In this article, we will take a look at the 10 stocks receiving a massive vote of approval from Wall Street analysts. If you want to see some more stocks on the list, go directly to 5 Stocks Receiving a Massive Vote of Approval From Wall Street Analysts.
Asian stock markets experienced a decline on September 25 due to concerns over China’s economic performance, while the price of crude oil continued to rise, providing a snapshot of the market’s current state. Following a decrease in the S&P 500 on Friday, Asian shares also suffered losses. Particularly noteworthy was the sharp drop in Chinese stocks, which mirrored the broader downward trend in Asian equities on Monday, underscoring an atmosphere of caution among investors. Concurrently, Treasury bond prices inched lower while oil prices climbed for a second consecutive day. Mainland China and Hong Kong both witnessed a drop in their equity benchmarks, with the Hang Seng index plunging by as much as 1.6%. Amid this decline, a Bloomberg Intelligence index tracking Chinese property developers experienced a significant dip of up to 6.4%, putting it on track for its worst trading day in nine months. This confluence of events underscores the fragility of the current economic and financial landscape in the region. The oil market displayed stability as hedge funds increased their bets, reflecting growing optimism about the potential for a renewed rally following a brief pause in the previous week, reported Bloomberg. West Texas Intermediate (WTI) futures witnessed an uptick of up to 0.7% before settling at just above $90 per barrel, indicating a relatively unchanged trading pattern. Hedge funds played a significant role in this development, as they expanded their bullish positions on WTI to levels not seen since February 2022. This surge in optimism was driven by both higher oil prices and a reduction in market volatility. Furthermore, JPMorgan Chase & Co. contributed to the bullish sentiment by offering predictions of an “oil supercycle,” suggesting an extended period of strong performance and price increases in the oil market. This confluence of factors suggests that the oil market is poised for a potential upswing, with investors and analysts increasingly confident in the prospect of tightening supplies driving prices higher.
Credit card companies are experiencing their swiftest rise in losses in nearly three decades, excluding the Great Financial Crisis, according to Goldman Sachs. While losses initially rebounded from their low point in September 2021, they have escalated since the first quarter of 2022 at a rate not seen since the 2008 recession. Goldman Sachs predicts that this trend will continue, with losses currently at 3.63%, up 1.5 percentage points from the bottom, and an anticipated increase to 4.93%. This comes at a time when Americans collectively owe over $1 trillion on their credit cards, an all-time high. What makes this situation unusual is that these losses are accelerating despite the absence of an economic downturn. Historically, three out of five credit card loss cycles were associated with recessions. The two exceptions occurred in the mid-’90s and from 2015 to 2019. Goldman analyst Ryan Nash suggests that the current cycle resembles those non-recessionary periods, where losses increased following robust loan growth and exhibited a similar pace of normalization. Looking back, losses typically peak six to eight quarters after loan growth peaks, indicating that the credit normalization cycle may only be halfway through. This leads to the prediction that losses won’t peak until late 2024 or early 2025 for most issuers. Capital One Financial and Discover Financial Services are identified as having the most downside risk in this scenario, according to Nash.
Meanwhile, across the stock market in the U.S., stocks such as Five9, Inc. (NASDAQ:FIVN) and Eni S.p.A. (NYSE:E) are receiving a massive vote of approval from Wall Street analysts. Check out the complete article to see the details of these and other stocks.
10. Wayfair Inc. (NYSE:W)
Price Reaction after the Upgrade: -1.19 (-1.97%)
On September 22, Wayfair Inc. (NYSE:W), a prominent player in the e-commerce and home goods industry, received an upgrade from Sanford C. Bernstein. While the target price has been adjusted from $60.00 to $65.00 per share, the rating has been shifted from “Underperform” to “Market Perform.” Despite a slight decrease of -2.0% in its stock price, which currently stands at $59.34 per share, this upgrade holds significance for Wayfair Inc. (NYSE:W) and its investors. The transition from an “Underperform” rating to a “Market Perform” rating suggests a more neutral stance on the company’s performance. This upgrade may indicate Sanford C. Bernstein’s belief that Wayfair Inc. (NYSE:W) performance is stabilizing or that it is on track to align more closely with market expectations.
Alphyn Capital Management made the following comment about Wayfair Inc. (NYSE:W) in its second quarter 2023 investor letter:
“Wayfair Inc. (NYSE:W) has endured a tough couple of years, resulting in the stock being out of favor with investors, presenting the opportunity to earn premiums from covered call options. I profitably exited calls sold in Q1 and re-initiated a position following the earnings announcement. The market seemed unmoved by Wayfair’s claim of market share gains, given headline revenue declines of 7.3% for the quarter. However, a business update in June, in which the company disclosed rising order volumes, precipitated a stock price rally, forcing me to close out the calls. Longer term, Wayfair’s scaled presence in online furniture, comprehensive product offering, and prior investments in supply chain infrastructure is well-positioned to capitalize on the industry’s increasing shift to online. Assuming management maintains its recent focus on cost control, Wayfair is on track to return to profitability and reach its target margin of 30%.”
09. Charter Communications, Inc. (NASDAQ:CHTR)
Price Reaction after the Upgrade: -1.61 (-0.36%)
On September 22, Charter Communications, Inc. (NASDAQ:CHTR) received a notable upgrade from Wells Fargo & Company, with the target price adjusted from $450.00 to $550.00 per share. This upgrade also comes with a shift in the rating from “Equal-Weight” to “Overweight,” suggesting a more bullish outlook on the company’s performance. Charter Communications, Inc. (NASDAQ:CHTR) investors may find this news significant despite a minor dip of -0.4% to $445.21 per share following the upgrade announcement. An “Overweight” rating implies that Wells Fargo & Company sees potential for above-average returns in Charter Communications, Inc. (NASDAQ:CHTR), which can be an attractive proposition for investors seeking growth opportunities. This upgrade underscores the confidence in Charter Communications, Inc. (NASDAQ:CHTR) ability to excel within its sector.
