Business
Top analysts say buy stocks like Nike & Nividia
Published
10 months agoon
A silhouette of a woman wearing a protective face shield and a protective face mask is seen near to a Nike logo at a shopping mall.
Ajeng Dinar Ulfiana | Reuters
Investors made it through another volatile week, as the three major indexes notched gains for the period.
For now, markets seem to be shaking off the fears that have brought shares down in the first place, but the actual concerns haven’t dissipated. The war in Ukraine continues to roil Eastern Europe. Inflation is still hot, and rising fuel prices are denting consumers’ finances.
Tumultuous times require investors to look past headlines and focus on companies with sound fundamentals. Wall Street’s pros are highlighting the companies they believe have long-term potential, according to Tipranks, which tracks the best-performing analysts.
Here are five names to follow this week.
Riot Blockchain
Bitcoin values have largely held on over the last month, as have its heavily-associated publicly traded mining companies, like Riot Blockchain (RIOT).
Although the miner has been affected by bitcoin’s stagnating price over the last quarter, the company has continued to build out its infrastructure and is enhancing its vertically integrated capacities.
Recently, Darren Aftahi of Roth Capital Partners noted RIOT’s accelerating machine-deployment rate, as well as its latest land purchases as reasons to expect future growth.
Aftahi rated the stock a buy, and he assigned a price target of $46.
The analyst acknowledged Riot Blockchain’s underperformance over its last quarter’s earnings. However, he sees its lower revenues as a direct result of the lack of deployment in December. Regardless, he writes that this was but a “speed bump” and that the company should be ramping deployment and its mining operations as RIOT’s infrastructure projects come online.
Moreover, Aftahi expects the recently acquired infrastructure hardware provider ESS Metron to boost RIOT’s vertical integration. He added that it could “add materially to total revenue given its trialing nine-month revenue.” It will provide “priority access to infrastructure components at cheaper prices” to Riot Blockchain, the anlayst said.
On TipRanks, Aftahi is ranked as No. 378 out of almost 8,000 expert analysts. He has been successful when rating stocks 38% of the time, and he has returned an average of 32.1% on each one.
Cloudflare
Russia’s war on Ukraine has spurred Western entities to begin shoring up their cybersecurity in anticipation of a pick-up in hacking activity.
The highly competitive space of cybersecurity has several high-growth names ready for liftoff, including web infrastructure company Cloudflare (NET). The firm has been accumulating new customers.
Shaul Eyal of Cowen wrote that “through its end-to-end scalable cloud native platform, NET stands ready to disrupt the networking, security, and telco markets.” These industries represent a calculated total addressable market of about $100 billion, and NET appears poised for taking considerable market share. (See Cloudflare Estimated Monthly Visits on TipRanks)
Eyal rated the stock a buy and declared a price target of $250. He stated that this was the highest valuation in regard to a company’s expected FY23 revenues in all his cybersecurity coverage.
Investors increasingly view the DDoS mitigation software firm has a major player in its field. Cloudflare has been producing about half of its revenues from large enterprise customers, and is “ready to take on names such as AWS,” according to Eyal.
In regard to sanctions levied on Russian markets, the analyst wrote that NET has a marginal exposure to losses there. Moreover, he commended the company for providing pro bono services to critical infrastructure like hospitals, energy, and water utilities in need.
Out of nearly 8,000 professionals in TipRanks database, Eyal ranks as No. 14. He has been correct 76% of the time when picking stocks, and maintains an average return of 56.3% across his ratings.
Nike
Over the last two years, the retail industry has been plagued by lockdowns, supply-side and logistical constraints, and now runaway inflationary pressures weighing on consumer behavior. However, Nike (NKE) recently beat Wall Street consensus estimates on revenue and earnings per share. The company is also shifting its wholesale business to better adapt to new consumer trends.
This year, the shoe and athletic equipment manufacturer is experiencing demand that outstrips its supply and inventory. Nike also has been expanding its partnerships in Chinese markets, as noted by Robert Drbul of Guggenheim in his recent report. (See Nike Stock Charts on TipRanks)
Drbul rated the stock a buy, and he declared a price target of $195.
The analyst elaborated that the progress in China “will lead it into a new era of marketplace transformation.” Additionally, despite the declining year-over-year revenues in that market, Drbul said that “Nike has the most innovative brand, platforms, and product line” to succeed there.
In general, retail has been looking encouragingly strong at the current juncture in time. Drbul said that Nike’s industry-leading position should provide it with enough leverage to out-invest and out-innovate its peers.
While short-term operational challenges remain, Drbul expects them to subside in the long term and for Nike to emerge from them stronger, and more valuable, than before.
Drbul ranks as No. 111 out of almost 8,000 analysts on TipRanks. He has been correct when picking stocks 68% of the time, and he has achieved an average return per rating of 27.9%.
