The futures were lower across the board on Monday, as we start the second big week of earnings after a rather calm finish last week. Investors cheered the positive retail sales report on Friday, which showed consumers are spending more than expected, as sales at U.S. retailers jumped 0.6% in June, versus the expectations for a 0.4% rise. However, the report also showed that consumers are indeed paying more for a variety of goods and services, even as the Federal Reserve contends it is just a transitory stage and should ease by the fall.
Despite the continued concerns across Wall Street about tapering of the quantitative easing program and the clear building of inflationary pressures, the Federal Reserve is vowing to keep interest rates contained. That 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 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 Monday, July 19, 2021.
ADT Inc. (NYSE: ADT): RBC Capital Markets resumed coverage on the home security giant with an Outperform rating and a $12 price target. The posted consensus target is $10.89. The stock closed trading on Friday at $10.18.
Aeva Technologies Inc. (NYSE: AEVA): Morgan Stanley started coverage with an Equal Weight rating and an $11 price target. The consensus target is $21.20. The stock closed Friday at $9.71.
Alcoa Corp. (NYSE: AA): Goldman Sachs reiterated its Buy rating on the aluminum giant and also added the stock to the firm’s Conviction List of top stocks to buy. Goldman Sachs has a $51 price target for the shares, while the consensus target is just $42.55. The stock closed on Friday at $32.95, which was down almost 5% for the day.
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