The week of July 13 was another wild one for the equity markets. Investors are getting to grapple with a nine-year-old bull market that is facing rising gross domestic product in the United States and a “peak earnings” scenario while global growth is slowing. Also front and center is that the Federal Reserve keeps wanting to raise interest rates as the economy reaches full employment, even as trade war and tariff fears keep arising each week.
Many investors are looking for new ideas and outside advice on where to look for opportunities for the second half of 2018. After all, buying the dips just hasn’t been as reliable as it had been in 2017 and the prior few years. It turns out that analysts on Wall Street are still identifying undervalued stock stories where big upside may be made if the expected scenarios come to fruition. Some analyst calls are looking for much larger than normal upside, and the market volatility and the endless flow of major non-equity news is causing some of these calls to be overlooked or missed entirely by the investment community.
24/7 Wall St. reviews hundreds of analyst upgrades and downgrades each week, and a review of the analyst calls from the week of July 13 presented seven analyst picks that were either missed, overlooked or even ignored by investors. This tends to happen frequently during volatile markets, but there was only one day this last week which butted heads with bullish investors.
We have included details about each analyst call that seemed to be overlooked this week, along with trading activity around each call. Also provided in this synopsis are the trading history around each company, the consensus analyst price target from Thomson Reuters, and additional color around each call if available. Sometimes it is these overlooked research calls issued when investors are distracted that can bring the most rewards.
Here are seven stocks with big analyst calls that seemed to be overlooked or ignored by investors during the week of July 13.
BlackRock: ETFs to the Future!
BlackRock Inc. (NYSE: BLK) had a quiet week after rallying Monday and Tuesday with the markets. What stood out was a Friday, July 13, call in which the money management giant and manager of the iShares ETF family shares was raised to Outperform with a $590 price target at Keefe Bruyette & Woods. This represented an implied total return of more than 18% to the target (dividend included), but BlackRock’s stock also was ignored after Credit Suisse’s refreshed Top Picks list included it with a $743 price target that implied just over 50% in total return expectations.
BlackRock has a consensus price target of $608.58 and a 52-week trading range of $408.62 to $594.52. Year to date, the stock was down about 2%.