Adobe
Adobe (ADBE) recently reported its quarterly earnings results to a mixed reception. However, despite its soft guidance and slowing business trends, the company remains an industry behemoth.
Reporting on the stock’s standing is Brian Schwartz of Oppenheimer, who noted that the company’s decent performance could pick up as the year progresses, due in part to digital media price increases. Moreover, the software firm is experiencing healthy demand and promising annual recurring revenue metrics.
Schwartz rated the stock a buy, and he provided a price target of $560.
The analyst wrote that Adobe “stands out from almost any group as the pioneering trailblazer of digital creative and marketing tools and services.” Additionally, he noted that the firm has adapted itself into a “verifiable cloud platform success story as it rides atop multiple product pillars of substantial scale, profits, and growth trajectory.”
Out of almost 8,000 analysts on TipRanks, Schwartz is ranked No. 20. His success rate stands at 71%, and he has returned an average of 50.8% on each rating.
Nvidia
Nvidia (NVDA) has been projected to be one of the major benefactors of both the metaverse and the overall transformation to the cloud, and its valuation has reflected that.
Now that the stock has come down from its lofty prices of last November, the company appears far more attractive. This is the case even though its shares recently rebounded.
Nvidia recently hosted its investor day conference, at which its management highlighted the massive $1 trillion total addressable market from which the company intends to capture. NVDA has been announcing and releasing innovative products from its pipeline.
Vijay Rakesh of Mizuho Securities noted this in his recent report, adding that “NVDA’s new networking portfolio supports its focus towards providing a full end-to-end Data Center stack.” This stack includes “software, GPU, Grace GPU, Bluefield DPU (via Mellanox), and Switch,” Rakesh added.
The analyst rated the stock a buy, and he calculated a price target of $345.
Furthermore, the company has also been making considerable gains in the advanced driver-assistance systems market, wherein its penetration is expected to increase from about 10% to 50% in the next eight years. Rakesh argues that this total addressable market could be worth up to $300 billion, and represents a considerable growth driver looking forward. (See Nvidia Hedge Fund Activity on TipRanks)
Out of almost 8,000 expert analysts, Rakesh ranks as No. 33. He has been accurate when picking stocks 71% of the time, and he has returned an average of 47.9% when doing so.
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Business
IMF hikes global growth forecast as inflation cools
Published
6 hours agoon
January 31, 2023
The IMF has revised its global economic outlook upwards.
Norberto Duarte | Afp | Getty Images
The International Monetary Fund on Monday revised upward its global growth projections for the year, but warned that higher interest rates and Russia’s invasion of Ukraine would likely still weigh on activity.
In its latest economic update, the institution said the global economy will grow 2.9% this year — which represents a 0.2 percentage point improvement from its previous forecast in October. However, it said that number would still mean a fall from an expansion of 3.4% in 2022.
It also revised its projection for 2024 down to 3.1%.
“Growth will remain weak by historical standards, as the fight against inflation and Russia’s war in Ukraine weigh on activity,” Pierre-Olivier Gourinchas, director of the research department at the IMF, said in a blog post.
The Fund turned more positive on the global economy due to better-than-expected domestic factors in several countries, such as the United States.
“Economic growth proved surprisingly resilient in the third quarter of last year, with strong labor markets, robust household consumption and business investment, and better-than-expected adaptation to the energy crisis in Europe,” Gourinchas said, also noting that inflationary pressures have come down.

In addition, China announced the reopening of its economy after strict Covid-19 lockdowns, which is expected to contribute to higher global growth. A weaker U.S. dollar has also brightened the prospects for emerging countries that hold debt in foreign currency.
However, the picture isn’t totally positive. IMF Managing Director Kristalina Georgieva warned earlier this month that the economy was not as bad as some feared, “but less bad doesn’t quite yet mean good.”
“We have to be cautious,” she said during a CNBC-moderated panel at the World Economic Forum in Davos, Switzerland.
The IMF on Monday warned of several factors that could deteriorate the outlook in the coming months. These included the fact that China’s Covid reopening could stall; inflation could remain high; Russia’s invasion of Ukraine could shake energy and food costs even further; and markets could turn sour on worse-than-expected inflation prints.
IMF calculations say that about 84% of nations will face lower headline inflation this year compared to 2022, but they still forecast an annual average rate of 6.6% in 2023 and of 4.3% in 2024.
As such, the Washington, D.C.-based institution said one of the main policy priorities is that central banks keep addressing the surge in consumer prices.
“Clear central bank communication and appropriate reactions to shifts in the data will help keep inflation expectations anchored and lessen wage and price pressures,” the IMF said in its latest report.
“Central banks’ balance sheets will need to be unwound carefully, amid market liquidity risks,” it added.
