvidia Drive Orin platform to a wider range of vehicles. This, along with collaborations with other EV makers, represents a $14 billion automotive design win pipeline for Nvidia.

    Calling Nvidia his top pick, Rakesh reiterated a buy rating and raised his price target to $290 from $230. He sees Nvidia as a “leader in fast-emerging generative AI training and inference as well as dominating gaming and broader AI/accelerated compute, despite near-term investor concerns over consumer and data center slowdown into 2023E.”

    Rakesh holds the 94th position among more than 8,000 analysts followed on TipRanks. His ratings have been profitable 58% of the time, with each rating delivering an average return of 17.3%. (See Nvidia Stock Chart on TipRanks)

    Nike

    From semiconductors, we jump to athletic apparel and footwear maker Nike (NKE). The company recently reported better-than-expected results for its fiscal third quarter (ended Feb. 28). However, Nike’s gross margin contracted significantly due to higher markdowns, which were made to liquidate elevated inventory levels. The margin was also affected by increased input costs and a rise in freight expenses.

    Baird analyst Jonathan Komp, who ranks 290th out of more than 8,300 analysts followed on TipRanks, noted that, while Nike’s inventory was up 16% year over year in the quarter third quarter, it declined about 5% sequentially. He highlighted that the company is now targeting “steeper” liquidation in the fiscal fourth quarter.  

    Komp also noted management’s commentary about the recovery in greater China. The analyst sees strong margin expansion in the next fiscal year helped by an expected recovery from the “transitory impacts” on gross margin and expansion of the direct-to-consumer mix. 

    Komp reiterated a buy rating on Nike and increased his price target to $138 from $130. “NKE remains attractive given positive brand momentum and competitive positioning, high operating margin (low earnings sensitivity), and reasonable valuation (NTM P/E premium vs. S&P +82% compared to +71% five-year average),” the analyst wrote.

    Komp has a success rate of 54%, and each of his ratings has returned 14.1% on average. (See Nike Insider Trading Activity on TipRanks)

    Lululemon

    Another athletic play on our list is Lululemon (LULU). This week, the company impressed investors with upbeat results for the fourth quarter of fiscal 2022 (ended January 29, 2023) and solid guidance. However, the quarter’s margins were impacted by markdowns.

    Nonetheless, management expects inventory growth to continue to moderate in the first quarter of fiscal 2023 and to deliver robust gross margin expansion fueled by lower airfreight. (See Lululemon Hedge Fund Trading Activity on TipRanks)

    Following the print, Guggenheim analyst Robert Drbul increased his price target for Lululemon stock to $440 from $400 and reiterated a buy rating, saying the company remains his “favorite growth story in 2023.” The analyst thinks demand for Lululemon’s merchandise remains solid, noting that concerns about competitive pressures from emerging athletic brands seem “overestimated.”

    The analyst expects Lululemon to benefit from China reopening. He anticipates the significant growth potential in the region to help the company achieve its target to quadruple international revenues by 2026. He also highlighted limited seasonality in Lululemon’s offerings, “virtually no wholesale exposure,” and a strong e-commerce business.

    “We also see ample runway for growth in men’s, digital, and international, while LULU continues to deliver strong growth in its “core” (women’s, stores, and North America),” said Drbul. The analyst ranks 439th among more than 8,000 analysts followed on TipRanks. Additionally, 61% of his ratings have been profitable, with an average return of 7.4%.

    Wynn Resorts

    Casino operator Wynn Resorts (WYNN) has “healthily outperformed” the gaming sector and broader market so far in 2023, noted Deutsche Bank analyst Carlo Santarelli. The analyst remains bullish on the stock and raised his price target to $134 from $128, as he continues to see a “meaningful upside.”

    The drivers behind Santarelli’s bullish view include an “inexpensive” valuation, continued sequential increase in Macao visitation and stronger-than-anticipated Macao margins due to expense reductions and a favorable gaming floor revenue mix. (See Wynn Blogger Opinions & Sentiment on TipRanks)

    Santarelli is also optimistic about the prospects of the company’s UAE project — an integrated resort that will be located on the man-made Al Marjan Island in Ras Al Khaimah, UAE. The analyst expects the company to provide more details about this project in the coming months, driving investors’ attention to the new growth opportunity.

    Santarelli raised his estimates for Wynn, citing “Macau QTD trends, continued strength in Las Vegas, and steady performance at Encore Boston Harbor.” Santarelli holds the 27th position among more than 8,000 analysts on TipRanks. He has a success rate of 64%, with each of his ratings generating an average return of 20.6%.

    Dave & Buster’s Entertainment

    Restaurant and entertainment chain Dave & Buster’s (PLAY) delivered strong fiscal 2022 fourth-quarter (ended Jan. 29) results, driven by robust comparable walk-in sales growth and the continued recovery in the special events business.  

