Top Street analysts bullish on Apple and Amazon

0

Apple CEO Tim Cook speaks during Apple’s annual Worldwide Developers Conference in San Jose, California on June 6, 2022.

Pierre Dasilva | Reuters

Using a market down cycle to accumulate stocks of companies with strong fundamentals and prospects can lead to good returns when the market goes up. To that end, keeping an eye out for stocks recommended by analysts can be a good practice.

Here are five stocks picked by top analysts on Wall Street, according to TipRanks, a service that ranks analysts based on the performance of their ratings.

Micron

micron (MU) strives to be the most efficient and innovative global supplier of semiconductor memory solutions. Growing demand for memory chips from cloud computing vendors, along with the rapid proliferation of 5G cellular network and IoT (Internet of Things), are driving the company’s growth.

However, the short term for the business looks unstable, with weak demand from the PC and smartphone market. Additionally, supply constraints for certain components are also expected to hurt Bit shipments for some time. (See Micron Dividend Date & History on TipRanks)

Last week, the company’s fourth quarter of fiscal 2022 painted a lackluster picture of its developments. Nevertheless, the Goldman Sachs analyst Toshiya Hari has not moved from its bullish position. The analyst was “encouraged by Micron’s supply-side response,” which included the company’s cost-cutting strategy. In particular, Micron is working to reduce its FY23 capital expenditures (CapEx) by approximately 30% year-over-year (or approximately $4.1 billion).

That said, the company also said it would double its investment in construction and take other strategic actions that would slow the ramp-up of certain DRAM and NAND processes. But these steps will ensure a smoother long-term growth track. “From our perspective, we believe that these actions highlight Micronto make tough decisions to preserve profitability and shareholder returns and are likely to be well received by investors, based on our previous conversations,” Hari noted, reiterating a buy rating on MU stock. Given the short-term headwinds, however, the analyst cut the price target from $63 to $62.

Hari, who was ranked No. 318 out of nearly 8,000 analysts tracked on TipRanks, provided profitable ratings 57% of the time. Additionally, each of its ratings has averaged returns of 16.3% over the past year.

Amazon

Amazon (AMZN) is enjoying strong Prime momentum thanks to fast delivery and a strong content portfolio. Additionally, the company’s cloud dominance is constantly reinforced by the high adoption rate of AWS. More importantly, the company’s strong global presence and unwavering customer focus remain its key selling points. (See Amazon Stock Investors on TipRanks)

Amazon is holding a Prime Early Access sale next week, before which Monness analyst Crespi Hardt Brian White is optimistic. The analyst believes that a sale ahead of the holiday season will boost Prime’s value and also benefit customers struggling with high spending.

In a bid to improve its Prime platform, Amazon has also offered its US Prime members a free one-year subscription to Grubhub+. The company has also invested heavily in improving its content portfolio over the past few months. Additionally, White also believes that Amazon’s acquisition of MGM Holdings.

Additionally, looking at Amazon’s reinvestments in the business, White believes the company’s current profitability is well below its long-term potential. Needless to say, the analyst reiterated a buy rating on the stock, with a price target of $172.

“We believe the company’s long-term growth trajectory is attractive across e-commerce segment, AWS, digital media, advertising, Alexa, robotics, AI, etc.,” White said, justifying his optimism.

White comes 491st among nearly 8,000 analysts tracked on TipRanks. Notably, 56% of its ratings were successful, each generating 10.10% return on average.

Apple

Apple (AAPL) did its best to combat slowing demand and rising costs. Its consistent and compelling product launches drive the brand forward in an increasingly uncertain environment.

In this context, the Tigress Financial Partners analyst Ivan Feinseth doesn’t seem too concerned about the short-term threats facing the company. The analyst recently maintained his buy rating on AAPL stock, believing that “continued innovation, new product launches and increasing services revenue will continue to drive long-term value creation for shareholders”.

Feinseth also thinks the recent pullback in stocks due to weak demand for Apple devices is a major buying opportunity. (See Apple hedge fund trading activity on TipRanks)

The analyst points out that the CarPlay interface for vehicles demonstrates its expansion and integration into the automotive sector, which can be a major driver of growth. Additionally, Feinseth is also looking forward to the launch of a VR headset later this year or early 2023. The analyst believes the launch may “lead to a new paradigm shift for AAPL services and ecosystem “.

Additionally, the company’s balance sheet and cash flow are strong enough to allow Apple to continue its growth initiatives and improve shareholder returns.

Feinseth, who is a five-star analyst on TipRanks, holds 288e position among approximately 8,000 analysts followed. 57% of its ratings generated profits, and each rating earned 10.6% return on average.

DHI Group

DHI Group (DHX), which offers a subscription-based career marketplace for techs, rides on the competitive divide presented by the 6.4 million technologist candidates currently subscribed to its two brands – Dice and ClearanceJobs.

Barrington Research Analyst Gary Prestopino believes that DHI has the advantage of long-term secular demand for tech specialists. “DHI specializes in job categories where there is long-term excess demand for highly skilled technologists who work in a variety of industries or who have active government security clearances,” the analyst said. (See DHI Group Stock Chart on TipRanks)

Prestopino also found that global digital technology job capacity is expected to grow from 41 million in 2020 to 190 million in 2025, highlighting the immense opportunity in the market that DHI serves.

Additionally, the analyst was encouraged by the relatively cheap valuation of a company with such potential for growth and profitability. “DHI is selling at a discount of over 60% to its peer group on both 2022 and 2023 TEV/EBITDA multiples,” said Prestopino, who initiated stock coverage with a price target of 12. dollars.

Prestopino, who is also a five-star analyst on TipRanks, is 61st among nearly 8,000 analysts tracked on the platform. Interestingly, 55% of its ratings managed to average returns of 31.5% each.

McDonald’s

Last on this week’s analysts’ best stocks list is McDonald’s (MCD), which gracefully navigates yet another downturn in its life. BTIG Analyst Pierre Salehwhich ranks 600th out of roughly 8,000 analysts on TipRanks, last week gave us valuable insight into the company, which he has long been bullish on.

To dig deeper into the company’s developments, the analyst interviewed several franchisees and took notes on their sales, demand and supply of vegetable meat, labor, commodities and automation. After the survey, Saleh was encouraged by good sales trends at McDonald’s that appeared to defy inflated food and gas prices.

Additionally, the analyst concluded that labor and overtime contractions can lead to significant margin expansion for franchises as labor availability improves. (See Opinions and sentiments of McDonald’s bloggers on TipRanks)

“We see McDonald’s as one of the strongest restaurant concepts in the world that is halfway through a multi-year sales recovery. After several years of lackluster results, management has restored sales and profit growth through a combination of relevant menu offerings, restaurant upgrades, digital engagement and stronger leadership,” said said Saleh, who also noted that these measures have improved sales trends.

The analyst reiterated a buy rating on MCD stock, with a price target of $280.

Saleh has 55% success with his ratings. Additionally, each rating has accumulated returns of 9.8% on average.

Share.

About Author

Comments are closed.