The Spotify logo hangs on the facade of the New York Stock Exchange with American and Swiss flags as the company goes live in New York, April 3, 2018.
Lucas Jackson | Reuters
At the end of a week filled with updates on corporate earnings and the economy, it remains difficult to determine whether a recession can be avoided this year.
Investing in such a stressful environment can be difficult. To aid this process, here are five stocks selected by top Wall Street analysts, according to TipRanks, a platform that ranks analysts based on their past performance.
Front Apple (AAPL) December quarter results, scheduled for release on February 2, investors are quite aware of the challenges the company faces during this period. The words Production interruption in iPhone manufacturing facility in Zhengzhou in China with higher costs, the first quarter of fiscal 2023 Apple has suffered all. Needless to say, the company is expected to slow its growth quarterly.
However, Monness analyst Crespi Hardt White Brian results are in line with or slightly above Street’s expectations. The analyst believes a return in Services, iPad and Wearables, Home & Accessories revenue could be a savings.
Looking ahead, White sees pent-up demand for the iPhone that will come into play in the coming quarters, once Apple overcomes production difficulties. (See Investor sentiment in Apple shares on TipRanks)
The analyst feels that a valuation of about 27 times his calendar earnings estimate for Apple in 2023 is reasonable.
“This P/E target is well above Apple’s historical average in recent years; however, we believe the successful establishment of a strong services business has given the market more confidence in the model.” the company’s long-term business model,” White said, reiterating the buy. review and $174 price target.
White holds 67order position among the nearly 8,300 analysts tracked on TipRanks. His ratings have been profitable 63% of the time, and each rating has generated an average return of 17.7%.
“Spotify is following a favorable long-term trend, strengthening its platform, entering the vast digital advertising market, and expanding its audio offerings,” White said.
The analyst acknowledges some challenges await Spotify this year but remains optimistic about plans to improve margins and some favorable industry developments. While it can be difficult to attract new premium subscribers and face constant pressure from a lower digital ad spend environment, Spotify will benefit from monthly active users. (MAU) is ad supported this year. (See Spotify stock chart on TipRanks)
White is particularly optimistic about the decline of mobile app store exclusivity, following the adoption of the European Union Digital Markets Act last year. The act will go into effect from May 2023. One of the benefits for Spotify is the ability to advertise cheaper subscription offers. It can now offer offers outside of Apple’s iPhone app. (This is a challenge, as Apple previously only allowed them to advertise their subscriptions through the iPhone app.)
Health CVS (CVS), which operates a large retail pharmacy chain, was once an analyst with Tigress Financial Partners Ivan Feinsethlist of in recent weeks. The analyst reiterated his buy rating and $130 price target on the stock.
According to Feinseth, the company’s “consumer-centric integration model” as well as an increasing focus on primary health care will make healthcare more affordable and accessible. for customers. OLDVS purchased primary care provider Caravan Health as part of this focus. Furthermore, the impending acquisition of Signify Health “adds home health services and provider support capabilities.”
The analyst also believes that the continued expansion of CVS’s new store format, MinuteClinics and HealthHUB, will increase customer engagement and thus continue to be a key growth catalyst. (See Opinions and sentiments of CVS Health Blogger on TipRanks)
Feinseth is also confident that CVS’s merger with managed healthcare company Aetna in 2018 has created a healthcare mammoth. It is now well-positioned to capitalize on the changing dynamics of the healthcare market, as consumers gain more control over their healthcare spending.
Feinseth’s beliefs can be trusted, based on 208order positions among nearly 8,300 analysts in the TipRanks database. Also, his 62% profitable ranking track record, with each rating giving an average return of 11.8%, is also worth considering.
“Shake Shack is the preeminent concept in the better burgers category and is the rare restaurant chain whose level of awareness and brand recognition exceeds its size and physical sales base,” said Saleh. it”. (See Shake Shack hedge fund trading activity on TipRanks)
On the other hand, the analyst points out that expanding the service outside of New York has weakened Shake Shack’s margin profile by generating low profits per unit and exposing the company to sales volatility. bigger. However, margins appear to have bottomed out and the analyst expects profitability to gain momentum in the next 12-18 months. The combination of higher menu prices and commodity cost deflation is expected to push restaurant profits up to mid-range levels.
In it Preliminary fourth quarter results, management at Shake Shack mentioned that they plan to tighten general and administrative costs this year, due to macroeconomic uncertainties. This “will prove reassuring to investors with high G&A growth (over 30%) over the past two years.”
Saleh has a 64% success rate, and each of his ranks earns an average of 11.7%. Analysts are also placed 431st among more than 8,000 analysts on TipRanks.
Despite last year’s challenges, business process service providers TD Synnex (SNX) has benefited from a stable IT spending environment amid continued high digital transformation across industries. The company recently released fourth-quarter financial results last week, in which earnings beat consensus estimates and dividends skyrocketed.
Track results, Barrington Research analyst Vincent Colicchio delve into the results and note that the rapid growth in innovative solutions and high-growth technologies are the main positives. While the analyst has reduced his FY23 earnings forecast due to expected interest expense increases, he remains optimistic about SNX’s efforts to achieve cost synergies by year-end. current finances. (See TD Synnex Dividend Date & History on TipRanks)
Looking ahead, the analyst sees a mostly bullish trend, albeit with a few hiccups. “The main growth drivers in the first half of fiscal 2023 should be advanced solutions and high-growth technologies, and in the second half will be PCs and peripherals as well as high-growth technology. We anticipate Hyve Solutions revenue growth will slow in FY 2023 and slightly rebound in FY2024 compared to FY 2022 growth,” Colicchio commented, reiterating its buy rating and raising its target. price to $130 from $98 over the next 12 months.
Importantly, Colicchio ranked 297order out of nearly 8,300 analysts on TipRanks, with a success rate of 61%. Each of his ratings has resulted in an average of 13% returns.