The futures are lower on Monday as we start August after an outstanding July that saw the biggest gains for the stock market in months. All of the major indices closed higher on Friday as once again the Nasdaq led the way rising close to 2%. Strong results and positive guidance from mega-cap technology giants was a large boost last week for risk assets, plus the indications from Federal Reserve Chairman Jay Powell that following another increase in the fed-funds rate in September, (which could possibly be the third 75-basis-points hike in a row), that future increases could be milder, and ultimately concluding as early as the end of the year.
Another big positive for the stock market is that despite the higher fed-funds rate, yields across the Treasury curve have continued to drop as buyers have been rushing to the safe-haven of U.S. government debt. The worrisome item for investors is why? The yield on the 10-year note has dropped a stunning 84 basis points since mid-June.
In addition, the two-year/10-year note inversion remains in place as it has for weeks with the two-year note trading at a 2.89% yield versus the 10-year note at 2.64%, a huge 25 basis-point spread. Again, the inversion suggests recession, which technically, despite White House protestations, we are now in.
Brent Crude and West Texas Intermediate oil both rallied on Friday, both closing up well over 2%, while natural gas resumed its climb higher closing Friday at $8.29 up close to 2%. Gold closed modestly higher while Bitcoin did the same with a small gain.
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 across Wall Street on Monday Aug. 1, 2022.
Alerus Financial Corporation (NASDAQ: ALRS) Hovde Group upgraded the shares to Outperform from Market Perform and slid their price target to $28 from $27. The consensus across Wall Street is posted at $26. The shares closed Friday at $24.64 up over 4%.
Carlyle Group, Inc. (NYSE: CG) Evercore ISI upgraded the private equity giant to Outperform from In Line while boosting the target price to $45 from $38. The consensus target for the stock is posted at $52.75. The stock closed Friday at $38.91 up close to 4%.
Comcast Corporation (NASDAQ: CMCSA) Wolfe Research downgraded the media and cable giant to Underperform from Peer Perform with a $39 target price. The consensus is set much higher at $51.48. The shares were last seen Friday at $37.52 down close to 5% after very disappointing second-quarter results.
Croc, Inc. (NASDAQ: CROX) Baird maintained an Outperform rating on the stock with a massive $90 target price. The consensus for the popular footwear stock is set at $89.44. The stock was last seen Friday at $71.64 up almost 8% in front of this week’s earnings report.
Deckers Outdoor Corporation (NYSE: DECK) The Baird analysts reiterated an Outperform rating and have a $375 price target for the company. The consensus target for the popular clothing and boot retailer is set at $385.21. The stock closed Friday at $313.21 up 9% after a solid earnings report crushed analysts’ estimates.
Edwards Lifesciences Corporation (NYSE: EW) Canaccord Genuity downgraded the shares to Hold from Buy and lowered the target price to $106 from $115. The consensus target is $119.65. The stock closed Friday at $100.54 down over 6% after meeting estimates for the quarter but cutting the company’s forward guidance.
ExlService Holdings, Inc. (NASDAQ: EXLS) Needham upgraded the stock to Buy from Hold with a $190 target price. The consensus is set much lower at $156.50. The last trade Friday was filled at $168.37.
Intel Corporation (NASDAQ: INTC) Baird downgraded the legacy chip giant to Neutral from Outperform and sliced the target price to $40 from $60, while Susquehanna cut the stock to Negative from Neutral and chopped the target price objective to $33 from $40. The consensus is $48.33 for now. The last Friday trade came in at $36.31 down almost 9% after the company badly missed second-quarter earnings expectations.
Lulu’s Fashion Lounge Holdings, Inc. (NASDAQ: LVLU) Baird reiterated an Outperform rating on the shares with a $10 price target which was lowered from $17 after the company cut forward estimates for 2022. The consensus target is posted at $13.50. The stock closed Friday at $5.60.
Meta Platforms, Inc. (NASDAQ: FB) DZ Bank downgraded the social media giant to Sell from Hold with a $140 target price objective. The consensus for the Facebook owner is set at a much higher $246.56. The stock closed Friday at $159.10.
Mid-America Apartment Communities, Inc. (NYSE: MAA) JMP Securities upgraded the shares to Market Outperform from Market Perform with a $220 target price. The consensus is set at $198.39. The shares were last seen Friday at $185.73.
Northrop Grumman Corporation (NYSE: NCO) Baird upgraded the defense giant to Outperform from Neutral and raised their target price to $529 from $488. That is versus the $494.87 consensus target and Friday’s closing print of $478.90 up over 5%.
NOV Inc. (NYSE: NOV) BofA Securities upgraded the stock to Neutral from Underperfrom and lifted the price target to $15 from $10. The consensus is $21.99. The stock closed Friday up 10% after posting solid results for the quarter.
O’Reilly Automotive, Inc. (NASDAQ: ORLY) Goldman Sachs reiterated a Buy rating on the stock while boosting their target price to $745 from $667. The consensus target is set at $747.44. The last trade Friday was reported at $703.59.
Ping Identity Holdings Corp. (NASDAQ: PING) BofA Securities downgraded the stock to Neutral from Buy while lowering the target price for the shares to $19 from $28. The consensus is $29. The final trade on Friday was filled at $17.15.
Qualcomm, Inc. (NASDAQ: QCOM) DZ Bank downgraded the chip heavyweight to Hold from Buy with a $150 target price. The consensus is posted at $194.73. The shares ended Friday at $145.06.
Roku, Inc. (NASDAQ: ROKU) BofA Securities downgraded the stock to Underperfrom from Buy and slashed the price target to $55 from $125. Susquehanna downgraded the shares to Neutral from Positive and slashed the target price to $70 from $200. That is versus the huge (for now) $147.68 consensus target and Friday’s closing print of $65.52, which was down a massive 23% after the company posted disappointing second-quarter results.
Spirit Airlines, Inc. (NYSE: SAVE) JPMorgan downgraded the stock to Underweight from Overweight and trimmed its target price to $29 from $30 after the company agreed to be acquired by JetBlue. The consensus target is $30.67. The stock closed Friday at $24.77 down over 3%. The JetBlue bid is an all-cash $33.50 offer.
Stanley Black & Decker, Inc. (NYSE: SWK) Vertical Research downgraded the venerable tool and equipment stock to Hold from Buy, and cut its target price on the company to $110 from $130. The consensus target is posted at $136.71. The last trade on Friday was reported at $97.33.
Teleflex Incorporated (NYSE: TFX) Wells Fargo downgraded the stock to Equal Weight from Overweight with a $248 price target. The consensus is set higher at $315.18. The stock closed Friday at $240.46.
Tilray Brands, Inc. (NASDAQ: TLRY) The Benchmark Company downgraded the marijuana stock to Sell from Hold with a $3 target. The consensus is a massive $15.20 for now. The stock closed Friday at $3.65.
Visteon Corporation (NASDAQ: VC) Goldman Sachs raised its price target on the Buy rated shares to $155 from $137. That is versus the $132.38 consensus target and Friday’s closing trade of $127.58 up over 4%.
Wingstop, Inc. (NASDAQ: WING) Stifel downgrades the popular restaurant chain to Hold from Buy and has a $120 target price. The consensus price objective is $124.26. The shares closed up over 5% Friday at $126.18 after earnings missed estimates but sales growth jumped 13% year-over-year.
Here are Friday’s top analyst upgrades and downgrades.
They included Align Technology, Boston Properties, Doximity, Equinix, Public Storage, Shutterstock, T-Mobile, Wayfair and more.
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