In this article, we will take a look at the 10 stocks getting a huge vote of confidence from Wall Street analysts. If you want to see some more stocks on the list, go directly to 5 Stocks Getting a Huge Vote of Confidence From Wall Street Analysts.
Stocks are heading into a challenging week, with several significant events on the horizon. These include Federal Reserve Chair Jerome Powell’s forthcoming speech at a Fed symposium in Wyoming and NVIDIA Corporation (NASDQ:NVDA) earnings scheduled to be released on August 23. Nvidia’s projection of strong revenue growth in May was pivotal in driving the artificial intelligence rally that has propelled the S&P 500 Index’s approximately 14% climb this year. Even though historical data suggests that the S&P 500 usually sees an increase in the week following the Fed symposium, options traders continue adding PUT options as a precaution against potential declines. Gold prices held above five-month lows on August 21 as investors turned their attention to the Jackson Hole central bankers’ meeting. Spot gold increased 0.1% to $1,889.39 per ounce, with U.S. gold futures rising to $1,918.10. The focus is on U.S. Federal Reserve Chair Jerome Powell’s upcoming speech, discussing whether elevated inflation justifies higher long-term equilibrium interest rates.
Goldman Sachs has lowered its China stock targets due to renewed concerns about the property sector, marking the second reduction in three months, reported Bloomberg. Economic pressures have led to fresh revisions in profit expectations. According to Goldman Sachs, Chinese stocks are expected to stabilize in a lower trading range than previous forecasts. This adjustment reflects a cautious approach until Beijing introduces more robust policy measures to address the risk of a property market decline. The bank has reduced its full-year earnings-per-share growth estimate for the MSCI China Index from 14% to 11%, and the 12-month index target has been revised down from 70 to 67, implying a 13% increase from the Friday closing level. On the oil front, prices have climbed for a third consecutive day due to indications of a tightening physical market and a pause in the dollar’s recent surge. These factors have counterbalanced the growing concerns about demand in China and the US. Brent, the global benchmark, has surpassed $85 per barrel and has increased by over 2% since the previous Wednesday’s closing. The oil market’s upward momentum has been propelled by supply constraints enforced by major OPEC+ players Russia and Saudi Arabia since late June, while US crude inventories have declined to their lowest levels since January.
Meanwhile, across the stock market in the U.S., stocks such as Lumentum Holdings Inc. (NASDAQ:LITE), Itron, Inc. (NASDAQ:ITRI), and American Woodmark Corporation (NASDAQ:AMWD) are getting a huge vote of confidence from the Wall Street analysts. Check out the complete article to see the details of these and other stocks.
10. Franco-Nevada Corporation (NYSE:FNV)
Price Reaction after the Upgrade: 0.00 (0%)
On August 18, Franco-Nevada Corporation (NYSE:FNV) was given an upgraded recommendation from Stifel, now rated as a “Buy” rather than a “Hold,” driven by the positive impact of the Cobre Panama deal, which has alleviated concerns. Despite the limited movement in Franco-Nevada Corporation (NYSE:FNV) stock on Friday, this upgrade has sparked interest in the market. Stifel has set a price target of C$215 for the stock, highlighting the growth potential. The rationale behind this upgrade lies in the recent retraction of Franco-Nevada’s valuation, creating an attractive opening for investors to enter the market.
The recent development in Franco-Nevada Corporation (NYSE:FNV) journey is the Cobre Panama deal, which has played a pivotal role in reshaping the perceptions of the company’s prospects. This deal has effectively addressed and lifted the overhang of uncertainties that previously surrounded the stock. The removal of this overhang has been viewed positively by Stifel, leading to their decision to upgrade the stock’s rating.
09. Marvell Technology, Inc. (NASDAQ:MRVL)
Price Reaction after the Upgrade: +0.03 (+0.05%)
On August 18, B. Riley, a prominent financial institution, upgraded Marvell Technology, Inc. (NASDAQ:MRVL) rating from “Neutral” to “Buy,” signaling a shift in their outlook on the company’s prospects. This upgrade comes with insightful observations regarding the anticipated surge in growth driven by artificial intelligence (AI). As part of this upgrade, B. Riley has also revised their price target for Marvell Technology, Inc. (NASDAQ:MRVL), increasing it from $60 to $75. The decision to upgrade Marvell Technology, Inc. (NASDAQ:MRVL) rating reflects B. Riley’s recognition of the company’s potential to thrive in the current technological landscape. With AI poised to play a pivotal role in shaping industries and markets, Marvell Technology, Inc. (NASDAQ:MRVL) stands to benefit from the expected wave of growth propelled by AI-driven advancements. This strategic move by B. Riley signifies their confidence in Marvell Technology’s capabilities to leverage AI technologies effectively and capitalize on emerging opportunities.
The noteworthy aspect of this upgrade is the accompanying increase in the price target for Marvell Technology, Inc. (NASDAQ:MRVL). By raising the price target from $60 to $75, B. Riley is essentially forecasting that the company’s stock value has the potential to reach higher levels. This adjusted price target reflects B. Riley’s assessment of Marvell Technology’s ability to generate value, capture market share, and potentially outperform previous expectations.
