The futures traded higher Tuesday, with a new month upon us. The Federal Reserve is expected to stay with its hawkish policy stance by raising rates another 75 basis points Wednesday, and investors could be in for more of the same volatility, with big up and down days. All the major indexes closed lower on Monday (the Dow Jones industrials however finished with its best monthly gain since January of 1976) as geopolitical issues marked much of the commentary, with Russia withdrawing from a grain deal and also stepping up the bombing on Ukraine as the war enters its 10th month.
Yields were higher across the Treasury curve, with benchmark 10-year note closing well over the pivotal 4% level at 4.08%. The inversion with the two-year paper stayed in place, closing up seven basis points to 4.49%. The bond market views the wide inversion as a tell-tale sign of impending recession.
Brent and West Texas Intermediate crude both closed the day lower, despite OPEC boosting global oil demand forecasts. Natural gas made a parabolic move higher, closing up almost 12% at $6.36. Gold and Bitcoin closed the day lower, but the cryptocurrency leader stayed above the pivotal $20,000 level.
24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding fresh 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 Tuesday, November 1, 2022.
ADT Inc. (NYSE: ADT): Morgan Stanley resumed coverage with an Equal Weight rating and an $8 target price. The consensus target for the home security giant is $10.25. The stock closed on Monday at $8.46.
Boeing Co. (NYSE: BA): Jefferies reiterated a Buy rating on the shares, which reside on the firm’s Franchise Picks list of top ideas. The $180 target price is less than the consensus target of about $188. The stock closed Monday at $142.51.
Cedar Fair L.P. (NYSE: FUN): Credit Suisse downgraded the theme park giant to Neutral from Outperform and slashed its $74 target price to $42. The consensus target is $58.38. The last trade on Monday came in at $41.20.
Ceridian HCM Holdings Inc. (NYSE: CDAY): Barclays upgraded the stock to Equal Weight from Underweight and raised its $54 target price to $64. The stock has traded as high as $130.37 in the past year but closed on Monday at $66.19.
Cullen/Frost Bankers Inc. (NYSE: CFR): Evercore ISI boosted its Underperform rating to Inline, and its price target rose from $140 to $160. The consensus target is $156.38. Monday’s close was at $155.05.
DaVita Inc. (NYSE: DAV): UBS cut its Buy rating to Neutral and lowered its $117 price target to $74. The consensus target is $99.13. Monday’s $73.07 close was up 3.5% on the day.
Dell Technologies Inc. (NYSE: DELL): Jefferies initiated coverage with a Hold rating and a $39 target price. The consensus target is up at $54.65. Monday’s close was at $38.40.
Doximity Inc. (NYSE: DOCS): Wells Fargo started coverage with an Overweight rating and a $38 target price. The consensus target is $39.07. The shares closed on Monday at $26.47.
DraftKings Inc. (NASDAQ: DKNG): Oppenheimer maintained an Outperform rating and has a $25 price target. The consensus target is $25.33. Monday’s close at $15.80 was up close to 5% on the day, with earnings due later this week.
First Bancshares Inc. (NASDAQ: FBMS): Hovde upgraded the stock to Outperform from Neutral. Its $38 target price compares with a $36.20 consensus target and the most recent close at $32.74.
Heritage Commerce Corp. (NASDAQ: HTBK): The Raymond James downgrade to Outperform from Strong Buy came with a target price boost to $15 from $13. The consensus target is $15.17. The stock closed on Monday at $14.30.
Ladder Capital Corp. (NYSE: LADR): BofA Securities resumed coverage with a Neutral rating and an $11 target price. The consensus target is $13.10. The shares closed on Monday at $10.67.
LyondellBasell Industries N.V. (NYSE: LYB): Barclays downgraded the chemical heavyweight to Equal Weight from Overweight and dropped its $95 price objective to $82. The consensus target is $87.40. Shares closed on Monday at $76.45.
nCino Inc. (NASDAQ: NCNO): Scotiabank initiated coverage with a Sector Outperform rating and a $42 target price. The consensus target is $41. The stock closed on Monday at $31.48.
