In this article, we will discuss the 10 stocks recently upgraded by analysts. If you want to see more such stocks on the list, you can directly visit Analysts Are Upgrading These 5 Stocks.
ON Semiconductor Corporation (NASDAQ:ON) and Pinterest, Inc. (NYSE:PINS) were among the notable stocks that posted their fourth-quarter results on Monday. While the two companies beat earnings estimates, they issued a soft outlook for the current quarter.
Nevertheless, ON Semiconductor Corporation (NASDAQ:ON) received an upgrade after its latest earnings. Summit Insights upgraded the semiconductor supplier from “Hold” to “Buy,” saying the company is less vulnerable to price pressure relative to other analog peers.
Meanwhile, music streaming service Spotify Technology S.A. (NYSE:SPOT) and package delivery firm FedEx Corporation (NYSE:FDX), also came into the spotlight after receiving upgrades from analysts.
Wells Fargo turned bullish on Spotify Technology S.A. (NYSE:SPOT), citing its commitment to margin expansion. On the other hand, Citi upgraded FedEx Corporation (NYSE:FDX) after its recently announced cost-cutting initiatives. Check out the complete article to see some other stocks recently upgraded by analysts.
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10. H.B. Fuller Company (NYSE:FUL)
Number of Hedge Fund Holders: 13
Citi recently turned bullish on H.B. Fuller Company (NYSE:FUL), citing its improving margins. Analyst Eric Petrie raised his ratings for the adhesives manufacturing company from “Neutral” to “Buy” on Friday, February 3.
The analyst thinks China’s reopening and the company’s improving growth prospects in the second half of the year would potentially lift its margins. Petrie believes the stock currently trades at a discount relative to peers. He lifted his price target for H.B. Fuller Company (NYSE:FUL) from $72 per share to $85 per share.
9. Stanley Black & Decker, Inc. (NYSE:SWK)
Number of Hedge Fund Holders: 26
Stanley Black & Decker, Inc. (NYSE:SWK) recently received an upgrade following its better-than-expected financial results for Q4. Citi analyst Eric Lau upgraded the industrial tools manufacturer from “Sell” to “Neutral” on Friday, February 3.
For the fourth quarter, Stanley Black & Decker, Inc. (NYSE:SWK) reported adjusted earnings of 10 cents per share, narrower than analysts’ average estimate for a loss of 34 cents. Revenue remained nearly unchanged at $3.99 billion, against the consensus of $3.88 billion.
However, the company issued a weak financial outlook for 2023. Stanley Black & Decker, Inc. (NYSE:SWK) expects adjusted earnings in the range of breakeven to $2 per share, well below the expectations of $4.07.
8. Nordstrom, Inc. (NYSE:JWN)
Number of Hedge Fund Holders: 31
Gordon Haskett lifted its ratings for Nordstrom, Inc. (NYSE:JWN) from “Reduce” to “Hold” on Friday, February 3. The upgrade came after multiple reports suggested that activist investor Ryan Cohen has acquired a major stake in the luxury department store chain.
Cohen reportedly plans to force Nordstrom, Inc. (NYSE:JWN) to make changes to its board, considering its weak performance compared to rivals. The activist investor is doing so to support cost saving initiatives.
Nordstrom, Inc. (NYSE:JWN) shares climbed nearly 25 percent on February 3 as investors praised Cohen’s reported plans to change things around at Nordstrom.
7. Boyd Gaming Corporation (NYSE:BYD)
Number of Hedge Fund Holders: 36
CBRE lifted its ratings for Boyd Gaming Corporation (NYSE:BYD) from “Hold” to “Buy” on Friday, February 3. The upgrade came a day after the gaming and hospitality company surpassed financial expectations for the fourth quarter.
Boyd Gaming Corporation (NYSE:BYD) earned $1.72 per share on an adjusted basis, significantly higher than $1.35 per share in the comparable period of 2021. In addition, revenue for the quarter increased to $922.9 million, from $879.8 million in the year-ago period. The results beat the consensus of $1.45 per share for earnings and $879 million for revenue.
Among other updates, Boyd Gaming Corporation (NYSE:BYD) said it repurchased about $1.07 million worth of its common stock during Q4. BYD stock jumped to a nearly 10-month high on February 3 following the latest earnings.
Like Boyd Gaming Corporation (NYSE:BYD), analysts also improved their ratings for ON Semiconductor Corporation (NASDAQ:ON), Pinterest, Inc. (NYSE:PINS) and Spotify Technology S.A. (NYSE:SPOT).
6. Align Technology, Inc. (NASDAQ:ALGN)
Number of Hedge Fund Holders: 38
Goldman Sachs raised its ratings for Align Technology, Inc. (NASDAQ:ALGN) from “Sell” to “Neutral” on Thursday, February 2. Analyst Nathan Rich was primarily moved by the company’s sequential growth in Q4 and stability in the Americas and EMEA regions.
Rich also raised his price target for Align Technology, Inc. (NASDAQ:ALGN) from $165 per share to $307 per share. The upgrade follows the better-than-expected quarterly performance of the medical device company.
Align Technology, Inc. (NASDAQ:ALGN) recently reported adjusted earnings of $1.73 per share for the fourth quarter, crushing estimates of $1.56 per share. The quarterly sales of $901.5 million also exceeded the consensus of $892.82 million.
Speaking on the results, CEO Joe Hogan said in a statement:
“Overall, I’m pleased to report fourth-quarter results that reflect a more stable environment for doctors and their patients than recent quarters, especially in the Americas and EMEA regions, as well as most APAC markets outside of China.”
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Disclosure: None. Analysts Are Upgrading These 10 Stocks is originally published on Insider Monkey.