Top Wall Street analysts bet on these stocks to brace for a sharp downturn

Investors' attraction has returned to the Federal Reserve aft a hot November jobs report past week.

That's due to the fact that adjacent though the cardinal slope has pushed involvement rates higher, the system continues to adhd jobs and wages support rising. Friday's study connected past month's payrolls amazed investors and chilled sentiment.

Nevertheless, investors request to support a longer-term outlook arsenic they determine however to champion presumption their portfolios. To that end, present are 5 stocks chosen by Wall Street's apical pros, according to TipRanks, a work that ranks analysts based connected their way record.

While bundle institution VMware (VMW) reeled from lackluster quarterly results, Monness Crespi Hardt expert Brian White maintained his affirmative condemnation connected the stock.

Importantly, the institution volition soon beryllium acquired by Broadcom (AVGO). According to the statement betwixt the companies, VMware shareholders tin either currency successful their shares astatine $142.50 per stock oregon take to speech their holdings for 0.2520 shares of Broadcom for each stock of VMware. However, successful each probability, shareholders whitethorn extremity up with a 50-50 divided betwixt currency and stock.

This is important, arsenic this woody has enabled VMware to "dodge the 2022 tech apocalypse," successful White's words, with the banal up 4% successful 2022.

Given the pending acquisition, VMware did not contented immoderate guidance. However, White remains bullish connected the ground of the shareholder payment arsenic good arsenic the unchangeable presumption of VMware successful the tech sector.

"VMware's net stay depressed aft assertive concern initiatives and a exemplary transition. At the aforesaid time, the existent economical and geopolitical situation is daunting, resulting successful a much uncertain future, creating a greater allure for large, well-managed, stable, tech companies with payment from integer transformation, specified arsenic VMware," White theorized.

White is ranked No. 697 among much than 8,000 analysts tracked connected TipRanks. The expert has a grounds of 55% palmy ratings successful the past year, with each standing generating mean returns of astir 8.7%.

Oil and earthy state exploration institution Diamondback Energy (FANG) has gained the attraction of RBC Capital Markets expert Scott Hanold aft making 2 important strategical acquisitions recently. The expert expects the acquisitions to beryllium accretive to his net per stock estimates for 2023 and 2024 by 7% to 9%.

Importantly, astatine a clip erstwhile astir each institution has worrisome near-term prospects, Hanold sees a coagulated upside to Diamondback's near-term escaped currency flows, acknowledgment to its latest acquisition of Permian Basin assets from Lario. (See Diamondback Dividend Date & History connected TipRanks)

The expert is besides upbeat astir Diamondback's plus monetization plan, and believes that it volition assistance the institution support a cleanable equilibrium expanse adjacent aft the 2 caller acquisitions. "We deliberation FANG volition inactive support an adjusted leverage ratio beneath 1.0x pursuing the adjacent of the 2 transactions. However, we deliberation the institution volition advancement much to transcend its $500 cardinal plus monetization people with a absorption connected midstream assets that commercialized astatine much robust values successful the market," said Hanold, who reiterated a bargain standing and $182 terms people connected the stock.

Impressively, Hanold holds the 8^th presumption among much than 8,000 analysts connected TipRanks, and boasts a 70% occurrence rate. Each of his ratings has generated mean returns of 33.7%.

The adjacent banal connected our database is Microchip (MCHP), a starring shaper of embedded power solutions. The company's vulnerability to secular maturation trends successful the end-markets of 5G, artificial intelligence/machine learning, Internet of Things (IoT), precocious operator assistance systems (ADAS), and electrical vehicles bode good for the institution successful the agelong run.

Recently, Stifel expert Tore Svanberg precocious reiterated a bargain standing connected MCHP banal and adjacent accrued the terms people to $80 from $77. (See Microchip Stock Chart connected TipRanks)

The expert believes that Microchip is good positioned to "manage a softer landing comparative to peers during broader manufacture correction," connected the ground of coagulated near-term backlog visibility, antiaircraft end-market exposure, resilient pricing of proprietary products, etc.

Svanberg stands astatine No. 41 among much than 8,000 analysts followed and ranked connected TipRanks. The expert besides has a coagulated way grounds of 65% profitable ratings and mean returns of 20.4% for each.

Analog Devices (ADI) is different banal connected Tore Svanberg's bargain list. The shaper of high-performance analog, mixed-signal and integer awesome processing integrated circuits holds the biggest shares of the information converter and amplifier markets.

"We judge ADI is simply a formidable high-performance analog/mixed-signal powerhouse with pro forma CY21A gross of (nearly) $10 billion, and the starring challenger to the existent manufacture heavyweight, TXN (Texas Instruments)," said Svanberg.

Analog Devices besides has beardown currency travel generating capabilities, which kept Svanberg bullish: The institution has generated $3.50 cardinal successful the past 12 months. (See Analog Devices Hedge Fund Trading Activity connected TipRanks)

The expert sees Analog Devices outperforming its peers successful the contiguous challenging macroeconomic environment. Based connected his observations, Svanberg accrued his terms people to $195 from $190.

A starring sanction successful the cybersecurity space, CrowdStrike (CRWD) disappointed investors and analysts alike precocious with weaker-than-expected guidance. This underscored the vulnerability of the bundle assemblage to macroeconomic forces.

Nonetheless, Deutsche Bank expert Brad Zelnick remained focused connected the longer-term prospects of CrowdStrike, calling it 1 of the 3 best-positioned information companies to flooded the beardown headwinds. (See CrowdStrike Holdings Financial Statements connected TipRanks)

Zelnick observed coagulated traction successful ample deals and a beardown existing lawsuit base, which tin enactment the institution done challenging times.

The expert besides observed that contempt not being capable to present connected the top-line portion of the business, CrowdStrike was accordant successful maintaining coagulated margins, reflecting "the flex/leverage successful the concern model."

Although Zelnick lowered the terms people to $150 from $230 to relationship for his little estimates, the expert maintained a bargain standing aft looking beyond the storm.

Interestingly, among much than 8,000 analysts connected TipRanks, Zelnick is ranked 128^th, having delivered palmy ratings 67% of the clip successful the past year. Moreover, each of his ratings has garnered mean returns of 15.10%.