    Management stated that quarter-to-date comparable store sales for the fiscal 2023 first quarter were in the flat to very low-single-digit negative range. Jefferies analyst Andy Barish feels that this trend reflects “some noise” due to the post-Omicron demand surge seen in the prior-year quarter and a spring break shift.

    Nonetheless, Barish noted that the underlying momentum experienced in January has continued and sales trends are higher compared to the pre-pandemic period. The analyst expects strength over the near term, as “consumer appetite for experiences” looks solid, driven by modest pricing compared to the industry average, promotional offers and other factors.

    Barish reiterated a buy rating on Dave & Buster’s with a price target of $60, concluding, “PLAY remains among best positioned to drive upside and accel growth the next few years, even in a recession.”

    Barish is ranked No. 465 among more than 8,000 analysts followed on TipRanks. His ratings have been profitable 58% of the time, with each rating delivering an average return of 9%. (See PLAY Financial Statements on TipRanks) 

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  • Top Wall Street analysts pick these stocks to climb 2023’s wall of worry

    Top Wall Street analysts pick these stocks to climb 2023’s wall of worry

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    The Spotify logo hangs on the facade of the New York Stock Exchange with U.S. and a Swiss flag as the company lists its stock with a direct listing in New York, April 3, 2018.

    Lucas Jackson | Reuters

    Coming off a week that was packed with corporate earnings and economic updates, it is still difficult to determine whether a recession can be avoided this year.

    Investing in such a stressful environment can be tricky. To help with the process, here are five stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performances. 

    Apple

    Ahead of Apple’s (AAPL) December quarter results, due out on Feb. 2, investors are fairly aware of the challenges that the company faced during the period. From production disruptions in the iPhone manufacturing facility at Zhengzhou in China to higher costs, Apple’s first quarter of fiscal 2023 has endured all. Needless to say, the company expects a quarter-over-quarter growth deceleration.

    Nonetheless, Monness Crespi Hardt analyst Brian White expects the results to be in line with, or marginally above, Street expectations. The analyst believes gains in Services, iPad and Wearables, Home & Accessories revenue could be a saving grace.

    Looking ahead, White sees pent-up demand for iPhones come into play in the forthcoming quarters, once Apple overcomes the production snags. (See Apple Stock Investors’ sentiments on TipRanks)

    The analyst feels that the expensive valuation of approximately 27 times his calendar 2023 earnings estimate for Apple is justified.

    “This P/E target is above Apple’s historical average in recent years; however, we believe the successful creation of a strong services business has provided the market with more confidence in the company’s long-term business model,” said White, reiterating a buy rating and $174 price target.

    White holds the 67th position among almost 8,300 analysts followed on TipRanks. His ratings have been profitable 63% of the time and each rating has generated a 17.7% average return.

    Spotify

     Audio streaming subscription service Spotify (SPOT) is also among the recent favorites of Brian White.

    “Spotify is riding a favorable long-term trend, enhancing its platform, tapping into a large digital ad market, and expanding its audio offerings,” said White, reiterating a buy rating and $115 price target.

    The analyst does acknowledge some challenges that await Spotify this year but remains optimistic about its margin improvement plans and several favorable industry developments. While it may be tough to attract new premium subscribers, while facing continued pressure from a lower digital ad spending environment, Spotify should benefit from ad-supported monthly active users (MAUs) this year. (See Spotify Stock Chart on TipRanks)

    White is particularly upbeat about the waning mobile app store monopolies, after the European Union passed the Digital Markets Act last year. The act will be imposed from May 2023. One of the benefits for Spotify will be the ability to promote its cheaper subscription offers. Now, it can make the offers available outside Apple’s iPhone app. (This had been a challenge, as Apple previously would allow it to only promote its subscriptions through iPhone app.)

    CVS Health Corp.

    CVS Health (CVS), which operates a large retail pharmacy chain, has been on Tigress Financial Partners analyst Ivan Feinseth‘s list in recent weeks. The analyst reiterated a buy rating and a $130 price target on the stock.

    The company’s “consumer-centric integrated model” as well as its increasing focus on primary care should help make health care more affordable and accessible for customers, according to Feinseth. CVS bought primary health-care provider Caravan Health as part of this focus. Moreover, the impending acquisition of Signify Health “adds to its home health services and provider enablement capabilities.”

    The analyst also believes that the ongoing expansion of CVS’s new store format, MinuteClinics and HealthHUBs, will increase customer engagement and thus, continue to be a key growth catalyst. (See CVS Health Blogger Opinions & Sentiment on TipRanks)

    Feinseth is also confident that CVS’s merger with managed healthcare company Aetna back in 2018 created a health-care mammoth. Now, it is well positioned to capitalize on the changing dynamics of the health-care market, as consumers gain more control over their health-care service expenditures.

