In this article, we discuss the 5 stocks recently upgraded by analysts. If you want to see some more stocks on the list, go directly to Analysts are Upgrading These 10 Stocks.
5. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 46
Shares of Ford Motor Company (NYSE:F) inched higher in pre-market trading Wednesday, October 5, after Morgan Stanley analyst Adam Jonas raised his ratings for the Michigan-based automaker from “Equal Weight” to “Overweight.”
Jonas sees a buying opportunity after the recent drop in Ford shares. He believes the company’s revised guidance for Q3 has already been mirrored in its stock price. Jonas also thinks that Ford Motor Company (NYSE:F) is doing better than General Motors (GM) in terms of business portfolios and strategy.
The upgrade came a day after Ford Motor Company (NYSE:F) posted its vehicle sales for the third quarter. The company sold 464,674 units in the quarter, up from 400,843 units in the corresponding period of 2021.
4. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 52
Shares of CF Industries Holdings, Inc. (NYSE:CF) rallied for two consecutive trading sessions after receiving an upgrade from RBC Capital on Monday, October 3, 2022. The research firm improved its ratings for the fertilizer manufacturer from “Sector Perform” to “Outperform.”
Analyst Andrew Wong thinks CF Industries Holdings, Inc. (NYSE:CF) should capitalize on the favorable nitrogen market forecast. Wong also expects potential upward revisions in the consensus expectations due to strong demand and higher prices. He raised his price target for CF stock from $110 per share to $135 per share.
Separately, asset management firm Chartwell Investment Partners mentioned CF Industries Holdings, Inc. (NYSE:CF) in its second-quarter 2022 investor letter, stating:
“We sold the full position in fertilizer company CF Industries, which also had a 20%+ YTD return (through 6/30), as we had concerns that the company would announce capacity additions, which would negatively impact nitrogen pricing.”
3. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 67
Erste Group turned bullish on Walmart Inc. (NYSE:WMT) on Wednesday, October 5. The research firm raised its ratings for the retail giant from “Hold” to “Buy,” citing its stable sales growth.
Analyst Hans Engel thinks the company’s moderate growth rate will continue in the coming years. Moreover, Engel predicted a marginal increase in Walmart’s operating margin next year. He also believes Walmart Inc. (NYSE:WMT) shares would continue to outperform the broad sector.
Walmart Inc. (NYSE:WMT) has been facing low sales lately, especially in its e-commerce segment. The company recently launched Walmart Land and Walmart’s Universe of Play to revive its slowing online sales.
The company partnered with metaverse platform Roblox to roll out these two immersive virtual experiences. Walmart Inc. (NYSE:WMT) intends to entice young customers with the latest launch.
2. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 68
Erste Group raised its ratings for The Charles Schwab Corporation (NYSE:SCHW) from “Hold” to “Buy” on Wednesday, October 5, 2022. Analyst Hans Engel expects the financial services company to achieve positive profit and revenue growth this year.
While Engel expects the growth rates to be down on a year-over-year basis, he expects them to be above the sector average. The Charles Schwab Corporation (NYSE:SCHW) shares marginally moved down on Wednesday morning despite the upgrade.
Meanwhile, The Charles Schwab Corporation (NYSE:SCHW) also appeared in the second-quarter 2022 investor letter of asset management firm Baron Funds. Here’s what the firm said:
“Shares of online brokerage firm The Charles Schwab Corporation (NYSE:SCHW) detracted in the quarter over concerns that clients will shift assets to less profitable money market funds and declining equity markets will pressure the asset management business. We retain conviction. Despite turbulent markets, Schwab attracted over $120 billion of net new client assets in the recent quarter. Rising interest rates should lead to increased profits on the company’s nearly $600 billion of interest earning assets as well.”
1. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 71
Shares of ConocoPhillips (NYSE:COP) rose in pre-market trading Wednesday, October 5, after Erste Group improved its ratings for the crude oil producer from “Hold” to “Buy,” citing elevated energy prices.
The research firm believes ConocoPhillips (NYSE:COP) is taking advantage of increasing global energy prices. Erste Group added that the company would continue to enjoy a high operating margin next year.
Earlier this year, investment management firm Diamond Hill Capital discussed ConocoPhillips (NYSE:COP) in its first-quarter 2022 investor letter. Here’s what the firm said:
“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”
You can also take a peek at 10 Best Consumer Discretionary Stocks To Buy and 10 Best Cyclical Stocks for Inflation.