Baron Opportunity Fund made the following comment about Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2023 investor letter:
“We took advantage of weakness to purchase shares of Marvell Technology, Inc. (NASDAQ:MRVL), a leading supplier of infrastructure semiconductor solutions that enable the rapid and efficient movement of data throughout the broader data economy, from the data center core to the network edge. Through both organic development and acquisitions led by CEO Matt Murphy since he took over in 2016, Marvell has built a portfolio of market-leading products and IP across computing, networking, security, electro-optics, and storage. Consequently, the company is a critical partner for hyperscale cloud service provider, data center, enterprise networking, carrier infrastructure, consumer, and automotive/industrial end-market customers. Marvell is targeting 15% to 20% average revenue growth through the semiconductor cycle in the coming years, largely driven by secular trends and company-specific product innovations within the cloud, 5G, and automotive end markets. We believe Marvell can deliver on or exceed this target because, among other growth opportunities, its market-leading optical products are critical to delivering increasing data transmission speeds required by hyperscale customers in AI training and inference. At the same time, the company is simultaneously ramping up a custom silicon business working directly with hyperscale partners. Given the dislocation in the stock on near-term cyclical concerns, we believe we paid an attractive price for the long-term growth of this industry-leading company.”
08. Stanley Black & Decker, Inc. (NYSE:SWK)
Price Reaction after the Upgrade: +0.23 (+0.26%)
On August 18, Zelman & Associates, a highly regarded firm known for its expert stock analysis, made a pivotal adjustment in their assessment of Stanley Black & Decker, Inc. (NYSE:SWK). In their latest report, the firm upgraded its rating from “hold” to “buy,” marking a notable shift in their outlook on Stanley Black & Decker, Inc. (NYSE:SWK) trajectory. The transition from a “hold” rating, which typically signifies a more cautious stance, to a “buy” rating, which implies confidence in the company’s performance, underscores the firm’s belief in the company’s ability to seize opportunities and enhance shareholder value.
Appleseed Fund made the following comment about Stanley Black & Decker, Inc. (NYSE:SWK) in its Q1 2023 investor letter:
“During the most recent quarter, Appleseed Fund added three new equity holdings: Medtronic (MDT), Stanley Black & Decker, Inc. (NYSE:SWK), and Synovus Financial (SNV). Stanley Black & Decker is the world’s largest tool manufacturer. It produces power tools, hand tools, storage, digital tool solutions, lifestyle products, outdoor products, engineered fasteners, and other industrial equipment. 2022 was quite a forgettable year for the Company with its stock price falling by roughly 60%. Due to supply chain issues, bloated inventories, inflationary pressures, and weaker demand, the Company badly missed its original 2022 guidance. With recessionary fears, waning earnings momentum, a more elevated leverage profile, and reliance on the U.S. construction market, it is of no surprise how poorly the stock price behaved last year. In our view, the sell-off has been excessive with the stock price trading near March 2020 pandemic lows and at levels otherwise not seen since early 2014. We view the stock at washed-out levels with a favorable profile going forward.”
07. Globe Life Inc. (NYSE:GL)
Price Reaction after the Upgrade: +0.49 (+0.44%)
In a notable move on August 18, Morgan Stanley upgraded Globe Life Inc. (NYSE:GL) rating from “Underweight” to “Equalweight,” signifying a shift in their perspective on the company’s stock. This shift was motivated primarily by a reevaluation of the company’s valuation. The decision to upgrade Globe Life Inc. (NYSE:GL) rating from “Underweight” to “Equal-weight” reflects Morgan Stanley’s revised view of the company’s investment potential. “Underweight” often suggests that a company’s stock is perceived as less favorable or promising than other investment options. On the other hand, the upgrade to “Equal-weight” suggests that Morgan Stanley now considers Globe Life’s stock to be on more even ground in terms of investment attractiveness.
Morgan Stanley’s rationale for this upgrade primarily revolves around valuation considerations. Valuation is crucial in determining a stock’s attractiveness as an investment opportunity. By revisiting their valuation models and considering various market factors, Morgan Stanley likely concluded that Globe Life Inc. (NYSE:GL) stock had become more fairly valued or potentially undervalued than their previous assessment. In conjunction with the upgrade, Morgan Stanley also assigned a price target of $131 for Globe Life’s stock. This price target represents Morgan Stanley’s projection for where the stock price could reach within a specific timeframe. The fact that Morgan Stanley has attached a price target to their assessment underscores their confidence in their upgraded perspective and provides investors with a quantitative benchmark to consider.
06. Portland General Electric Company (NYSE:POR)
Price Reaction after the Upgrade: +0.50 (+1.15%)
On August 18, Guggenheim analyst Shahriar Pourreza upgraded Portland General Electric Company (NYSE:POR) rating from “Neutral” to “Buy,” signifying a substantial shift in their perspective on the stock’s potential. Shahriar Pourreza’s decision to upgrade Portland General Electric Company (NYSE:POR) rating from “Neutral” to “Buy” indicates that Guggenheim now views the company’s stock as a more attractive investment option. The transition from a “Neutral” rating, which suggests a relatively balanced view, to a “Buy” rating implies Guggenheim’s confidence in the company’s ability to deliver favorable returns and capitalize on opportunities. Guggenheim has also set a price target of $48 for Portland General Electric Company (NYSE:POR) stock in conjunction with the upgrade. This price target is a quantitative projection of where Guggenheim believes the stock’s price could reach.
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Disclosure: None. 10 Stocks Getting a Huge Vote of Confidence From Wall Street Analysts. is originally published on Insider Monkey.
