Nvidia CEO Jensen Huang introduces the NVIDIA Volta GPU computing platform during his keynote at CES in Las Vegas, January 7, 2018.
Rick Wilking | Reuters
Even though the holiday week ended on a positive note for equities, more volatility is likely in the cards.
All eyes are on the upcoming November payrolls report, due out on December 2. There is still plenty of time for stocks to turn around before the end of the year.
This means that investors should focus on longer-term prospects instead of focusing on short-term market fluctuations. See five stocks picked by top Wall Street pros below, according to TipRanks, a platform that ranks analysts based on their past performance.
Nvidia (NVDA) suffered from weaker demand for its chips in gaming and data center end markets due to macroeconomic headwinds and supply chain issues.
However, after the company released its quarterly results, Susquehanna analyst Christopher Rolland remarked that Nvidia was “getting back on track”. This prompted him to reiterate a buy rating on the stock and raise the price target from $180 to $185. (See Nvidia’s dividend date and history on TipRanks)
While high channel inventories are still an issue, Nvidia expects them to return to normal levels starting next quarter. Other than that, Rolland was pretty happy with quarterly performance and trends. Nvidia’s gross margin forecast amid declining revenue impressed the analyst, who said it “could point to significantly higher ASPs (average selling price) for new gaming and data center products. “.
The analyst said that of the four major end markets (automotive, data center, professional visualization and gaming), at least three are expected to grow at three times the rate of the overall semiconductor market.
Rolland is ranked 26e from more than 8,000 analysts tracked on TipRanks. Its track record over the past year shows a success rate of 69% and average returns of 21.8% per rating.
Another of Rolland’s stock picks is a semiconductor company Marvell Technology (MURLY), which is expected to report its results for the third quarter of fiscal 2023 on December 1. Ahead of print, the analyst identified several mitigating factors that should be a near-term sore point. With that in mind, Rolland reduced the price target from $90 to $75.
The company’s near-field HDD business is expected to remain weak in the quarter, due to heavy inventory build. Overall, the analyst expects Marvell to have had a slightly disappointing quarter, despite some tailwinds from the North American rollout of 5G infrastructure. (See the Marvell stock chart on TipRanks)
Beyond the quarter, Rolland sees several upsides for Marvell. “We believe the start of 5G rollouts in India could be positive for the narrative (with revenue coming later in 2023). Marvell’s 5G products continue to grow at Samsung and Nokia (two large customers), as the two companies’ networking activities exceeded expectations,” the analyst said.
Rolland reiterated his buy rating on the company.
Costco (COST) operates an international chain of warehouse clubs that offer branded and privately owned items from various product categories. Recently, in light of food inflation, the slowdown and other economic forces, Bank of America analyst Robert Ohmes analyzed the company’s outlook and came out optimistic.
“We expect high food inflation to drive continued market share gains for the warehouse club channel (including Costco) given the strong value proposition and price positioning on overlapping SKUs versus at the mass and traditional grocery store,” Ohmes said. (See Costco website traffic on TipRanks)
The analyst pointed out that Costco creates more than 20 new clubs per year. Additionally, he expects the strong trends in customer traffic and membership renewal rates to continue. Even in international markets, continued same-store sales growth is positive for the business
Ohmes is ranked #854 among more than 8,000 analysts on TipRanks. The analyst delivered profitable ratings 56% of the time, and each generated average returns of 8.3%.
Earlier this month, project management tools provider monday.com (MNDY) posted exceptional quarterly results, which boosted investor and analyst confidence. Among Monday.com’s bulls was Tigress Financial Partners analyst Ivan Feinseth, who reiterated a buy rating on the stock.
Feinseth noted that business performance should benefit from continued high customer adoption rates. Moreover, Monday.com’s competitive advantage lies in its low-code/no-code Work OS operating system. He also maintains that the easy integration and user-friendliness of the platform will continue to attract important customers and drive revenue growth. (See Monday.com’s financials on TipRanks)
“Continued innovation and growth will continue to drive MNDY’s already strong brand equity, along with its high-margin SaaS (Software as a Service) subscription-based revenue model, will drive continued acceleration in business performance, which will lead to increasing return on capital, incremental gains in economic profit and long-term shareholder value creation,” said Feinseth.
It is ranked 232n/a among more than 8,000 analysts on TipRanks. Feinseth issued profitable notes 60% of the time, and each generated returns of 11.3% on average.
entertainment company disney (SAY) is another stock on Feinseth’s buy list. The analyst recently reiterated a Buy rating and $177 price target on the stock, mostly buoyed by the return of former CEO Bob Iger, which should lead to “a return to creative dominance.” .
Moreover, the strong list of content is expected to boost the growth of the business. Feinseth is also optimistic about Disney’s continued investment in theme park upgrades, new technology and ongoing content development, which he says will continue to drive the company’s performance. (See Walt Disney hedge fund trading activity on TipRanks)
“DIS will continue to increase theme park attendance with continued park upgrades and the introduction of new attractions; the continued leverage of its advanced reservation system results in capacity optimization and better returns. revenue, and its Genie and Genie+ virtual fleet assistant dramatically increases the customer experience,” Feinseth said.
The analyst highlights Disney’s strong balance sheet, cash flow generation capabilities and practical capital allocation strategies. These help the company invest in content development, new theme park attractions, and other growth efforts.
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