Apple CEO Tim Cook unveils the new iPhone 14 at an Apple event at its headquarters in Cupertino, California, on September 7, 2022.
Carlos Barria | Reuters
Market prospects are becoming increasingly uncertain amid sluggish inflation and a slowing economy.
Stocks ended Friday down. They ultimately failed to recover from a sharp sell-off on Tuesday that saw the Dow Jones Industrial Average shed more than 1,200 points.
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Against this background, investors need to look beyond the current turbulence when choosing their investments. To that end, here are five stocks handpicked by top Wall Street pros, according to TipRanks, a platform that ranks analysts based on their performance history.
Apple (AAPL) needs no introduction. The iPhone maker has conquered all odds and pushed ahead with compelling product launches. On September 7th, the company held its big fall event, where it unveiled its long-awaited iPhone 14 series along with Apple Watches and AirPods.
Following the event, Monness Crespi Hardt analyst Brian White said the product launches enhanced “an unprecedented portfolio and a more ubiquitous platform.” (See Apple’s Hedge Fund Trading Activity on TipRanks)
White was wary that the treacherous macro environment could make consumers hesitant to indulge in a new smartphone purchase. However, he was encouraged by the fact that the company has not increased the prices of the iPhone 14 smartphones.
White notes that Apple’s current price-to-earnings ratio is above its average for the last few years. Looking ahead to the long-term business model, however, the analyst was optimistic that Apple’s strong services business has laid a solid foundation for consumer confidence.
The analyst who is at 470th Position among nearly 8,000 analysts tracked on TipRanks with a Buy rating on AAPL stock with a price target of $174.
White has a track record of 57% pass rate on his reviews, with each review generating an average return of 11%.
Growing demand for natural gas as an energy source drives growth of EQT Corporation (EQT). Needless to say, skyrocketing oil and gas prices this year have also taken EQT on a wild ride.
The Company recently entered into an agreement to acquire slate producer Tug Hill. Following the news, RBC Capital Markets analyst Scott Hanold reiterated a Buy rating on EQT shares, with a $2 increase in the target price to $57. “Management’s recent comments during its Q2 2022 conference call made it clear that acquisitions must be more compelling than own share repurchases and also contribute to asset quality, including lowering the company’s breakeven point, and we believe this transaction will achieve those.” Criteria met,” Hanold said, explaining his bullishness. (See EQT Blogger Opinions and Opinions on TipRanks)
According to the analyst’s calculations, the Tug Hill acquisition could boost EQT’s free cash flow to $6 billion in 2023 and also boost earnings per share by 10% to 15%. The additional FCF can be used for higher share buyback approval, but Hanold believes the company is more likely to use it to reduce its debt.
“We believe EQT shares should outperform the competition over the next 12 months. EQT is well positioned with a large asset base focused on the Appalachian Basin,” said Hanold, who is ranked 14th out of nearly 8,000 analysts followed by TipRanks.
Overall, 66% of Hanold’s ratings have successfully generated an average return of 30.9%.
Another player in oil and natural gas exploration and production, Devon Energy (dvn), is among the favorites of the top analysts in the market. The company’s favorable geographic location drives most of its business. The prolific Delaware, Eagle Ford, Anadarko, Powder River and Williston Basins are the core areas of Devon Energy’s operations.
Earlier this month, the company formed a liquefied natural gas (LNG) partnership with Delfin Midstream. The deal includes an agreement between both parties for long-term liquefaction capacity (1 million tons per year) in Delfin’s first floating LNG vessel, with the possibility of adding another 1 Mtpa in the first project or in future vessels.
Following the announcement, Mizuho Securities analyst Vincent Lovaglio expressed optimism about the prospects of the deal and reiterated a buy rating on the company with a price target of $91. The analyst believes that “downstream liquefaction investments can connect otherwise price-disadvantaged Permian natural gas to world-class global markets by using excess free cash flow today to turn a molecule that was once seen as a potential drag into an asset.” .” (See Devon Energy Dividend Date and History on TipRanks)
Additionally, the deal could boost Devon’s annual dividend by around 30%. Lovaglio is #1 among nearly 8,000 analysts on TipRanks. Notably, 91% of its reviews were successful, with each review yielding an average return of 46.2%.
Manufacturer of semiconductor components Broadcom (AVGO) has recently focused on adding high-margin software to its product portfolio through organic efforts as well as strategic acquisitions. As a result, Broadcom’s $61 billion purchase of virtualization software company VMware caught the attention of several analysts.
Mizuho analyst Vijay Rakesh expressed optimism about the acquisition. “With VMware, we believe AVGO could pursue a similar strategy to Symantec-CA, where it retained key core assets and divested some low-volume, high-touch markets,” he said, emphasizing the company’s focus on higher-margin growth. (See Broadcom Stock Investors on TipRanks)
The analyst believes the acquisition will significantly boost Broadcom’s earnings per share. The analyst believes the company’s shares can reach a price of $793 and reiterated a Buy rating on the stock.
Broadcom’s strong market positions in multiple areas, operational leverage, and focus on acquisitions that boost its margins make Rakesh believe in its potential to unlock value.
Ranked 128th among around 8,000 analysts on TipRanks, Rakesh was successful with 57% of its ratings. Additionally, each of his reviews has generated an average return of 20.2%.
Another of Vijay Rakesh’s top picks for this season is semiconductor giant Nvidia (NVDA). The company recently took the spotlight for expecting a $400 million drop in revenue in the third quarter due to U.S. restrictions on sales of high-performance AI chips in China.
After discussions with top Nvidia officials, Rakesh renewed his optimism on Nvidia, reiterating a Buy rating on the stock with a price target of $225. Rakesh expressed optimism about the company’s high-end hopper architecture, which is on track despite the ban. That’s because most of the development team is based in the US (see Nvidia Stock Chart, Price History & Graphs on TipRanks)
“We believe that the hopper ramp will not be affected by the export ban as the updated 8-K allows for supply chain freedom through Hong Kong and China,” said Rakesh, who believes the loophole is an important breather for the company .
In addition, more than 90% of all AI workloads in the data center world are powered by Nvidia. AI is likely to provide the company with a key macro risk-resistant long-term growth opportunity.