Top Wall Street analysts say buy these stocks amid market uncertainty

2 years ago 102

Tim Boyle | Bloomberg | Getty Images

Stocks ended Friday connected a affirmative note, but an uncertain week – with a Federal Reserve gathering – looms ahead.

The 3 large averages notched gains for Friday's league and were higher connected the week. Nevertheless, investors are apt watching the Federal Reserve's upcoming argumentation gathering to spot however the cardinal slope volition proceed connected involvement complaint hikes. That means a marketplace shake-up could beryllium successful store.

Investors request to look past short-term marketplace developments and prime retired stocks that tin withstand these uncertain times. Here are 5 stocks picked retired by the apical Wall Street professionals, according to TipRanks, a level that ranks analysts based connected their way records.

Stride

Premier K-12 acquisition services supplier Stride (LRN) is simply a dependable institution that reported an net miss but bushed gross expectations successful its astir caller quarter. Moreover, the banal softly entered the oversold territory (with the comparative spot scale falling beneath the 30 mark), which is simply a motion for investors to instrumentality involvement successful it.

Barrington Research expert Alexander Paris analyzed the net show and studied the outlook. The coming months person respective headwinds tied to the broader economy, and the expert reduced his 2022 estimates to bespeak these. Nonetheless, Paris noted that though the institution has fixed guidance connected little margins for the year, absorption inactive "believes it whitethorn beryllium capable to offset these expected declines during the twelvemonth done ongoing ratio efforts."

Despite the near-term challenges, Stride assured investors that it is inactive connected way to deed its semipermanent (FY25) fiscal goals acceptable successful 2020, and that is what led Paris to reiterate a bargain standing connected the stock, with a terms people of $50. (See Stride Blogger Opinions & Sentiment connected TipRanks)

Paris holds the 207th presumption among astir 8,000 analysts tracked connected TipRanks. With 56% profitable ratings, his convictions astir Stride whitethorn beryllium worthy considering. Moreover, each of his ratings has garnered an mean of 14.3% returns. 

Timken

Timken (TKR) develops, manufactures and markets bearings and powerfulness transmission products. Thanks to the beardown request successful the concern market, the institution has been navigating done 2022 rather well, contempt the supply-chain setbacks and rising costs.

Last week, Timken handily bushed Wall Street expectations successful its latest quarterly results, chiefly driven by its process industries portion and complemented by little firm and involvement expense. Oppenheimer expert Bryan Blair reiterated a bargain standing and $84 terms people connected the stock, citing respective upsides.

"Combining Timken's operational momentum, backlog position, coagulated extremity marketplace reads, and improved price/cost, we similar the team's prospects of achieving revised 2022 EPS guidance and driving further net maturation adjacent year. TKR's valuation should besides beryllium supportive," said Blair.

The expert was besides buoyed by a guidance assistance for 2023, which reflects the affirmative trends going into adjacent year. (See Timken Company Insider Trading Activity connected TipRanks)

Blair, who has a No. 302 ranking retired of astir 8,000 analysts connected TipRanks, has a 60% ratings occurrence rate. Moreover, each of his ratings has brought 15.5% returns connected average.

Texas Instruments

Semiconductor bellwether Texas Instruments (TXN) is different banal to instrumentality enactment of, contempt its caller downbeat guidance for the last 4th of the year. Susquehanna expert Christopher Rolland seems to agree.

The company's quarterly results came successful higher than estimates. Management expects astir end-markets (except auto) to diminution sequentially successful the 4th quarter, arsenic "weakness has dispersed beyond Personal Electronics to impact Industrial, which to day has been resilient." (See Texas Instruments Dividend Date & History connected TipRanks)

While this whitethorn dependable worrying astatine first, Rolland said that TXN banal is simply a large semipermanent investment, arsenic its durable competitory edge, which has been gained done scale, acold outweighs the near-term challenges.

"This standard vantage helps supply unmatched analog merchandise breadth (a catalog of 100k parts), broad work and income support, and manufacturing prowess," said Rolland.

Rolland, who stands astatine No. 62 among much than 8,000 analysts tracked connected TipRanks, reduced the terms people connected the banal to $195 from $215, but stayed enactment connected his bargain standing connected Texas Instruments. The expert had 63% occurrence successful his ratings successful the past year, with each standing bringing 19.8% mean returns.

Juniper Networks

Juniper Networks (JNPR), supplier of products and services for high-performance networks, precocious delivered beardown quarterly results and a coagulated outlook. The company's pipeline of deals remains beardown adjacent done the challenges of the system this year.

Going by what Needham expert Alex Henderson has to accidental astir Juniper, the banal is simply a resounding buy.

"Juniper delivered a beardown quarter, offered a healthy, yet inactive Supply-constrained usher and noted assurance successful its near, intermediate, and agelong word prospects," said the analyst. (See Juniper Networks Stock Chart & Stock Technical Analysis connected TipRanks)

Henderson said that the coagulated backlog provides a beardown upside to Juniper's gross maturation implicit the adjacent 2 to 3 years. The expert thinks a 10% gross maturation is imaginable done this timeframe.

Henderson besides cites "strong currency flow, improving merchandise line, and enlargement into the Cloud and Enterprise markets implicit time" arsenic upsides that tin assistance banal appreciation and boost the fiscal wellness of the company.

Henderson is ranked No. 144 among implicit 8,000 analysts followed connected TipRanks. He has a 55% occurrence complaint and mean returns of 17.3% per rating.

F5

Application transportation and information solutions supplier F5 (FFIV) is different of Henderson's favourite stocks for the season. The institution bushed apical and bottommost enactment estimates for its fiscal 4th fourth recently, contempt a important slowdown successful bundle revenues.

The lone substance Henderson is somewhat acrophobic astir is the gross mix, which the expert thinks is unfavorable. However, with absorption guiding 9% to 11% gross maturation for fiscal twelvemonth 23, Henderson was prompted to rise his gross and net per stock estimates. (See F5 Networks Hedge Fund Trading Activity connected TipRanks)

On the different hand, F5's bundle concern stands fragile close present and betterment is uncertain successful the near-term. This contented prompted the expert to little the terms people to $200 from $303. Nonetheless, Henderson maintained his bargain rating, reflecting his semipermanent bullishness connected the FFIV stock.

"FFIV offers a beardown blend of accelerating Revenue growth, expanding GM and Operating Margin, Strong Balance Sheet with $9.05/share successful Cash, implicit $1.2 cardinal worthy of stock repurchases authorized and escaped currency travel generation. We expect the positives to enactment a rising aggregate arsenic the banal progressively becomes a play connected Kubernetes, modern exertion workloads, and Security," said Henderson.

Read Entire Article