The futures were lower on Wednesday as the onslaught of S&P 500 earnings continues this week. With one-third of the S&P 500 reporting and big tech leading the earnings parade Tuesday after the close, the market continues to hold its ground despite investor euphoria, gigantic margin debt and being soundly overbought. Interest rates that had rolled over some last week trended higher again, and inflation is being mentioned almost daily.
Despite inflationary pressures, the Federal Reserve pledges to keep interest rates contained, which could be among the reasons for the continued moves higher in the equity markets, even after sell-offs. Also note that money markets continue to see massive inflows, which is another big plus.
With major Wall Street firms still warning of the potential for impending 5% to 10% correction across the board, it makes sense for investors to continue building some cash reserves into the market strength while repositioning portfolios for the second quarter and the rest of 2021.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
These are the top analyst upgrades, downgrades and initiations seen on Wednesday, April 28, 2021.
ABB Ltd. (NYSE: ABB): JPMorgan raised the stock to Neutral from Underweight. The shares have traded in a 52-week range of $16.80 to $33.48 and have a consensus price target of $34.11. The final trade for Tuesday was reported at $33.06.
Advanced Micro Devices Inc. (NASDAQ: AMD): Summit Insights downgraded the chip giant to Hold from Buy. The stock has traded in a wide 52-week range of $48.42 to $99.23 and has a $102.50 consensus price objective. The final Tuesday trade was at $85.21 a share. The stock was up almost 5% in Wednesday’s premarket after the company reported solid results Tuesday in which its data center revenue doubled.
Alarm.com Holdings Inc. (NASDAQ: ALRM): Zacks named this as the Bear of the Day stock. The firm said that the high valuation here is sounding the alarm. Shares last closed at $95.23 and have a consensus price target of $107.50.