In this article, we will take a look at the 10 stocks that recently received upgrades from analysts. You can skip our detailed analysis of these companies and go directly to Analysts Just Turned Bullish on These 5 Stocks.
Analysts recently improved their ratings for notable consumer cyclical stocks, including AutoZone, Inc. (NYSE:AZO), Chewy, Inc. (NYSE:CHWY) and Chipotle Mexican Grill, Inc. (NYSE:CMG).
In addition, North Carolina-based less-than-truckload carrier Old Dominion Freight Line, Inc. (NASDAQ:ODFL) and Australian software firm Atlassian Corporation Plc (NASDAQ:TEAM) also received upgrades from research firms.
Photo by Chris Liverani on Unsplash
We will review the details of these upgrades in the remaining article.
10. National Vision Holdings, Inc. (NASDAQ:EYE)
Number of Hedge Fund Holders: 15
Shares of National Vision Holdings, Inc. (NASDAQ:EYE) rose over two percent on Monday, June 27, 2022, after Goldman Sachs upgraded the optical retailer from “Neutral” to “Buy,” citing improving demand trends for the second half of the year. The research firm also increased its price target for National Vision Holdings, Inc. (NASDAQ:EYE) from $31 per share to $32 per share.
Goldman Sachs analyst Kate McShane called the near-term demand challenges temporary. She thinks the approaching back-to-school period will likely act as a growth catalyst for National Vision Holdings, Inc. (NASDAQ:EYE).
9. The Simply Good Foods Company (NASDAQ:SMPL)
Number of Hedge Fund Holders: 17
Shares of The Simply Good Foods Company (NASDAQ:SMPL) jumped to a nearly two-month high on Monday, June 27, 2022, after receiving an upgrade from Stephens & Co. The research firm upgraded the consumer-packaged food company from “Equal Weight” to “Overweight,” stating that The Simply Good Foods Company (NASDAQ:SMPL) is capitalizing on increased snacking occasions.
Stephens analyst Ben Bienvenu believes that Simply Good Foods shares provide a lucrative investment opportunity for investors seeking stable growth in uncertain market conditions. Bienvenu also raised his price target for The Simply Good Foods Company (NASDAQ:SMPL) from $44 per share to $45 per share.
Earlier this year, investment management firm Carillon Tower Advisers also mentioned The Simply Good Foods Company (NASDAQ:SMPL) in its fourth-quarter 2021 investors letter. The firm said:
“Simply Good Foods develops and sells nutritional food and snacks, positioning it to take advantage of the secular trend towards healthy snacking. The stock outperformed when the company reported quarterly results in excess of expectations and also provided strong forward fiscal year guidance. The firm is seeing an improvement in sales as consumer mobility gradually returns to more normalized levels, and it benefits from going up against easy comparisons from last year when mobility was hampered by the pandemic.”
8. Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI)
Number of Hedge Fund Holders: 18
Goldman Sachs improved its ratings for Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) from “Sell” to “Neutral” on Monday, June 27, 2022, and lifted its price target for the discount closeout retailer from $37 per share to $57 per share.
Goldman Sachs analyst Kate McShane expects Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) to take advantage of increased closeout opportunities, particularly during the second half of the year.
Like Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI), analysts also recently turned bullish on AutoZone, Inc. (NYSE:AZO), Chewy, Inc. (NYSE:CHWY) and Atlassian Corporation Plc (NASDAQ:TEAM).
7. Vermilion Energy Inc. (NYSE:VET)
Number of Hedge Fund Holders: 18
Shares of Vermilion Energy Inc. (NYSE:VET) jumped nearly 12 percent on Monday, June 27, 2022, after Scotiabank upgraded the Canadian oil and gas producer from “Sector Perform” to “Outperform.”
Scotiabank analyst Jason Bouvier referred to the company’s exposure to European gas prices, which have increased sharply following the conflict between Russia and Ukraine. Bouvier said that Vermilion Energy Inc. (NYSE:VET) generates more than 40 percent of its cash flow from European gas operations.
Since the European gas prices have surged by nearly 50 percent following the Russia-Ukraine conflict, the relative valuation of Vermilion Energy Inc. (NYSE:VET) has also increased accordingly, Bouvier added.
6. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 19
Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) climbed 14 percent on Monday, June 27, 2022, after Goldman Sachs raised its ratings for the financial services company from “Sell” to “Neutral.”
Goldman Sachs analyst Will Nance thinks that higher interest rates would likely boost the net interest income of Robinhood Markets, Inc. (NASDAQ:HOOD) in the coming quarters. While Nance predicted a 19 percent rise in Robinhood shares over 12 months, he expects the stock to stay range-bound for now.
Separately, investment management firm Claret Asset Management talked about Robinhood Markets, Inc. (NASDAQ:HOOD) in its fourth-quarter 2021 investor letter published in January. Here’s what the firm said:
“Robinhood went public at $38 a share at the end of July of this year. After a oneday decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”
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Disclosure: None. Analysts Just Turned Bullish on These 10 Stocks is originally published on Insider Monkey.
