In this article, we will take a look at the 10 stocks recently upgraded by analysts. If you want to see some more stocks on the list, go directly to Analysts are Upgrading These 5 Stocks.
At the beginning of the week, European stocks experienced a decline, mirroring the fall in US equity futures. The focus for the week ahead will be on inflation and interest rates, particularly after China’s soft price data raised concerns about its economic recovery. According to Bloomberg, traders will pay close attention to US inflation numbers on July 12, as they may provide insights into the Federal Reserve’s future policy decisions and the increasing risk of a recession. Additionally, the UK jobs data scheduled for July 11 will play a crucial role in determining the Bank of England’s upcoming policy decision in August. Market participants will closely monitor these economic indicators. China’s stock market is under threat from a significant wave of selling pressure as cash trapped in mutual funds is set to be redeemed. This adds to the already mounting concerns that are negatively impacting market sentiment. Morningstar Inc.’s data reveals that more than 200 billion yuan ($28 billion) of cash, held in mutual funds for the past three years, is about to be released. This impending redemption offers frustrated investors an opportunity to explore alternative investment options outside of equities and potentially find a new place to allocate their funds.
According to Reuters, U.S. Treasury Secretary Janet Yellen’s visit to Beijing did not bring about any immediate resolution or easing of tensions between the U.S. and China. The meetings between Yellen and top Chinese economic officials covered a range of issues, but it remains uncertain if they will change the trajectory of the relationship. The primary accomplishment of the meetings was establishing communication and conveying U.S. intentions on various policies. While the visit was described as pragmatic and rational, expectations for a positive outcome are considered weak and uncertain. The discussions addressed significant disagreements, including U.S. concerns about China’s unfair economic practices and punitive actions against American companies. Predicting how the two sides will move toward compromise is still challenging, but maintaining dialogue is crucial.
According to Goldman Sachs, India is expected to surpass Japan, Germany, and, eventually, the United States to become the world’s second-largest economy by 2075. Currently ranked as the fifth-largest economy, India’s projected leap is attributed to factors such as a growing population, advancements in innovation and technology, increased capital investment, and rising worker productivity. Goldman Sachs Research’s India economist, Santanu Sengupta, highlights that India is anticipated to have one of the lowest dependency ratios among regional economies over the next two decades. A low dependency ratio suggests a higher proportion of working-age adults who can support both the younger and older generations.
Oil prices in Asian trade declined as investors approached the week with caution ahead of upcoming economic data from major consumers, the United States and China, reported Reuters. However, expected crude supply cuts by Saudi Arabia and Russia limited the losses. Brent crude futures dropped by 55 cents (0.7%) to $77.92 a barrel, while U.S. West Texas Intermediate crude fell by 55 cents (0.7%) to $73.31 a barrel. Analysts noted that oil traders were exercising caution in anticipation of the U.S. Consumer Price Index (CPI) data and China’s economic data later in the week. Despite the cautious sentiment, the announcement of further supply cuts by OPEC+ could potentially lead to a rebound in crude prices. The economic slowdown in China and the ongoing interplay between demand concerns and supply control strategies by OPEC contribute to market uncertainty. Saudi Arabia extended its output cut into August, while Russia reduced crude exports to meet domestic demand. Additionally, non-OPEC+ supply has been keeping up with global demand, prompting suggestions for OPEC+ to deepen cuts and extend them into 2024.
On the U.S. stock market front, Raymond James analyst Michael Rose upgraded First Horizon Corporation (NYSE:FHN) from Market Perform to Outperform. At the same time, according to Wolfe Research analyst Sam Margolin’s research note issued on July 7, ConocoPhillips (NYSE:COP) has been upgraded from Peerperform to Outperform. Meanwhile, notable stock, including JPMorgan Chase & Co. (NYSE:JPM) was spotted gaining value after receiving upgrades from analysts. Check out the complete article to see some other stocks recently upgraded by analysts.
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10. PLAYSTUDIOS, Inc. (NASDAQ:MYPS)
Number of Hedge Fund Holders: 11
Headquartered in Las Vegas, Nevada, PLAYSTUDIOS, Inc. (NASDAQ:MYPS) is a renowned developer and publisher of casual games for mobile and social platforms. Their focus is on creating free-to-play games that cater to a wide range of players in the United States, North America, and around the world. With their mobile and social gaming expertise, PLAYSTUDIOS, Inc. (NASDAQ:MYPS) aims to provide enjoyable gaming experiences to a diverse audience. Their presence extends beyond the borders of the United States, as they also have a global reach in the international market. BofA analyst Omar Dessouky, on July 7, upgraded PLAYSTUDIOS, Inc. (NASDAQ:MYPS) to a Neutral rating from Underperform. Dessouky has also raised the price target from $3.50 to $4.50. The upgrade is based on an improved outlook for mobile gaming in-app purchases in 2023. However, it’s worth noting that BofA has simultaneously terminated coverage of the stock due to a reallocation of resources.