Business
Credit Suisse see Apple beating the Street this week for a few reasons
Published
14 hours agoon
January 30, 2023
Credit Suisse is bullish on Apple shares as the tech company prepares to announce its earnings report this week. The bank reiterated Apple’s stock as outperform and maintained its price target of $184, which implies upside of 26% from where shares closed on Friday. Credit Suisse also held steady on its revenue estimate of $121.6 billion for Apple’s fiscal first quarter and per-share earnings of $1.92. “We see potential upside to our estimates which are below the Street,” analyst Shannon Cross said in a note to clients on Monday. Cross highlighted two key factors that could drive upside to the firm’s estimates. First, she pointed out the weakening of the U.S. dollar through the course of the quarter, which “benefits revenue from a translation perspective.” She also noted that margins could benefit because Apple raised prices in many countries to offset the strong dollar. Second, Cross pointed out that the fiscal first quarter of 2022 makes for “relatively easy” comparisons to the latest quarter because results in that period last year were constrained by more than $6 billion of backlog, including in iPhone and iPad. There could be possible hurdles for the company in this latest quarter. For instance, Cross cited potential challenges to the iPhone’s revenue in this past quarter due to production difficulties at a manufacturing site in China . However, she noted the increased availability of iPhone 14 models in recent weeks, thanks to improved production output. Meanwhile, Cross estimates Mac revenue having declined $3.1 billion, or 27% on a quarterly basis due to backlog fulfilled during the fiscal fourth quarter. Year-over-year revenue for Macs are similarly predicted to have declined 23%, in-line with Apple’s prior remarks anticipating a “very challenging compare” against the first fiscal quarter of 2022. Currency headwinds and the timing of inventory wind down prior to the M2 MacBook Pro’s January launch are believed to have contributed to the drop in revenue. Other potential stumbling blocks include weakened consumer demand and the impact of Apple’s decision to halt product sales in Russia last spring, which will likely continue for the foreseeable future, and are also predicted to slow revenue growth. Cross anticipates this headwind will first affect the company’s Wearables, Home & Accessories category products. While shares have rallied more than 10% since the beginning of 2023, the stock is down 15% in the past 12 months. —CNBC’s Michael Bloom contributed to this report.
Business
Most Adani shares continue losses; founder loses $28 billion in month
Published
22 hours agoon
January 30, 2023
Gautam Adani, chairperson of Indian conglomerate Adani Group, at the World Congress of Accountants in Mumbai on Nov. 19, 2022. Founder Gautam Adani, the richest man in Asia and once second only to Elon Musk, fell out of the world’s top five richest to rank seventh on the Bloomberg’s Billionaire Index.
Indranil Mukherjee | Afp | Getty Images
Shares of most of Adani Group companies continued to see sharp losses for a third consecutive trading session as the company attempted to rebut short seller firm Hindenburg’s report, which accused the conglomerate of stock manipulation and an “accounting fraud scheme.”
Adani Enterprises erased earlier gains of up to 10% and last traded flat in Mumbai’s afternoon trade after the group published a lengthy response of over 400 pages to Hindenburg’s report over the weekend, saying that it will exercise its rights to “pursue remedies” to protect its investors “before all appropriate authorities.”
Adani Enterprises’ stock price remains more than 25% lower in the month to date, Refinitiv data showed. It proceeded with a secondary share sale worth $2.5 billion, which were overshadowed by a rout that wiped out a total of $48 billion as of last week’s close.
Founder Gautam Adani, the richest man in Asia and once second only to Elon Musk, fell out of the world’s top five richest to seventh place on the Bloomberg’s Billionaire Index.
His net worth fell $27.9 billion year to date, the index showed. It peaked at $150 billion on Sept. 20, 2022, before falling to to $92.7 billion as of last week’s close, according to the index.
Despite small gains seen in Adani Enterprises, other affiliates of the Adani Group continued to plunge.
‘Attack on India’
Adani Group said Hindenburg’s allegations were a “calculated attack on India, independence, integrity and quality of Indian institutions, and growth story and ambition of India,” in the response it released over the weekend.
The group’s chief financial officer Jugeshinder Singh said in an interview with CNBC-TV18, an affiliate of CNBC, that the value of Adani Enterprises has not changed “simply because” of share price volatility, adding it instead lies in its “ability to incubate new businesses.”
He added that he is confident Adani Enterprises‘ follow-on public offering will be fully subscribed, calling Hindenburg’s report “simply a lie” and the timing of the report “malicious.”
Hindenburg on Monday morning described the group’s response “bloated” and claimed it “ignores every key allegation” against the conglomerate that it raised.
“Fraud cannot be obfuscated by nationalism of a bloated response that ignores every key allegation we raised,” the short seller titled its response to Adani Group.
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