Analysts say you buy stocks like Walmart & Nio

0


Shoppers walk outside a Walmart store in San Leandro, California, United States on Thursday, May 13, 2021.

David Paul Morris | Bloomberg | Getty Images

As the earnings season draws to a close, investors’ eyes are on what the second half of 2021 will look like.

Be it a contagious new variant of Covid-19 causing lockdowns, changing e-commerce trends that are changing consumer behavior, or the holiday seasonality that determines the fate of the travel industry, the factors influencing our financial future are unpredictable . To get an edge, many investors consider the ratings of the top performing financial analysts. TipRanks makes this possible for the everyday investor by organizing these updated reviews in an easy-to-read format.

Some of the companies featured in this article sometimes underperformed analysts’ estimates with poor earnings performance in the second quarter due to the difficult comparisons with their incredibly strong first quarter results. Others, however, prevailed and reported positive developments. These now remain as purchase ratings or have been reassigned. Wall Street’s top performing analysts have given these ratings based on the long-term upside potential of companies.

Let’s take a look at five stocks that top analysts see as long-term buys.

Walmart

Walmart is particularly well positioned to handle the slowdown in e-commerce trends and has recently released high quality earnings results. After Walmart beat Wall Street’s consensus estimates and raised its own forecast, Robert W. Baird & Co.’s Peter Benedict raised his price target from $ 160 to $ 170 while maintaining his buy rating on the stock.

The five-star analyst was delighted with Walmart’s diversifying revenue streams, particularly the acceleration of initiatives like Walmart Connect. He also noted that there was growth in the food and general merchandise sectors.

Walmart topped Wall Street’s estimates of $ 1.51 per share and reported $ 1.78. In addition, the retailer increased its international sales by 13% and reached an all-time high in Sam’s Club memberships.

The back-to-school shopping season encourages Benedict, who said Walmart is “well positioned regardless of the macro environment” for the second half of the year. Stimulus payments have certainly helped Walmart’s earlier profits, and now the analyst argues that the business is still moving forward.

TipRanks’ unique data placed Benedict 34th out of over 7,000 analysts. It has an 81% success rate and an average return of 24.3% per review.

Airbnb

With the increase in vaccination campaigns in the first half of the year, the travel industry also picked up speed. Despite the company’s particularly precarious position at the start of the pandemic, Airbnb has been able to navigate the rough seas and is now sailing smoothly. After another hit in the second quarter, Wells Fargo’s Brian Fitzgerald predicted a strong second half.

Fitzgerald listed the stock as a Buy and raised his price target from $ 200 per share to $ 210.

The five-star analyst based his hypothesis on the fact that long-term bookings outside of cities were the strongest niche for the company, but now shorter, more urban bookings are on the rise. This follows the economies opening up during the summer along with the start of the typical holiday season.

However, he believes the more flexible travel trends will continue as consumers maintain their increasingly hybrid work schedules. Airbnb has an extensive portfolio of domestic and international real estate options and therefore believes that Fitzgerald believes the company is in a particularly advantageous position to enter this trending market.

Despite Covid-19, things are going well for the company. The Nights and Experiences initiative expanded 197% year-over-year, and gross booking value increased 320% over the same period.

Airbnb helped its supply and demand curve by attracting more hosts after many opted to long-term rent their properties to locals. It has implemented better optimized onboarding strategies for new hosts and has cut onboarding time by more than 50%.

Fitzgerald remains optimistic about the third quarter, arguing that the forecast provided by ABNB is “conservative”. However, he warns that the “spread of Covid variants, local travel restrictions and slowed vaccinations have a detrimental effect on cancellations”.

On TipRanks, Fitzgerald ranks 36th out of a total of over 7,000 analysts. It has a 70% success rate, which translates into an average return of 32.9% per review.

modern micro devices

The shortage of semiconductors in the first half of 2021 created a spiral across several industries, particularly automakers and computer manufacturers. Now that the supply of silicon chips is slowly increasing again to meet the high demand, it is important to find the best company to invest in.

Bank of America’s Vivek Arya believes one of them is Advanced Micro Devices. He claims the stock is still trading about 25% below its value despite the recent surge.

Calling it a “top catch-up,” Arya rated the stock a buy and stated a price target of $ 135.

Not only did AMD recently beat expectations for earnings per share by more than 20%, but the company is currently trading at a discount compared to its industry competitors. Arya said the company is poised to grow its gross margins by more than almost any other semiconductor maker.

Unlike Intel, AMD has “limited exposure to more cyclical smartphones, memory, [and] autos / industrial demand. “Intel is still struggling with losses from Apple’s decision to manufacture its processors in-house, and its pipeline may be a generation behind AMD’s roadmap.

On TipRanks, Arya is rated 71st by more than 7,000 analysts. It has a 69% success rate with an average return of 27.4% per review.

Wix.com

Even less than outstanding earnings pressure in the second quarter can create a buying opportunity. For example, if a stock falls sharply but the investor sees it as an overreaction, there is an opportunity to buy. This is exactly the thought process of Brad Erickson of RBC Capital Markets, who wrote that the trends that negatively affected Wix.com seem “fleeting” and that the company itself is still a leader in web design.

Erickson reiterated his buy rating for the stock and set a revised price target of $ 270. While this target is lower than its previous one at $ 315, it could still represent a sizable uptrend for anyone willing to trade.

The five-star analyst suspects that Wix’s B2B partnerships offer more benefits than they don’t, as they have the potential to turn into recurring monetization opportunities. He interpreted management’s comments to mean that the businesses themselves “can develop organically up to four times the minimum obligations depending on the conversion”.

While Wix offers services for individual web developers, its larger, institutional e-commerce customers generate significantly more revenue for the company.

Eventually, Erickson wrote that he sees “increased pursuit of agency channels and e-commerce opportunities as additional potential given the attractive size and recurring nature of these revenue streams.” In other words, as long as the ecommerce trends keep dragging up, Wix will benefit.

On TipRanks, Erickson is rated 184th by over 7,000 analysts. It has a 58% success rate and an average return of 38.1% per review.

Nio

If a company is able to weather a storm, it will stand strong until the sky clears. Nio has mitigated the impact of global semiconductor shortages and is expected to perform even better once delivery restrictions are relaxed. Vijay Rakesh from Mizuho Securities predicts this development path for the Chinese manufacturer of electric vehicles (EV).

After rating the stock as a buy, Rakesh confirmed his optimism by raising his 12-month price target to $ 65-67.

The EV company had mixed earnings results, but Rakesh sees a more long-term approach. Nio raised its forecast for third-quarter shipments to potentially 97% year-over-year and could increase production by up to 100%.

The five-star analyst wrote that Nio “is well positioned for growth with a leadership position in premium electric vehicles, accelerated electric vehicle penetration in China, expansion in Europe in second half of 21 and potentially possible mass market offerings in 2022-23 is”.

The company expects its first Norwegian deliveries in September, which underscores its position as a global presence and increases its brand awareness. In addition, Nio has invested heavily in an effective infrastructure network, with a strong roadmap for the increasing number of charging stations.

Nio’s healthy balance sheet shows its potential for prosperity once the ongoing chip shortage subsides and the company can expand at its full strength.

On TipRanks, Rakesh is rated 97th by more than 7,000 analysts. Its success rate is 67% and an average return of 24.9% per review.


Share.

Leave A Reply