In this article, we take a look at five stocks that are being upgraded today. If you want to take a look at some more stocks that analysts are upgrading on Friday and the latest market situation, go to Analysts Are Upgrading These 10 Stocks on Friday.
5. Macy’s, Inc. (NYSE:M)
Number of Hedge Fund Holders: 42
Macy’s Inc. (NYSE:M) is 0.92% in the green as of 11:42 AM ET after the New York-based chain of high-end departmental stores received an upgrade in rating from Kimberly Greenberger at Morgan Stanley. The analyst upgraded Macy’s Inc. (NYSE:M) stock from an Underweight to an Equal-weight rating in the hope that the firm will be able to outperform its peers during a challenging macroeconomic outlook.
Greenberger further added that Macy’s Inc. (NYSE:M) has provided a conservative outlook that incorporates the impact of macroeconomic headwinds. The analyst anticipates a lower probability of a cut in earnings guidance due to this move, resulting in the company’s outperformance against competitors. Greenberger assigned the stock a target price of $22, which is 4% lower than the last closing price.
ClearBridge Investments shared its insights on Macy’s Inc. (NYSE:M) in its Q3 2021 investor letter. Here’s what the firm said:
“Meanwhile, Macy’s, an omnichannel retail organization that operates stores, websites, and mobile applications under the Macy’s, Bloomingdale’s, and Bluemercury brands, also had a strong quarter (+21.5%). Macy’s delivered strong second-quarter earnings, beating on earnings and revenue and raising guidance as the retailer continues to pay down debt and grow its digital business.”
4. iQIYI, Inc. (NASDAQ:IQ)
Number of Hedge Fund Holders: 14
iQIYI, Inc. (NASDAQ:IQ) was upgraded from a Neutral to a Buy rating by Alicia Yap at Citi earlier today. The analyst also increased the price target on iQIYI, Inc. (NASDAQ:IQ) from $4.50 to $5.60 following the Q1 2022 results. The revised target price represents a potential upside of 43.2% from the last closing price. Yap highlighted that iQIYI, Inc. (NASDAQ:IQ) is making efforts to optimize its cost, which helped the firm in reporting a profit that was higher than the analysts’ expectations for Q1 2022.
Hillhouse Capital Management was long over 38.6 million shares of iQIYI, Inc. (NASDAQ:IQ) during Q1 2022.
3. O-I Glass, Inc. (NYSE:OI)
Number of Hedge Fund Holders: 23
O-I Glass, Inc. (NYSE:OI) has risen 6.83% as of 11:45 AM ET after George Staphos at Bank of America upgraded the manufacturer of glass-packaged products from a Neutral to a Buy rating. The analyst also increased the price target on O-I Glass, Inc. (NYSE:OI) from $16 to $19. Staphos highlighted that O-I Glass, Inc. (NYSE:OI) has traded at a premium of 30% to 50% against the market during times of economic downturn. This is because the demand for its products is inelastic, and O-I Glass, Inc. (NYSE:OI) has a relatively stronger position in the European market as compared to the past.
As of Q1 2022, 23 hedge funds held a stake in O-I Glass, Inc. (NYSE:OI).
2. HCA Healthcare, Inc. (NYSE:HCA)
Number of Hedge Fund Holders: 62
HCA Healthcare, Inc. (NYSE:HCA) has gained 1.86% as of 11:45 AM ET after the Tennessee-based operator of healthcare facilities received an upgrade from a Market Perform to an Outperform rating by Lance Wilkes at Bernstein. The analyst revised the price target on HCA Healthcare, Inc. (NYSE:HCA) from $273 to $271, which still provides a potential upside of nearly 28% from the last closing price. Wilkes is confident that HCA Healthcare, Inc. (NYSE:HCA) can pass through higher labor costs, which will help earnings recover. This will be a positive catalyst for HCA Healthcare, Inc. (NYSE:HCA) stock as earnings estimates are already lowered, and the stock is trading at a depressed valuation.
HCA Healthcare, Inc. (NYSE:HCA) was mentioned in the Q3 2021 investor letter of First Eagle Investment Management. Here’s what the firm said:
“HCA Healthcare owns and operates 185 hospitals and approximately 2,000 sites of care in the US and UK. Admissions to its facilities, depressed during the worst of the Covid-19 outbreak in 2020, have begun to rebound. HCA reported a nearly 20% year-over-year increase in admissions during the second quarter and a 14% increase in revenue, and forecast that volume would continue to improve throughout the year. We maintain our positive opinion of the company’s management team, believing them to be effective stewards of both the balance sheet and HCA’s business operations.”
1. Denison Mines Corp. (NYSE:DNN)
Number of Hedge Fund Holders: 16
Denison Mines Corp. (NYSE:DNN) is up 4.20% as of 11:45 AM ET after the uranium development, exploration, and processing company was upgraded from a Hold to a Speculative Buy rating at TD Securities earlier today. Denison Mines Corp. (NYSE:DNN) can be considered a bet in case of a resurgence in demand for nuclear energy. European governments would now be forced to switch to nuclear energy to generate electricity as they would want to lower their reliance on Russian energy supplies following the Russia-Ukraine conflict.
Out of the 912 elite hedge funds in Insider Monkey’s database, 16 funds reported owning a stake in Denison Mines Corp. (NYSE:DNN) at the end of Q1 2022.
You can also take a peek at the 11 Best Video Game Stocks To Invest In and 12 Best American Stocks To Buy in 2022.