NetApp Inc. (NASDAQ: NTAP): Jefferies started coverage with a Buy rating and an $88 target price. The consensus target is $87.92. The stock closed on Monday at $69.27.
Newell Brands Inc. (NYSE: NWL): The Barclays downgrade to Underweight from Equal Weight included a target price cut to $11 from $16. The consensus target is $20.05 for now. Monday’s close at $13.81 was down over 8% on the day after the company posted solid numbers but warned of near-term “external disruptions.”
Petróleo Brasileiro S.A. (NYSE: PBR): J.P. Morgan downgraded the South American oil giant to Neutral from Overweight and cut its $20 target price to $14. The consensus target is $16.93. The shares ended Monday at $12.82, down close to 5%. Wall Street pointed to the recent elections in Brazil.
Principal Financial Group Inc. (NASDAQ: PFG): Keefe Bruyette cut its Market Perform rating to Underperform but lifted the $75 target price to $77. The consensus target for the insurance and investment giant is $76.38. Monday’s close was at $88.13.
ServiceNow Inc. (NYSE: NOW): CapitalOne started coverage with an Overweight rating and a $516 target price. The consensus target is $536.63. The stock closed Monday’s session at $420.74.
Sleep Number Corp. (NASDAQ: SNBR): Estimates for the Zacks Bear of the Day have been slashed for both the current year and next year, points out the analyst. Shares have traded as high as $93.73 in the past year but closed most recently at $27.74. That is down about 18% in the past month.
Sonoco Products Co. (NYSE: SON): BMO Capital Markets downgraded the stock to Underperform from Market Perform and lowered its $65 target price to $58. The consensus target is $67.50. The stock closed over 4% lower on Monday at $62.08. Things changed in the aftermarket, when the company posted solid results for the quarter and shares gained over 5%.
Texas Roadhouse Inc. (NASDAQ: TXRH): Deutsche Bank’s downgrade was to Hold from Buy, but the firm did bump its $100 target price to $101. The consensus target is $103.32. Monday’s close at $98.95.
Textron Inc. (NYSE: TXT): Jefferies maintained a Buy rating with an $85 target price, which is higher than the consensus target. The shares ended Monday trading at $68.44.
Uber Technologies Inc. (NYSE: UBER): Oppenheimer reiterated an Outperform rating and has a $42 target price. The consensus target is up at $46.02. The stock closed on Monday at $26.57.
Veeva Systems Inc. (NYSE: VEEV): Wells Fargo started coverage with an Equal Weight rating and a $180 target price. The consensus target is $217.04. The shares closed on Monday at $167.94.
Vitru Ltd. (NASDAQ: VTRU): Morgan Stanley’s downgrade was from Overweight to Equal Weight with a $23.50 target price. The consensus target is $21.59. The stock closed on Monday at $22.87, up close to 3% on the day despite the downgrade.
Wingstop Inc. (NASDAQ: WING): Zacks selected this restaurant chain operator as its Bull of the Day stock. The analyst makes the case that wing prices down and sales way up is a recipe for profits. Shares last closed at $158.39, which is up more than 26% in the past month.
Five Dividend Kings beat third-quarter earnings expectations and look like solid picks for growth and income investors seeking a dependable stream of income as the market wobbles and seems poised to head much lower.
Monday’s early top analyst upgrades and downgrades included Altria, Amazon.com, Apple, Axalta Coating Systems, Comcast, Etsy, Intel, McDonald’s and Medical Properties Trust. Analyst calls seen later in the day were on Advanced Micro Devices, Amgen, BioMarin Pharmaceutical, Caterpillar, Gilead Sciences, Hanesbrands, Honeywell International, Keurig Dr Pepper, Newell Brands, Paramount Global, TuSimple and more.
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