The S&P 500 index touched an all-time high this week as Mark Zuckerberg’s company’s 20-day streak finally came to an end, adding $320 billion to the company’s market cap. The semiconductor stocks once again drove the broader market. However, as the rally cools down, the focus is shifting back to Donald Trump’s tariffs. Automobiles, pharmaceuticals, and semiconductor companies are expected to be hit in the next wave of tariffs which has forced investors to rethink their strategies.
As investors and analysts try to figure out where the market is headed, some companies are more likely to go up in share price than others. We looked through the recent analyst upgrades and shortlisted 10 companies that are likely to go up according to analysts. We also looked at the factors driving this analyst optimism.
To come up with the list of 10 stocks that analysts think will go up, we only considered stocks with a market cap of at least $1 billion that were upgraded this week.
10. Altice USA, Inc. (NYSE:ATUS)
Altice USA, Inc. (NYSE:ATUS) is a video and broadband communications services provider under the Optimum brand name. The company offers telephony, broadband, video, and mobile services to business and residential customers. The stock was upgraded from Market Perform to Outperform with a price target of $3.5, mainly due to the management’s strategic stance.
The company’s management is making some organizational changes that will help it improve customer care and reach more low-income customers. It is expected that the company will be able to slow down subscriber losses and return to growth:
We believe the visibility on those changes, along with new initiatives this year, can show tangible results in the next 18 months.
The stock is already up 19% this year so far, despite an earnings miss just a week ago. The company reported an EPS of -$0.12, missing the analyst estimates by $0.16. Notably, the news and advertising revenue grew 23% YoY in the fourth quarter.
9. CNX Resources Corporation (NYSE:CNX)
CNX Resources Corporation (NYSE:CNX) operates as an independent natural gas and midstream company that acquires, develops, produces, and explores natural gas properties. It operates through Coalbed Methane (CBM) and Shale segments. The company produces and supplies pipeline-quality natural gas mainly to wholesalers. Raymond James analysts upgraded the company from Underperform to Market Perform.
The analysts expect that the company will benefit from the positive industry trend, considering its optimistic natural gas outlook. Their main concern with CNX is that its hedging approach may limit its upside potential in an improving natural gas market. However, he believes that the company will still reap benefits from the industry-wide growth if its strong natural gas outlook turns out to be true.
Though the company may show slower growth than its market competitors having greater exposure to natural gas, the analysts have upgraded the rating of the stock. They anticipate the company to perform in line with the overall market, supported by growing cash flows due to increasing natural gas prices.