Weitz Large Cap Equity Fund made the following comment about Charter Communications, Inc. (NASDAQ:CHTR) in its second quarter 2023 investor letter:
“We added a new, direct position in Charter Communications, Inc. (NASDAQ:CHTR) at an average price in the low $330s per share during the quarter. At that price level, we found the absolute and relative valuation for the broadband company too compelling to ignore. Our combined Charter exposure is 5.3% via holdings of both Liberty Broadband and Charter.”
08. International Paper Company (NYSE:IP)
Price Reaction after the Upgrade: -0.06 (-0.18%)
On September 21, International Paper Company (NYSE:IP), a significant player in the paper and packaging industry, received an encouraging upgrade from Truist Financial. The target price has been adjusted from $30.00 to $43.00 per share, and the rating has transitioned from “Hold” to “Buy.” Despite a minor decrease of -0.2% in its stock price, currently at $34.07 per share, this upgrade carries considerable significance for International Paper Company (NYSE:IP). The shift from a “Hold” to a “Buy” rating reflects Truist Financial’s newfound optimism about the company’s performance. This upgrade suggests that Truist Financial believes International Paper Company (NYSE:IP) is positioned for growth or that it offers an attractive investment opportunity.
Truist Securities’ Michael Roxland foresees International Paper Company (NYSE:IP) thriving in the containerboard market as demand rebounds with destocking coming to an end and inventories balancing. International Paper Company (NYSE:IP) stands out as the preferred investment choice in this sector, boasting greater operating leverage and more growth potential compared to WestRock Company (NYSE:WRK) and Packaging Corporation of America (NYSE:PKG). With demand on the rise and destocking nearing completion, significant growth is expected, especially as International Paper Company (NYSE:IP) anticipates the destocking process to conclude in the third quarter, while many of Packaging Corporation of America (NYSE:PKG) customers have already signaled the end of destocking. International Paper Company (NYSE:IP) EBITDA generation and margin improvement will result from enhanced fixed cost absorption and the elimination of economic downtime rather than relying solely on price increases to absorb new supply in the industry.
Much like the strong endorsement given to Five9, Inc. (NASDAQ:FIVN) and Eni S.p.A. (NYSE:E), Wall Street analysts are offering substantial support for International Paper Company (NYSE:IP).
07. New Jersey Resources Corporation (NYSE:NJR)
Price Reaction after the Upgrade: -0.02 (-0.05%)
On September 21, New Jersey Resources Corporation (NYSE:NJR), a notable player in the energy and utilities sector, received an upgrade from JPMorgan Chase & Co. The target price has been adjusted from $44.00 to $46.00 per share, and the rating has shifted from “Underweight” to “Neutral.” While the stock price currently stands at $42.45 per share with no immediate change, this upgrade is a noteworthy development for New Jersey Resources Corporation (NYSE:NJR) and its investors. The shift from an “Underweight” rating to a “Neutral” rating indicates a more balanced perspective on the company’s performance. This upgrade may reflect JPMorgan Chase & Co.’s assessment that New Jersey Resources Corporation (NYSE:NJR) is moving towards a more stable and predictable performance trajectory. It suggests that the company may have addressed some of the concerns that led to its previous “Underweight” rating.
FPA Queens Road Small Cap Value Fund made the following comment about New Jersey Resources Corporation (NYSE:NJR) in its Q1 2023 investor letter:
“New Jersey Resources Corporation (NYSE:NJR) is a regulated gas utility for Southern New Jersey. The company has slowly and prudently diversified into midstream, solar, marketing and services while continuing to grow the core utility. Shares performed well on the back of successive strong earnings reports and improved guidance.”
06. HealthEquity, Inc. (NASDAQ:HQY)
Price Reaction after the Upgrade: +0.46 (+0.64%)
On September 21, HealthEquity, Inc. (NASDAQ:HQY), a prominent player in the healthcare and financial services industry, received a favorable upgrade from Robert W. Baird. The target price has been raised from $79.00 to $87.00 per share, accompanied by a shift in the rating from “Neutral” to “Outperform.” Despite a modest increase of 0.6% in its stock price, currently at $72.65 per share, this upgrade carries substantial significance for HealthEquity, Inc. (NASDAQ:HQY) and its investors. The transition from a “Neutral” rating to an “Outperform” rating signifies a more bullish outlook on the company’s performance. This upgrade suggests that Robert W. Baird sees HealthEquity, Inc. (NASDAQ:HQY) as a potential outperformer in the healthcare and financial services sector.
In line with the enthusiastic reception seen for companies like Five9, Inc. (NASDAQ:FIVN) and Eni S.p.A. (NYSE:E), HealthEquity, Inc. (NASDAQ:HQY) is also enjoying a resounding vote of confidence from Wall Street analysts.
ClearBridge Select Strategy made the following comment about HealthEquity, Inc. (NASDAQ:HQY) in its Q4 2022 investor letter:
“Our final health care addition was HealthEquity, Inc. (NASDAQ:HQY), which manages health care savings accounts (HSA) and benefits programs for employers. The company’s acquisition of WageWorks, a provider of transit and other employee benefits, offers a big cross-sell opportunity. Its core HSA business should benefit from strong employment growth supporting HSA growth while higher rates allow it to earn higher yields for participants in HSAs and higher management fees for HealthEquity.”
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Disclosure: None. 10 Stocks Receiving a Massive Vote of Approval From Wall Street Analysts is originally published on Insider Monkey.
