The US market performance in the last week was quite bullish, with the S&P, DOW, and NASDAQ boasting weekly gains of 3.71%, 3.73%, and 3.84% respectively. The week marked the last full week of the outgoing Democratic government, with Donald Trump set to be sworn in early next week.
Just like the last time he became President, Donald Trump is set to make some drastic changes once he takes over. His energy policy and stance on crypto will continue to be of focus for most traders. During the outgoing week, a lot of companies received the backing of Wall Street analysts, among them quite a few energy and automobile companies.
We looked at a few of those companies that received a boost from analysts this week. To come up with the list of 10 stocks that received analyst approval this week, we only considered companies with a market cap of at least $1 billion.
10. First Solar Inc. (NASDAQ:FSLR)
First Solar Inc. is a Photovoltaic (PV) solar energy solutions provider worldwide. The company’s advanced thin film semiconductor technology offers environment-friendly solar panels. It is a leading CdTe (cadmium telluride) module supplier and the only American Company among the top 10 largest manufacturers of solar panels in the world. The company received an upgrade from Neutral to Buy with a target price of $274.
Bloomberg Intelligence analyst Rob Barnett said an increase in demand for energy to support AI and data centers is expected to boost the company’s sales by 25% from 2025-27. FSLR is planning to increase its solar manufacturing capacity from 18.5 GW to 25 GW by 2026.
Although the company’s stock price incurred a downturn in the previous month, it has shown an upward trend over the last five trading days. This upward trend continues to draw investors’ attention at a time when Trump’s energy policy is in focus.
9. Netflix Inc. (NASDAQ:NFLX)
Netflix Inc. is a global entertainment services provider that offers a wide variety of documentaries, games, TV series, and movies. The company’s target price was downgraded from $1065 to $1040 by Oppenheimer based on valuation concerns. However, the analyst acknowledged that there were hardly any business headwinds and didn’t downgrade the rating. Seaport Global upgraded the stock to Buy from Neutral, showing they were more bullish on the stock than Oppenheimer.
At the end of 2024, the stock underperformed the S&P 500. Moreover, the company’s valuation is not attractive right now. At this point, investors are concerned about the continuous decline in share prices since last month. However, as the analyst ratings show, a lot of the current pessimism is priced in. The impact of the second season of Squid Game show will become apparent during this quarter and that could act as a catalyst for the stock’s next rally.
There has been a huge transition in the TV and movie industry in the past 10 years. Being a streaming giant NFLX remained on top among its closest competitors (Amazon Prime Video and Disney) in terms of subscriber count. Having a high CFC ratio (the ability to pay back debt) of 22% shows its sound finances, despite having to spend large amounts of money on creating fresh content. Given all this information, Netflix is still the top choice for customers looking for streaming options. Investors can consider this downturn in price as an opportunity to re-analyze their investment strategy.
8. Ingram Micro Holding Corporation (NYSE:INGM)
Ingram Micro Holding Corporation is a technology distributor and supply chain services provider worldwide. The company was upgraded from Equal-weight to Overweight by Morgan Stanley. Target price was upgraded from $25 to $27.
This upgrade was the result of improved market conditions for small and medium businesses and an attractive valuation of the company’s stock. 95% of customers of INGM are small to medium-sized businesses. Moreover, the company’s IT spending is expected to rise by 5% in 2025. This will boost growth in areas of PCs, servers, PC peripherals, and storage.
INGM exceeded estimates in its third-quarter earnings. Expected earnings for the fourth quarter are $0.90 per share and revenue of $13.21 billion. The company’s stock prices have recorded consistent gains in the past 5 trading days. The positivity is likely to continue in the future and suggests an encouraging outlook for investors.
7. DigitalOceans Holdings Inc. (NYSE:DOCN)
DigitalOceans Holdings Inc. is a global cloud computing platform provider that provides tools and infrastructure for start-ups and many other types of businesses. The company was in the spotlight because it was upgraded by Morgan Stanley from Equal-Weight to Overweight with a target price from $40 to $41.
DOCN received the upgrade because of its potential in AI and machine learning. It is expected to grow at 23% per CAGR (compound annual growth rate) reaching over $213 billion in the upcoming 3 years. According to the note released by analyst John Baer, “DigitalOcean’s larger customers are demanding more product capabilities and the company is delivering”. It shows the increasing demand for the company’s products which will drive more revenue.
Although there was a downturn in the company’s stock price in the past month, it has already gained 8.34% in the last 5 days. Investors have the potential to gain from this ongoing upward trend.