09. Adtalem Global Education Inc. (NYSE:ATGE)
Number of Hedge Fund Holders: 15
Adtalem Global Education Inc. (NYSE:ATGE) is an American firm based in Chicago, Illinois. It provides certificates and degrees for different professions such as business, public administration, and social work. According to a research note issued on July 7, BMO Capital has upgraded Adtalem Global Education Inc. (NYSE:ATGE) to an Outperform rating from Market Perform while maintaining a price target of $44. The analyst states that nursing school enrollment has stabilized and is experiencing growth once again. Although Walden University has faced challenges since its acquisition in August 2021, the firm notes that new enrollments are increasing, which is likely to result in overall enrollment growth. BMO Capital believes that Adtalem Global Education Inc. (NYSE:ATGE) current situation is advantageous, particularly following the recent decline in the stock price. They see the current levels as a favorable entry point for investors.
08. Credicorp Ltd. (NYSE:BAP)
Number of Hedge Fund Holders: 18
On July 7, Scotiabank analyst Jason Mollin revised his rating for Credicorp Ltd. (NYSE:BAP), upgrading it from Sector Perform to Outperform. Along with the upgrade, Mollin set a price target of $207 for the stock. This implies that the analyst expects Credicorp Ltd. (NYSE:BAP) to outperform its sector peers and reach a target price of $207.
Ariel Investment made the following comment about Credicorp Ltd. (NYSE:BAP) in its Q3 2022 investor letter:
“Peruvian banking franchise Credicorp Ltd. (NYSE:BAP) was another contributor to relative returns in the quarter as improving financial results and successful execution across its digital initiatives drove shares higher. We remain focused on Credicorp’s attractive long-term earnings potential. The company continues to garner higher customer satisfaction and strengthen its competitive moat by educating the unbanked and prospecting through a centralized data analytics platform to expand its client base. The company also views venture capital and the underdeveloped fintech market in Peru as an opportunity to boost growth and enhance shareholder value. At current levels, we believe the valuation is attractive and think Credicorp’s risk/reward dynamics are skewed to the upside, particularly in a rising interest rate environment.”
07. Hudbay Minerals Inc. (NYSE:HBM)
Number of Hedge Fund Holders: 25
Hudbay Minerals Inc. (NYSE:HBM) is another Canadian mining company. Headquartered in Toronto, Canada, the firm produces a wide variety of materials such as copper, zinc, and silver. It has mines in the U.S., Canada, and Peru. In a recent research note on July 7, Barclays analyst Matthew Murphy upgraded Hudbay Minerals Inc. (NYSE:HBM) from Equal Weight to Overweight. The price target for the stock remains unchanged at C$9. Despite the recent decline in the stock’s value, Murphy highlights several positive factors. These include improving production in Peru, the integration of Copper Mountain, and Hudbay Minerals Inc. (NYSE:HBM) promising medium-term exploration prospects. Additionally, the analyst mentions the potential growth from Copper World.
06. Exelon Corporation (NASDAQ:EXC)
Number of Hedge Fund Holders: 32
Exelon Corporation (NASDAQ:EXC) is a company that manages utility services and operates in the energy distribution and transmission sectors across the United States and Canada. The company purchases electricity and natural gas for regulated retail sale, distributes electricity, and supplies natural gas to retail customers. Exelon Corporation (NASDAQ:EXC) operates 21 nuclear reactors generating 17,800 megawatts. The company provides electricity and natural gas to nearly 10 million customers.
Shahriar Pourreza, an analyst at Guggenheim, provided a notable upgrade to Exelon Corporation (NASDAQ:EXC) on July 7, as the stock’s rating was raised from Neutral to Buy. Exelon Corporation (NASDAQ:EXC) holds a prominent position as a company dedicated to the operation of nuclear power plants, not limited to Illinois but extending its presence across multiple states. Pourreza’s decision to upgrade the rating signifies a positive outlook for Exelon Corporation (NASDAQ:EXC) prospects, suggesting potential growth and favorable investment opportunities. Investors should take note of this significant rating change by the Guggenheim analyst, considering Exelon Corporation (NASDAQ:EXC) expertise in the field of nuclear power generation.
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Disclosure. None. Analysts Are Upgrading These 10 Stocks is originally published on Insider Monkey.
