The Meta Platforms Inc. logo can be seen at the Viva Technology conference dedicated to innovation and startups, held at the Porte de Versailles exhibition center in Paris, France on June 17, 2022.
Benoît Tessier | Reuters
As earnings season approaches, many companies are hinting at a difficult year ahead.
On the other hand, it is daunting to invest in such a stressful environment. To make the process easier, here are his top five stocks picked by Wall Street’s top analysts, according to his TipRanks, a platform that ranks analysts based on past performance. .
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alphabet
After a slump in the stock market last year due to many factors affecting the tech sector, alphabet (Google) reports its weakest seasonal quarter of the year on Thursday. From relatively low digital ad spending and regulatory crackdowns on digital advertising, to rising costs and interest rates, Google has endured it all. Needless to say, the company expects a continued slowdown in growth in the fourth quarter.
Nonetheless, Monness, Crespi, Hardt, & Co. analyst Brian White expects the results to match his expectations. Analysts expect consecutive sales to increase by 10%, meaning growth has slowed quarter by quarter. That’s significantly lower growth than typically expected in Alphabet’s typical fourth-quarter report (he averaged 17% over the last four quarters in December).
However, Google Ads revenue growth was hit hard by a slowdown in digital ad spending, said White. snap affected by imbalance Apple Privacy initiatives, most notably app tracking transparency, and other factors. ”
Analysts expect year-over-year digital ad spending to improve in the second half. White’s estimates also suggest that Google advertising revenue will return to growth in his second quarter of 2023.
White reiterated his Buy rating for the stock with a target of $135. This analyst ranks him 66th among nearly 8,300 analysts tracked on TipRanks. His ratings are profitable 64% of the time, with each rating generating an average return of 18%.
meta platform
Another technical name on Brian White’s list is: meta platform (meta) is set to report fourth-quarter earnings on Wednesday, “after a heavy blow to 2022,” according to analysts.
The headwinds the company faced last year, including Apple’s App Tracking Transparency privacy initiative, slowing ad spending, exorbitant investments in the metaverse, and regulatory scrutiny, aren’t expected to completely disappear in 2023. TipRanks)
Over the past 52 weeks, Meta’s stock price has nearly halved. Earnings in early 2023 have helped narrow last year’s losses.
However, a leaner cost structure and lessened challenges should provide relief this year, thanks to significant reductions in operations and other initiatives. Additionally, in the long term, White expects the Metaverse to benefit from long-term digital advertising trends and innovations.
“Over the last five years, annual revenue has grown 34%, EPS has achieved a CAGR of 32%, generating attractive operating margins. But we expect the current macroeconomic and geopolitical environment to weigh on advertising spending over the next few quarters,” he said, echoing a buy valuation on the stock with a target of $150. I was.
WNS
India based business process management company WNS (WNS) is next in the list. The company’s solid sales pipeline reflects a healthy demand environment masking economic headwinds. This leaves Barrington analyst Vincent Colicchio “confident in his ability to generate solid earnings and adjusted EPS growth in fiscal 2023 and beyond.”
The company recently posted quarterly results that beat Street’s estimates, thanks to strong demand for its services and products. “As of the end of the third quarter of fiscal year 2023, the company’s sales pipeline is strong and at record levels, with a gradual decline in the sales cycle reflecting strong demand. The sales cycle has declined in recent quarters, as we have accelerated decisions to improve efficiency through innovation,” Colicchio said. (See his WNS stock chart on TipRanks)
The analyst was encouraged by the fact that WNS has failed to perceive meaningful pressure from the economic headwinds weighing on its peers. Challenges such as volume pressure, productivity issues, delays and cancellations have not been a hindrance to business growth.
Colicchio reiterated its buy rating on the stock with a price target of $97, raising its earnings per share forecasts for fiscal years 2023 and 2024 to $3.86 and $4.14 from $3.78 and $4.12, respectively.
The analyst is currently number 282 out of nearly 8,300 analysts tracked by TipRanks. Moreover, 62% of his valuations are profitable, with an average return on each of him of 13.1%.
BRCMore
BRCMore (BRCC) A unique company. The operations of Black Rifle Coffee Company are founded and led by veterans. The company was founded to provide active duty military, veterans and first responders with premium his coffee, content and merchandise.
BRC has been on Tigress Financial Partners analyst Ivan Feinseth’s buy list for the past few weeks. Analysts have a $19 price target on the company. (See his BRC insider trading activity on TipRanks)
Feinseth believes the company is a robust emerging high-growth lifestyle investment opportunity, serving a loyal and niche customer base and offering meaningful growth opportunities through product innovation and a digitally native omnichannel sales strategy. I’m confident.
BRCC recently moved from short-term building of restaurants (Outpost) and DTC (Direct-to-consumer) sales to pre-packaged (k cups of coffee) beverages,” explained the 5-star TipRanks-rated analyst.
Feinseth’s beliefs are credible, considering he’s ranked 185th out of about 8,300 analysts in the TipRanks database. Aside from this, it is also worth considering his trajectory of 63% profitable valuations, each rating giving him an average return of 12.1%.
Starbucks
Retailer of the world’s largest specialty coffee chain Starbucks (SBUX) is also one of Ivan Feinseth’s favorite brands this year. The company continues to implement a number of growth drivers. This includes new product development, global coffee he alliances and continued store growth. Analysts observe that Starbucks also enjoys strong brands, his equity and a loyal customer base that will help drive a new transformation plan for long-term growth.
“SBUX continues to improve operational efficiencies and customer experience by leveraging ongoing innovation, new technology and new store formats,” said Feinseth, citing a Starbucks purchase rating of $136. I repeated.
Additionally, the company’s focus on expanding its product portfolio to offer new health and wellness beverages, teas, and staple foods will help it grow its late-night customer base. (See Starbucks payout dates and payout history on TipRanks)
Feinseth said that staying abreast of changing industry trends, Starbucks is investing in new digital initiatives to improve customer service, supply chain management, loyalty programs, mobile ordering and e-commerce capabilities. I was.
