Jensen Huang, CEO of Nvidia, demonstrates the NVIDIA Volta GPU computing platform during his keynote address at CES in Las Vegas, January 7, 2018.
Rick Wilking | Reuters
Although the holiday week ended on a positive note for stocks, more volatility is likely on the cards.
All eyes are on November̵[ads1]7;s upcoming wage report, due out on December 2. Furthermore, the Federal Reserve’s meeting awaits on 13-14. December, and investors await the central bank’s next step in its monetary policy campaign. There is still plenty of time for shares to fall before the end of the year.
This means that investors need to shift their focus towards long-term prospects instead of fixating on short-term fluctuations in the market. See below for five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Nvidia (NVDA) has been hurt by weakened demand for the chips from the 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 noted that Nvidia is “getting back on track.” This prompted him to reiterate a buy rating on the stock and raise his price target to $185 from $180. (See Nvidia Dividend Date & History on TipRanks)
While elevated channel inventories remain an issue, Nvidia sees them falling back to normal levels from next quarter onwards. Other than that, Rolland was quite happy with the quarterly results and trends. Nvidia’s gross margin guidance amid a lower revenue run rate impressed the analyst, who said this “may be indicative of significantly higher ASPs (average selling price) for both 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 26th among more than 8,000 analysts tracked on TipRanks. His track record over the past year shows a success rate of 69% and an average return of 21.8% per rating.
Another of Rolland’s stock choices is semiconductor companies Marvell technology (MURLY), which is scheduled to publish the results for the third quarter of 2023 on 1 December. Ahead of the push, the analyst identified several mitigating factors that are expected to be a sore point in the short term. With that in mind, Rolland cut his price target to $75 from $90.
The company’s nearby HDD business is expected to have remained weak in the quarter due to a large inventory build-up. Overall, the analyst expects Marvell to have had a somewhat disappointing quarter, despite some tailwinds from the North American rollout of 5G infrastructure. (See Marvell stock chart on TipRanks)
Looking beyond the quarter, Rolland sees several advantages with Marvell. “We think the start of India’s 5G deployments could be a positive to the narrative (with revenue coming later in 2023). Marvell’s 5G products continue to ramp up at both Samsung and Nokia (two major customers), as the network businesses of both companies beat expectations ,” the analyst said.
Rolland reiterated his buy rating on the company.
Costco (COST) runs an international chain of warehouse clubs offering branded and private goods from various product categories. Recently, in light of food inflation, recession and other economic forces, Bank of America analyst Robert Ohmes analyzed the company’s outlook and found it positive.
“We expect high food inflation to drive further stock gains for the warehouse club channel (including Costco) given the strong value proposition and price positioning on overlapping SKUs versus mass and traditional grocery,” Ohmes said. (See Costco website traffic on TipRanks)
The analyst pointed out that Costco churns out more than 20 new clubs a year. Furthermore, he expects solid trends in customer traffic and membership renewal rates to continue. Even in the international markets, continued growth in same-store sales is positive for the company
Ohmes is ranked #854 out of more than 8,000 analysts on TipRanks. The analyst has delivered profitable ratings 56% of the time, and each has generated an average return of 8.3%.
Earlier this month, project management tool provider Monday.com (MNDY) delivered banner quarterly results, which strengthened the confidence of both investors and analysts. Among the Monday.com bulls was Tigress Financial Partners analyst Ivan Feinseth, who reiterated a buy rating on the stock.
Feinseth noted that the company’s performance is winning on consistently strong customer adoption rates. Furthermore, Monday.com’s competitive advantage lies in its low-code/no-code Work OS. He also maintains that easy integration and ease of use of the platform will continue to attract significant customers and increase revenue growth. (See Monday.com Financial Statements on TipRanks)
“Ongoing innovation and growth will continue to drive MNDY’s already strong brand equity together with its high-margin SaaS (Software as a Service) subscription-based revenue model will drive an ongoing acceleration in business performance trends that will drive an increasing return on capital, further gains in financial surplus and long-term value creation for shareholders,” Feinseth said.
He is ranked 232n.d among more than 8,000 analysts on TipRanks. Feinseth has provided profitable ratings 60% of the time, and each has delivered an 11.3% return on average.
Entertainment company Disney (HAZE) is another stock on Feinseth’s buy list. The analyst recently reiterated a buy rating and $177 price target on the stock, largely buoyed by the return of former CEO Bob Iger, who is expected to drive “a return to creative dominance.”
Moreover, the solid content list is expected to drive the company’s growth. Feinseth is also optimistic about Disney’s ongoing investments in theme park upgrades, new technology and ongoing content development, which he believes will continue to drive the company’s performance. (See Walt Disney Hedge Fund Trading Activity on TipRanks)
“DIS will continue to drive increased visitation to theme parks with ongoing park upgrades and new attraction introductions; the ongoing utilization of its advanced reservation system drives capacity optimization and greater revenue yield, and its Genie and Genie+ virtual park assistants significantly enhance guest experiences,” said Feinseth.
The analyst highlights Disney’s strong balance sheet, cash flow generating capabilities and practical capital allocation strategies. These help the company invest in content development, new theme park attractions and other growth-driving efforts.