    Feinseth’s convictions can be trusted, given his 208th position among nearly 8,300 analysts in the TipRanks database. Apart from this, his track record of 62% profitable ratings, with each rating delivering 11.8% average returns, is also worth considering.

    Shake Shack

    Fast food hamburger chain operator Shake Shack (SHAK) has been doing well both domestically and overseas on the back of its fast-casual business concept. BTIG analyst Peter Saleh has a unique take on the company.

    “Shake Shack is the preeminent concept within the better burger category and the rare restaurant chain whose awareness and brand recognition exceed its actual size and sales base,” said Saleh, who reiterated a buy rating on the stock with a $60 price target. (See Shake Shack Hedge Fund Trading Activity on TipRanks)

    On the downside, the analyst points out that the expansion of services outside New York has weakened Shake Shack’s margin profile by generating low returns per unit and exposing the company to greater sales volatility. However, margins seem to have bottomed, and the analyst expects profitability to gain momentum over the next 12-18 months. A combination of higher menu prices and deflation of commodity costs are expected to push restaurant margins up to mid-teen levels.

    In its preliminary fourth-quarter results, management at Shake Shack mentioned that it plans to tighten its hands with general and administrative expenses this year, considering the macroeconomic uncertainty. This “should prove reassuring for investors given the heightened G&A growth (over 30%) of the past two years.”

    Saleh has a success rate of 64% and each of his ratings has returned 11.7% on average. The analyst is also placed 431st among more than 8,000 analysts on TipRanks.

    TD Synnex

    Despite last year’s challenges, IT distributor and solutions aggregator TD Synnex (SNX) has benefited from a steady IT spending environment amid the consistently high digital transformation across industries. The company recently posted its fiscal fourth-quarter results last week, where earnings beat consensus estimates and the dividend was hiked.

    Following the results, Barrington Research analyst Vincent Colicchio dug into the results and noted that rapid growth in advanced solutions and high-growth technologies were major positives. Even though the analyst reduced his fiscal 2023 earnings forecast due to an expected rise in interest expense, he remained bullish on SNX’s efforts to achieve cost synergies by the end of the current fiscal year. (See TD Synnex Dividend Date & History on TipRanks)

    Looking forward, the analyst sees a largely upward trend in growth, albeit a few hiccups. “The key growth driver in the first half of fiscal 2023 should be advanced solutions and high-growth technologies and in the second half should be PCs and peripherals and high-growth technologies. We expect Hyve Solutions revenue growth to slow in fiscal 2023 and slightly rebound in fiscal 2024 versus fiscal 2022 growth,” observed Colicchio, reiterating a buy rating and raising the price target to $130 from $98 for the next 12 months.

    Importantly, Colicchio ranks 297th among almost 8,300 analysts on TipRanks, with a success rate of 61%. Each of his ratings has delivered 13% returns on average.

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  • Top Wall Street analysts like these stocks in 2023

    Top Wall Street analysts like these stocks in 2023

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    We step into the new year with a largely unchanged macroeconomic backdrop and a recession waiting for us. However, investors can maintain a healthy portfolio if they keep a longer-term view, shutting out all the noise.

    In that context, we kickstart 2023 with five stocks picked by Wall Street’s top analysts, according to TipRanks, a service that ranks analysts based on their past performance.

    STAAR Surgical

    Medical technology company STAAR Surgical (STAA) is benefiting from solid demand for refractive corrections (surgical corrections for eye conditions) across the world. Moreover, BTIG analyst Ryan Zimmerman believes that favorable demographic trends, including an aging population and a rising number of myopia cases, are also driving demand for STAAR’s products.

    Earlier in December, the company announced that its president and chief executive officer, Caren Mason, is retiring by the end of the month. Mason will be succeeded by Thomas Frinzi, who has earlier served as head of Johnson & Johnson’s vision unit and president of Abbott Medical Optics. Zimmerman said the appointment of Frinzi can appease investors, thanks to having 40 years of experience in medical optics. (See Staar Surgical Hedge Fund Trading Activity on TipRanks)​

    The analyst is also upbeat about the demand environment for STAAR’s products across different time periods. “Next-gen lenses to new markets should drive near-term growth, while expanded indications, presbyopia, and cataract companion drive long-term growth,” noted Zimmerman, who reiterated a buy rating on the stock with a price target of $80.

    Zimmerman ranks No. 861 among more than 8,000 analysts tracked on TipRanks. Moreover, 44% of his ratings have been profitable, with each rating generating 7.2% average returns.

