Reporting season has arrived again, and well-known companies have reported this week. Volatility remains a focus for investors, and inflation continues to exacerbate pressure across industries. Short-term uncertainty remains blurred, although long-term investing can often overcome the day-to-day noise.
Let’s take a look at five stocks that analysts think will perform well going forward.
Rising inflation does not affect everyone equally: people from the lower socio-economic strata and young people are feeling the brunt of the impact. When a company is into e-commerce, it is helpful to have cheaper options in their offer. for ebay (ebay), this comes in the form of refurbished and used product categories, an area the firm is expected to expand.
Colin Sebastian Robert W. Baird recently reported on the online marketplace and auction site, noting that in regards to inflation, “eBay’s unique offering of used and low-priced items should alleviate these hurdles, or even benefit the platform.” He went on to explain that Generation Z consumers are very interested in this segment: according to the company’s survey, 80% of them buy goods.
Sebastian recommended the stock as a Buy and added a target price of $80 per share.
The senior analyst further explained that “the platform’s focus on value for money could help offset lower consumer spending among low- and middle-income consumers.”
In the near future, the analyst expects EBAY to make several announcements such as a digital wallet and increased focus on auto parts sales. (See Ebay website visits on TipRanks.)
E-commerce companies have had a hard time beating pandemic-era comparisons when reporting quarterly earnings as slowing consumer trends combine with supply-side constraints and an inflationary environment. Sebastian expects Ebay to fulfill its forecasts on May 4th, although a rise and rise would be very optimistic given these issues.
Out of almost 8,000 analysts on TipRanks, Sebastian is ranked 158th. Its success rate is 52% and the average return per rating is 37.1%.
The tech sector has been one of the hardest hit sectors recently, as many of its large firms were still seen as risky and overpriced when the economy was booming. However, Google’s parent company Alphabet (google) was largely protected from damage, in part due to the fact that its advertising segment was mostly protected from Apple (AAPL) iOS 14.5 privacy update last summer.
Now that I’ve weathered the storm Brian White of Monness said he expects stock to be stable and robust ahead of Tuesday’s earnings announcement. In a recent report, he noted that GOOGL fared better than average in terms of its reach, and elaborated that “we believe Alphabet will continue to capitalize on the age-old trend of digital advertising and test the power in the cloud.”
White recommended buying the stock and added a price target of $3,850 per share.
He’s also excited about the upcoming Alphabet investor conference in mid-May, which could spark some hopeful investor sentiment for the tech conglomerate.
So far, White has said that platforms like Google Search and Youtube Ads have fueled growth largely unchecked by Apple’s software changes. Companies such as Meta Platforms (FB) and binding (CLICK), but there is something to worry about. (See Alphabet stock charts on TipRanks)
On the legislative front, a highly accurate analyst acknowledged that Alphabet is likely to face continued antitrust litigation in the US and is currently dealing with some infringement due to the recently enacted European Digital Markets Act (DMA).
On TipRanks, White is ranked 171st out of nearly 8,000 analysts. He was right in 65% of his shares and returned an average of 29.7% on each.
Just by going to any travel search engine, the global demand recovery is once again in full swing. Prices have skyrocketed across the board as pent-up consumers look to finally have their summer vacation, see family, or just experience something new for a change. After derailing the delta option last summer, it looks like that option is set in stone. Combined with mask mandates originating within the country, Booking holdings (BKNG) is waiting for a strong Q2.
Tigress Financial Ivan Fineset identified these benefits in a recent post, noting that the travel search engine conglomerate will benefit as it is already seeing strong growth in its hotel, flight and car rental segments.
Finest rated the stock as a buy and optimistically raised its price target to $3,210 from $3,150.
In addition to the apparent resurgence in both corporate and leisure travel and excursions, the five-star analyst mentioned that “BKNG continues to benefit from advertising, commerce and other lines of business that are also experiencing strong growth.”
Booking expected to report first quarter earnings May 4th.
The company has also made some encouraging acquisitions that have strengthened its vertically integrated ecosystem. Companies such as Getaroom, FareHarbor and Etraveli are expected to provide a solid consumer experience.
Feinseth wrote that BKNG’s “leading market position, underpinned by strong brand equity and a diversified global footprint, as well as its robust execution capabilities, technologically advanced platform, and value realization from its complementary acquisition strategy” is expected to continue to be profitable.
Of nearly 8,000 TipRanks analysts, Fainseth is ranked 65th. He was successful, valuing stocks 68% of the time, and his average return was 30.1%.
The world of fast fashion has experienced massive growth over the past few years, but the industry’s production methods are still a thing of the past. The concern for the environment is still relevant for the big players in the industry, and the smaller ones don’t mind cutting costs either. Includes Kornit Digital (CRNT), an Israeli digital printing systems company that is currently disrupting supply chains.
While stocks are down significantly since the start of the year at last glance, some analysts see a new discounted upside opportunity.
One of those bullish voices in the crowd James Ricciuti of Needham & Co. who wrote that “Cornith’s business remains healthy” and he foresees “strong tailwinds” in the next year and a half. KRNT’s business model is supported by its waterless direct-to-garment and fabric printing systems and is positioned to further capture market share in its industry.
Rikkiuchi reiterated his buy recommendation and lowered his price target to $155 from $202. The lower target price is due to the overall decline in growth stocks and technology stocks in the stock market. (See Kornit Digital Risk Factors on TipRanks)
Kornit is acquiring both large and small customers and is experiencing strong momentum from customers wanting to emphasize sustainability. The five-star analyst wrote: “In recent weeks, leading apparel retailers have highlighted the need to mitigate supply chain risk through near-shoring and onshoring strategies, while major e-commerce apparel companies have stressed the importance of adopting advanced digital manufacturing workflows. for faster delivery of short-term and individual orders.
Out of nearly 8,000 expert analysts, Rikkiuchi is ranked 144th. He was right about his stocks 62% of the time, and the average return on each was 27.8%.
Along with the rest of the tech, e-commerce and pandemic stocks, Carvana (CVNA) has declined significantly over the past couple of quarters. The stock is down more than 77% from its August 2021 highs, and now macroeconomic headwinds are holding back its business model. A large e-commerce used car dealer has taken a toll on its volumes and hence its margins, although its management said the path to recovery is clear.
Agree with this opinion Scott Devitt Stifel Nikolaus, who noted that Carvana is taking steps to “normalize service levels, reduce delivery times and improve inventory levels.” If the right steps are taken, the current problems the company is facing may not last long.
Devitt rated the stock as a buy and modestly cut his price target to $140 from $170.
The highly rated analyst argued that current perceptions of the company and the concomitant drop in its share price were exaggerated, and that its shares now represented a significant discount (see below). Carvana website visits on TipRanks)
In his report, he wrote that “operational improvements should lead to consistent growth in production volumes, revenues and the number of GPUs.” [gross profit per unit]”, although the overall market slowdown is wiping out visibility in the short term.
Supporting his stock hypothesis, Devitt mentioned that Carvana is “a leading e-commerce platform and is well positioned with the infrastructure, technology and expertise required to operate a nationwide network.”
Among nearly 8,000 professional analysts, Devitt ranks 538th. It maintains a success rate of 49% and an average return of 19.7%.