Apple CEO Tim Cook introduces the new iPhone 14 at an Apple event at its headquarters in Cupertino, California, USA, on September 7, 2022.
Carlos Barria | Reuters
The market outlook is becoming increasingly uncertain given unmanageable inflation and a slowing economy.
Stocks closed Friday lower. Ultimately, they were unable to recover from a deep sell-off on Tuesday in which the Dow Jones Industrial Average lost more than 1,200 points.
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In this context, investors need to look beyond the current turbulence when choosing their investments. To that end, here are five stocks chosen by top Wall Street professionals, according to TipRanks, a platform that ranks analysts based on their performance history.
Apple (AAPL) needs no introduction. The iPhone maker has been beating all the odds and moving forward with compelling product launches. On September 7, the company held its big fall event, where it launched its long-awaited iPhone 14 series, along with Apple Watch and AirPods.
After the act, the analyst Monness Crespi Hardt brian white he said the product introductions enhanced “a portfolio that has never been stronger and a more pervasive platform.” (Watch Apple Hedge Fund Trading Activity in TipRanks)
White was cautious that the treacherous macro environment may make consumers hesitant to buy a new smartphone. However, he was encouraged by the fact that the company did not increase the prices of iPhone 14 smartphones.
White points out that Apple’s current price-earnings ratio is above the average of recent years. However, looking at the long-term business model, the analyst was optimistic that Apple’s strong services business has created a strong foundation for consumer confidence.
The analyst, who is in the 470the Positioned among nearly 8,000 analysts tracked on TipRanks, he was assigned a buy rating on AAPL stock, with a price target of $174.
White has a track record of a 57% success rate on his qualifications, with each qualification generating an average return of 11%.
The company recently signed an agreement to acquire shale producer Tug Hill. Following the news, an analyst at RBC Capital Markets scott hanold reiterated a buy rating on EQT shares, raising the price target from $2 to $57. “Recent comments from management during its 2Q22 conference call highlighted that acquisitions should be more compelling than buying back their own shares and should also contribute to asset quality, including lowering the corporate break-even point, and we believe that this deal checks those boxes,” Hanold said. , explaining his optimism. (Watch EQT Blogger Opinions and Sentiment in TipRanks)
According to the analyst’s calculations, the acquisition of Tug Hill can bring EQT’s free cash flow to $6 billion in 2023 and also increase earnings per share by 10% to 15%. The additional FCF can be used to gain further authorization for share buybacks, but Hanold believes the company is more likely to use it to reduce its debt.
“We believe EQT stock should outperform its peers over the next 12 months. EQT is well positioned with a large asset base focused on the Appalachian Basin,” said Hanold, who is ranked No. 14 out of nearly 8,000 analysts. tracked in TipRanks.
In total, 66% of Hanold’s ratings have successfully generated an average return of 30.9%.
Another oil and natural gas exploration and production player, Devon Power (DVN), is among the favorite options of the best market analysts. The favorable geographic location of the company is driving most of its business. The rich Delaware, Eagle Ford, Anadarko, Powder River and Williston basins are Devon Energy’s core areas of operation.
Earlier this month, the company entered into a liquefied natural gas (LNG) association with Midstream Dolphin. The deal involves an agreement between both parties for a long-term liquefaction capacity (1Mt/yr) on Delfin’s first floating LNG vessel, with the ability to add another 1Mtpa on the first project or on future vessels.
Following the announcement, Mizuho Securities analyst Vincent Lovaglio He seemed optimistic about the deal’s prospects, reiterating a buy recommendation on the company with a $91 price target. The analyst believes that “downstream investment in liquefaction can connect Permian natural gas, which would otherwise be at a price disadvantage, to premium global markets, using excess free cash flow today to convert a molecule that was once considered a potential liability into an asset.” (Watch Devon Energy Dividend Date and History in TipRanks)
In addition, the deal could boost Devon’s annual dividend by around 30%. Lovaglio is ranked #1 out of nearly 8,000 analysts on TipRanks. Notably, 91% of his ratings have been successful, with each rating giving an average return of 46.2%.
semiconductor component manufacturer Broadcom (AVGO) has recently focused on incorporating high-margin software into its product portfolio with the help of organic efforts and strategic acquisitions. Thus, Broadcom’s $61 billion purchase of virtualization software firm VMware caught the attention of several analysts.
mizuho analyst vijay rakesh was one of the optimists about the acquisition. “With VMware, we believe AVGO could follow a similar strategy to Symantec-CA, in which it kept key core assets and shed some low-volume, high-touch markets,” he said, noting the company’s focus on a higher margin growth. (Watch Investors in Broadcom stock in TipRanks)
The analyst believes the acquisition will significantly boost Broadcom’s earnings per share. The analyst believes that the company’s shares can reach a price of $793 and reiterated the recommendation to buy the stock.
Broadcom’s strong market position in several domains, operating leverage and focus on acquisitions that increase its margins make Rakesh believe in its value unlocking potential.
Ranked 128th out of around 8,000 analysts on TipRanks, Rakesh has been successful with 57% of his ratings. In addition, each of his valuations has generated an average return of 20.2%.
Another of Vijay Rakesh’s top picks for this season is the semiconductor giant. nvidia (NVDA). The company was recently in the spotlight for leading a $400 million hit to revenue in the third quarter due to US restrictions on sales of high-performance AI chips in China.
After speaking with senior Nvidia officials, Rakesh was again bullish on Nvidia, reiterating a buy rating on the stock with a $225 price target. Rakesh was bullish about the company’s high-end Hopper architecture, which is on the right track despite the ban. That’s because most of the development team is in the US (see Nvidia Stock Chart, Price History & Charts in TipRanks)
“We believe the Hopper Ramp will not be affected by the export ban with the updated 8-K allowing supply chain freedom through Hong Kong and China,” said Rakesh, who believes this loophole is a major breath for the company.
Additionally, Nvidia supports more than 90% of all AI workloads in the data center world. AI is likely to provide the company with a key secular growth opportunity resistant to macro risk.