VMware at NYSE, December 14, 2021.
The market is about to begin what should be a quiet holiday week, but key catalysts are on the horizon.
The stock market is closed on Thursday for Thanksgiving Day, and it is expected to close at 1 p.m. on Friday. Investors are on their toes for December: The Federal Reserve is meeting once again and a burst of economic data, including November payrolls, is on the way.
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More volatility may be ahead, all the more reason for investors to take a long-term view and pick stocks that can weather the tumult.
Here are five stocks picked by top Wall Street pros, according to TipRanks, a platform that ranks analysts based on past performance.
software company vmware (vmw) awaits antitrust approval before being acquired by Broadcom (AVGO). After the transaction closes, VMware shareholders can choose to receive $142.50 per share in cash or 0.2520 Broadcom shares for each VMware share. That’s why Monness Crespi Hardt analyst Brian White reiterated his buy rating and $136 price target on the stock ahead of VMware’s quarterly results.
White believes that VMware’s price-to-earnings ratio of 19x is modest for a software company, and combined with the benefits of the deal with Broadcom, the company has been able to stay mostly above the carnage in the software industry. technology this year. (See VMware stock price and analysis on TipRanks)
“We believe VMware offers a unique cloud value proposition and the economic benefits of its business model are clear,” White said. For the upcoming quarterly results, the analyst expects the company to be on track to meet its high and low estimates.
Whites rank at 657e position among a list of more than 8,000 analysts on TipRanks. He passed with 56% of his marks, with each mark earning an average return of 8.9% over the past year.
chip company Lattice Semiconductor (LSCC) looks forward to making the most of untapped opportunities in the Field Programmable Gate Arrays (FPGAs) market, a niche semiconductor market that allows customers to reconfigure hardware after manufacturing.
After a discussion with the company’s new management, Susquehanna analyst Christopher Rolland noted that the company’s new FPGA platform, Avant, is quickly gaining traction with test customers. Management expects this platform, which is slated to launch in December, to add about $3 billion to the company’s total addressable market, bringing it to $6 billion. (See Lattice Semiconductor financial statements on TipRanks)
Although Rolland has shed some light on Lattice’s technology, he seems encouraged by the new management team’s vision to pull the company out of a growth rut. The analyst notes that the team has “overhauled its entire roadmap, strengthened its supply chain and expanded into new markets.”
With those comments, Rolland reiterated a buy quote on LSCC stock with a price target of $75. He holds the 31st position among more than 8,000 analysts followed on TipRanks. Notably, 68% of its ratings were profitable and each rating generated average returns of 21.6%.
Dentsply Sirona (RADIOGRAPHY), the professional manufacturer of dental products and technologies, is struggling with underperformance in the United States and China, as well as currency headwinds. The latest quarterly results reflected these challenges, with the company falling short of profit and revenue expectations.
Nonetheless, Barrington Research analyst Michael Petusky reiterated a buy rating on the stock, albeit with a lower price target of $40 from the $51 expected earlier. “We had anticipated a reduced forecast over the past two months as macroeconomic conditions have become more challenging,” he said. (See Dentsply Sirona’s dividend date and history on TipRanks)
Ranked #956 among more than 8,000 analysts tracked on TipRanks, Petusky has a 50% success rate with his ratings. Additionally, each of its ratings has yielded an average return of 7%.
ICF International (ICFI) is a global consulting services company serving major clients in the federal government, international governments and energy markets. The company’s marketing services segment was severely impacted during the pandemic and is still experiencing a slow recovery.
However, Barrington analyst Kevin Steinke is optimistic about the company’s roadmap to solving this problem. ICF plans to “focus on the core business marketing service lines of business transformation, retention and innovative communications.” ICF is focused on expanding its business operations, consolidating its technology offerings and pursuing significant contract opportunities. These are his long-term strategies for increasing revenue and increasing shareholder value.
Steinke raised its estimate of adjusted earnings per share for 2022 to $5.77, representing 20% year-over-year growth, from $5.59 “to reflect increased guidance stemming from the unique tax benefit. (See ICF International Hedge Fund Trading Activity on TipRanks)
Steinke stands at 417e position among more than 8,000 analysts ranked on TipRanks currently, with a success rate of 54% and average returns of 11.7% per rating.
Semiconductor foundry GlobalFoundries (SFP) is one of Deutsche Bank analyst Ross Seymore’s favorite stocks. The company’s latest quarterly report made Seymore all the more optimistic.
It is not surprising that investors’ attention is currently fixed on the headwinds that threaten the economy in the months to come. GlobalFoundries has acknowledged these hurdles and even reduced its Q4 usage forecast, which would impact gross margin. Nevertheless, the company still expects to be able to increase revenue in 2023. (See GlobalFoundries Inc stock chart on TipRanks)
Seymore reiterated a buy rating on the stock with a price target of $67. “Overall, even with our estimates below for 2023, we continue to believe that the GFS share price can remain resilient as co-specific drivers (one-off processes, share gains via LTAs and redistribution geopolitics of future fabless manufacturing plans, cost reductions, etc.) offset macro headwinds,” the analyst said.
Seymore is ranked 18e among more than 8,000 analysts on TipRanks. Its ratings have a success rate of 74%, each generating average returns of 22.4%.
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