The fourth quarter has barely begun, and Wall Street analysts identify firms that they feel have long-term promise.
Experts have weighed in on the stocks of firms ranging from video game developers to vacation ownership organizations, and they are positive.
TipRanks is a financial data aggregator that employs a dynamic mechanism similar to radar to pick up what Wall Street experts say about the current market environment. Even seasoned investors find the condition of capital markets to be a convoluted labyrinth of information. Still, by utilizing TipRanks’ unique capabilities, one may obtain a clearer view of what the pros are saying.
Let’s have a look at their hypotheses for these five stocks.
Short-term worries, when evaluated appropriately, can be converted into long-term advantages.
Nike (NKE) just announced earnings, and while the company claimed increased demand and good underlying business fundamentals. It did acknowledge suffering with ongoing supply chain difficulties. (See TipRanks’ Nike stock charts.) on the other hand, Williams Trading’s Sam Poser believes that now is the moment to enter a bullish position.
Poser assigned the company a Buy rating and set a price objective of $196.
Despite the supply chain issues, the five-star expert stated that “the worldwide health of the Nike brand has never been better.”. He believes the headwinds will be of short duration for investors and the firm, He expects Nike to better its peers in both the immediate and long term.
Nike cut its guiding estimates on its results call, but Poser calculates that the clothing retailer is on track to reach 2025 objectives.
The Covid-19 epidemic originally pulled down brick and mortar retail sales. But this statistic has largely recovered to its pre-government-mandated lockdown state. In North America, in-store sales grew by more than 50% year over year, suggesting “robust demand” for Nike products.
Poser is ranked 249th out of over 7,000 expert analysts by TipRanks. His stock ratings have resulted in a success record of 55% and an average return of 24.8 percent.
Big data is the lion of the game for SaaS firms.
Otonomo Technologies (OTMO) has developed a potential business model based on analyzing billions of data points from millions of automobiles on the road. Analysts expect much greater upside and possibilities for monetizing the data analytics firm’s product offerings now that it has gone public. (See TipRanks’ Otonomo stock analysis.)
Jack Andrews of Needham & Co. is one of those optimistic analysts, writing that Otonomo operates a “linchpin technology” that “unlocks income for original equipment manufacturer and connected car investments.” According to his estimates, the company offers a “favorable risk/reward arrangement with substantial upside” if it can realize its full potential.
Andrews established a Buy rating on the company and set a price objective of $10 per share for the next 12 months.
According to the top analyst, the business has built a bridge between two potential industries: automotive data and analytics. As the popularity of connected cars grows, so does the number of potential uses for the data they provide. He highlighted that, in addition to big automakers, additional income streams might develop from insurance firms and concierge platforms that use OTMO’s data.
In addition to enterprise players, Otonomo offers local governments with knowledge on how to create safer and more efficient urban planning.
One source of concern for the company is a potential governmental change toward customer privacy of the information supplied by the cars, which would jeopardize OTMO’s data standards.
Andrews ranked 158th out of over 7,000 experts on TipRanks. He was successful 63% of the time and received an average of 25.3 percent on each of his evaluations.
Marriott Vacations Around the World
For the tourism and leisure business, the Covid-19 epidemic has proven to be a powerful opponent. After a series of government-mandated shutdowns, the delta variant arrived late April and created much more havoc. Marriott Vacations Worldwide (VAC) weathered the crisis and is still relevant in today’s volatile environment.
According to David Katz of Jefferies, the firm is set for growth and is one of his top investment choices in the leisure market. (See TipRanks for Marriot Vacations insider trading activity.)
Katz gave the company a Buy rating and a 12-month price objective of $190.
This optimistic goal takes into account Covid-19 headwinds as well as current wildfires in the western United States. He anticipates the company’s pandemic-induced losses to offset by increased customer demand for holidays and timeshares.
While the whole sector is expected to see high demand, Katz believes that VAC’s ties to Marriott International (MAR) and brand recognition set it apart from the competition. Furthermore, this link provides VAC with “access to the largest loyalty program in hospitality,” giving the company a vast installed base.
Katz ranks 418th out of over 7,000 financial experts on TipRanks. He was successful 62 percent of the time based on his ratings, with an average return of 21 percent per rating.
Dell Technologies (DELL) recently conducted its crucial investor day, at which it set out a clear plan for expanding free cash flow, market share, and overall business direction in the long run. Share repurchase plans, a focus on premium consumer items, and possible upside in infrastructure projects all lead to a higher valuation for the global technology giant.
Evercore ISI’s Amit Daryanani commented on the conference, keeping a Buy rating and a 12-month price target of $114.
Dell announced a $5 billion share repurchase programme, as well as a quarterly dividend, according to Daryanani. The tech business will maintain its mergers and acquisitions investments at a lower level in order to improve free cash flow. The sentiment during the conference, according to the analyst, was on par with or even better than his expectations.
In the long run, Dell’s infrastructure and cloud-based storage facing businesses, such as remote access solutions and telecommunications software, may see “significant growth.” Trends toward PCs and gaming devices were boosted by the Covid-19 epidemic and the move to working from home. Dell recognises this and plans to concentrate on higher-end goods for everyday users.
Daryanani, who ranked 355 out of over 7,000 analysts on TipRanks, has a 63 percent rating success rate. His stock choices have a current average return of 16.6%.
Blizzard by Activision
Many people began playing video games as a means to pass the time while they were under pandemic-induced lockdowns. Activision Blizzard (ATVI) was not an exception among the businesses that generate video gaming brands, which benefited from the trend. Now, the company has a “wave of content” on its way to customers’ consoles, and analysts are optimistic about the pipeline.
Jefferies analyst Andrew Uerkwitz outlined his bullish thesis on the company, claiming that Activision has a “underappreciated portfolio of high-quality content in the fastest-growing category in entertainment.”
Uerkwitz rated the company as a Buy and set a price objective of $120 per share for the next 12 months.
Even in pessimistic situations, the five-star analyst finds it difficult to envision additional downside for its future titles after analyzing many conceivable scenarios involving release dates and customer reaction. Uerkwitz developed a scenario in which a certain title underperformed, but Activision Blizzard’s earnings per share for FY2021 exceeded expectations. (See TipRanks for Activision Blizzard’s earnings history.)
The firm has excellent gross margins, which allows it to operate with a lot of leverage. Activision has instruments for growth, including share repurchase programs and content investments, and may explore inorganic development through mergers and acquisitions, according to Uerkwitz.
Activision and the Equal Employment Opportunity Commission recently reached an agreement on a sexual harassment lawsuit. The $18 million settlement with the US government agency, in Uerkwitz’s perspective, is a speed bump in an otherwise smooth year. The settlement allays fears of further regulatory fines, while a less-than-ideal working atmosphere may a drawback if top personnel pushed away.
Uerkwitz ranked No. 122 out of over 7,000 expert analysts on TipRanks. His success percentage is 62 percent, and he averages a return of 27.7 percent each rating.