6. EQT Corporation (NYSE:EQT)
EQT Corporation is a natural gas producer in the U. S. and offers contractual pipeline capacity management and marketing services. Bernstein upgraded the company from Market Perform to Outperform with a target price of $73.
BTIG analyst Jonathan Krinsky believes the energy sector is becoming increasingly popular among investors. It is mainly due to the notable performance of the natural gas companies like EQT. Additionally, EQT was ranked the 12th best S&P 500 performer in the 1st half of Jan 2025.
The stock’s last 5 days of trading have returned 7.76%, showing the uptrend is continuing after the analyst upgrades. Donald Trump’s arrival into the White House next week should help the sector continue its gains in the next week too.
5. Devon Energy Corporation (NYSE:DVN)
Devon Energy Corporation is an independent energy company that operates in the U.S. It is involved in the development, exploration, and production of natural gas liquid, oil, and natural gas. DVN was upgraded by Bernstein from Market Perform to Outperform with a target price of $45.
The Bernstein team projected sustainable growth in liquefied natural gas exports from 2024 to 2030. Regardless of a 23% decrease in 3rd quarter earnings, the company is expected to gain 13% in the upcoming fourth-quarter earnings. The firm is highly profitable at current oil price levels which have shot up 8% in the last week alone. Also, the stock is offering an attractive valuation at these levels. It is an attractive option for investors who want to gain exposure to surging energy markets.
4. Mobileye Global Inc. (NASDAQ:MBLY)
Mobileye Global Inc. is a global provider of autonomous driving solutions and advanced driver assistance systems (ADAS). These are systems that utilize cameras or sensors to help drivers react to different types of hazards on the road. The stock was just initiated by Oppenheimer with an Outperform rating. The target price assigned to the stock is $28.
According to Oppenheimer analysts, the light-duty vehicle industry is migrating to vehicles with lower emissions, and as autonomous driving becomes the norm, this migration will accelerate. They believe once that shift happens, MBLY will be a key part of most of the legacy OEMs that will meet the demands of this market.
MBLY stock has been down 44% in a year and a positive outlook like the one Oppenheimer is suggesting could finally change the shareholders’ fortune. The stock is already up in the last 5 days of trading and looks to be picking up momentum.
3. Dana Incorporated (NYSE:DAN)
Dana Incorporated is an auto parts supplier that was up 14% this week. The reason for the surge: analyst optimism stemming from internal restructuring at the company. In November last year, Dana engaged financial advisors to help it sell the Off-Highway business. According to the company, the step was intended to help the company unlock shareholder value.
That sentiment now seems to be shared by UBS analysts, who believe the potential sale could help the business de-lever, allowing more value to be added to the company’s equity. Analysts see the company as having a cleaner capital structure as a result of the sale.
Despite spending most of the last year in a downtrend, DANA shares seem to have turned a corner since the announcement of the sale. The stock is up 45% since the sale announcement and with UBS changing the stock rating from neutral to buy, more upside can be expected.
2. Robinhood Markets Inc. (NASDAQ:HOOD)
Robinhood Markets Inc. is a financial services company that allows users to sell, buy, and trade cryptocurrency, stocks, exchange-traded funds, gold, and options. The company operates a mobile app platform called Robinhood. Morgan Stanley upgraded the company to Overweight and selected the trading app’s stock as its top pick.
President Donald Trump is planning to sign a special order to prioritize crypto regulation. Additionally, Bitcoin’s price is surging as the second presidential term of Donald Trump is about to start.
Regardless of past controversies, especially in the backdrop of the GME meme-trading saga a few years ago, HOOD’s stock prices showed a significant uptick in the last year. In the past 5 trading days, the company’s shares have gone up by 24%. That price movement is in sync with the strong balance sheet and profitability of the company, something investors are quite attracted to at the moment.
1. Cisco Systems Inc. (NASDAQ:CSCO)
Cisco Systems Inc. is a multinational company that sells, manufactures, and designs internet protocol-based networking and other telecommunication products. Citi’s analysts are optimistic about the company’s short-term prospects and have added it to their 30-day Catalyst Watch list.
The main reason for this short-term optimism is the return to growth of the campus switching market. The said networking and equipment market normalized and returned to growth in the fourth quarter of 2024, which should be reflected in the upcoming earnings report. The campus switching market is about 20% of the company’s total sales, so growth here will have a significant impact on the company’s topline.
The company’s share price performance was quite attractive in the past month. There was an upward trend with a 3.5% gain in the stock’s price in the last 5 trading days. The company’s profile and potential for growth make it a worthy consideration for investors.
Cisco Systems Inc. is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held CSCO at the end of the third quarter which was 61 in the previous quarter. While we acknowledge the potential of CSCO as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CSCO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