    Papa John’s 

    Quick-service pizza chain Papa John’s (PZZA) stock has depreciated significantly this year due to challenges in the U.K. and inflationary pressures, but its longer-term outlook remains resilient. BTIG analyst Peter Saleh noted that during these times when inflation is high and a recession is on the horizon, lower-income consumers are spending less on eating out. Therefore, Papa John’s value offerings like Papa Pairings are attracting new lower-income guests.

    After surveying more than 1,000 Papa John’s customers, Saleh found that only a low-single-digit percentage of them find the menu prices too expensive, even after the company raised prices by 3-4 times in 2022. Encouraged by these trends, the analyst mildly raised his 4Q22 domestic same-store sales expectations. (See Papa John’s International Insider Trading Activity on TipRanks)

    Saleh reiterated a buy rating on the stock with a price target of $100. “We believe new leadership has the right strategies in place to engineer a turnaround; these efforts have already translated into better operating efficiency, stronger franchisee alignment, and improved net unit growth, and we expect these will continue to build in 2022/23. We see several near- and long-term levers to drive shareholder value that have started to unfold and will allow Papa John’s to again outperform peers, leading to our Buy rating,” said Saleh.

    Saleh has a 524th position among more than 8,000 analysts on TipRanks. Each of his 59% successful ratings has garnered an average return of 10.3%.

    Alphabet

    The next on our list is Monness Crespi Hardt analyst Brian White’s stock pick, Alphabet (GOOGL), which has proved to be more resilient than its peers in the digital ad market this year. Moreover, the company could mitigate impact on its business with the help of strong growth in Google Cloud.

    White said as “a challenging year nears an end, but harrowing headwinds persist in 2023,” Alphabet has started to reduce its expenditures to be better prepared. (See Alphabet Class A Stock Chart on TipRanks)

    “In our view, Alphabet is well positioned to capitalize on the long-term digital ad trend, participate in the shift of workloads to the cloud, and benefit from digital transformation,” said White, justifying his stance on Alphabet’s prospects for 2023. He reiterated a buy rating on the stock with a price target of $135.

    The analyst noted that Alphabet has delivered 23% sales growth per annum and 27% operating profits over the last five years. Along with a dominant position in the search engine area with leadership in digital advertising, White believes that the stock should trade at a healthy premium to the technology sector in the long run.

    White, a 5-star analyst on TipRanks, stands at No. 71 among more than 8,000 tracked analysts. Moreover, 62% of his ratings have been profitable, with each rating delivering an average return of 17.2%.

    Verizon

    Wireless and wireline communications services Verizon (VZ) is another name on our top-5 list this week. One of the picks of 5-star analyst Ivan Feinseth of Tigress Financial Partners, Verizon is well-positioned to gain from ongoing 5G wireless subscription growth as well as new growth opportunities in fiber and fixed broadband connectivity.

    Feinseth expects that its “size advantage” and prospects in the rapid deployment of high-speed 5G connectivity in the U.S. should fuel further growth in wireless subscribers. (See Verizon Stock Investors sentiment on TipRanks)

    Verizon boasts of a strong balance sheet and cash flow generating abilities that allow the company to invest in spectrum expansion and other growth initiatives. Moreover, a healthy financial position helps the company maintain a compelling dividend yield and consistent dividend hikes.

    “VZ’s expected generation of $54.53 billion in Economic Operating Cash Flow (EBITDAR) over the near-term provides it with significant cash to fund its 5G high-speed network rollout, spectrum purchases, other growth initiatives, strategic acquisitions, and ongoing dividend increases,” said Feinseth, who holds the 283rd position among more than 8,000 analysts on TipRanks.

    The analyst reiterated a buy rating and price target of $64 (adjusted lower from $68) on VZ stock. 

    Remarkably, 58% of Feinseth’s ratings have generated profits, and each rating has brought a 10.3% average return.

    MongoDB

    General purpose database platform provider MongoDB (MDB) is among Feinseth’s buy stocks that we think is a great addition to portfolios this week. Feinseth said that the company’s “industry-leading open-source database software structure” is attracting new customers.

    Despite lowering his price target to $365 from $575, the company is well-poised to profit from gradual increase in enterprise IT spending when companies adopt MongoDB’s highly customizable and scalable Database as a Service, Feinseth said. (See MongoDB Website Traffic on TipRanks)

    “The rapid acceleration of hosted and hybrid cloud migration is driving increasing demands for scalable, customizable, and developer-friendly database architectures that will continue to drive growth in MDB’s subscription-based revenue model. This will drive an ongoing acceleration in Business Performance trends, which will drive an increasing Return on Capital (ROC), leading to significant gains in Economic Profit and long-term shareholder value creation,” said Feinseth, justifying his stance on MDB stock.

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