Markets dropped to start out Tuesday, with the Nasdaq leading the charge lower, down over 2%. While the past couple of weeks have been somewhat disappointing in terms of market performance, earnings season actually has been fairly positive. It’s just that the market headwinds have been overpowering.
Lockdowns in Shanghai are taking their toll globally. Even some analysts are suggesting the worst is yet to come. What is even worse is that many consider these lockdowns inhumane, and many studies have shown that lockdowns are one of the most ineffective methods of fighting COVID-19. The economic impact alone can be crippling to the individual and very disruptive on a geopolitical level.
A recent report surfaced from BofA’s Helen Qiao, who cut her forecast for China’s gross domestic product (GDP) to 4.2% from 4.8%. This change is due in part to this most recent round of lockdowns. For comparison, China’s GDP was growing like clockwork at a 6% pace going into 2019.
Qiao was quick to comment in the report about the impact of these lockdowns, “A more severe impact on production and supply chains is likely to show up starting April, considering the Yangtze River Delta region surrounding Shanghai accounts for 21% of China’s industrial production and 36% of exports.” She goes on to suggest that these supply-chain difficulties could persist, at least until the end of the second quarter.
With all these headwinds, and a booming earnings season, it really makes for a stock-picker’s market.
24/7 Wall St. is reviewing additional analyst calls seen on Tuesday. We have included the latest call on each stock, as well as a recent trading history and the consensus targets among analysts. Note that analyst calls seen earlier in the day were on American Express, Apple, AT&T, CrowdStrike, Starbucks, Twitter and many more.
Boyd Gaming Corp. (NYSE: BYD): Susquehanna upgraded the stock to Positive from Neutral and raised the $73 price target to $74. The 52-week trading range is $50.38 to $72.72, and shares were trading near $63 on Tuesday.
Interactive Brokers Group Inc. (NASDAQ: IBKR): Goldman Sachs upgraded the shares from Neutral to Buy with a $90 price target. Shares traded near $63 on Tuesday, in a 52-week range of $56.95 to $82.83.
J.B. Hunt Transport Services Inc. (NASDAQ: JBHT): Susquehanna’s upgrade to Positive from Neutral included a price target hike to $217 from $210. The 52-week trading range is $155.11 to $218.18, and shares traded near $173 apiece on Tuesday.
NextDecade Corp. (NASDAQ: NEXT): Though Stifel lowered its Hold rating to a Sell, the firm raised the $2 price target to $4. The stock traded near $5 on Tuesday. The 52-week trading range is $1.84 to $7.81.
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Redfin Corp. (NASDAQ: RDFN): Piper Sandler downgraded it to Underweight from Overweight and slashed the $40 price target to $11. The 52-week trading range is $11.83 to $72.69, and shares were trading near $12 on Tuesday.
Rio Tinto Group (NYSE: RIO): The Barclays downgrade was to Underweight from Equal Weight. Shares were trading near $69. The 52-week range is $59.58 to $95.97.
Werner Enterprise Inc. (NASDAQ: WERN): Susquehanna lifted its Neutral rating to Positive and yet cut the price target to $46 from $49. The stock traded near $39 on Tuesday. The 52-week trading range is $36.29 to $49.76.
Zions Bancorp. N.A. (NASDAQ: ZION): Raymond James downgraded the shares to Market Perform from Strong Buy. The stock traded near $57 on Tuesday, in a 52-week trading range is $47.06 to $75.44.
With economic and market uncertainty prompting investors to look for safe havens, seven “sin” stocks look like outstanding values that should hold up well if things remain rocky, even in a protracted bear market.
Also note that one key analyst favors three somewhat under the radar internet stock picks now.
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