The futures traded lower after a big risk-off Monday to start the trading week. All the major indexes closed higher, as the financial media cited a string of positives, including slowing inflation, a less aggressive Federal Reserve and an improving supply chain. Yet, fourth-quarter results are coming in much worse than expected, and so far only 67% of companies that have reported have topped estimates, versus the five-year average of 77%. So, selling the strength may make sense now.
Yields were higher across the Treasury curve as the sellers from Friday returned and yield curve steepening returned. The 10-year note closed at 3.53%, which keeps the inversions with the two-year paper in place, as it closed on Monday at 4.23%. Bond market mavens see the ongoing yield difference as a sign that a recession may be on the way, something many Wall Street strategists agree with.
Brent and West Texas Intermediate crude tried to keep their winning ways in place, as both closed flat or modestly higher on Monday. Monday’s final prints came on the heels of last week’s 2% gains for the oil benchmarks. Natural gas finished the day up almost 9% at $3.55, as investors grabbed the beaten-down shares in a big way. Gold closed up, while Bitcoin, which has been on a roll lately, closed up close to 1% and is approaching the $23,000 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.
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These are the top analyst upgrades, downgrades and initiations seen on Tuesday, January 24, 2023.
Advanced Micro Devices Inc. (NASDAQ: AMD | AMD Price Prediction): Barclays upgraded the stock to Overweight from Equal Weight and raised its $70 target price to $85. The consensus target is $91.01. The stock closed over 9% higher on Monday at $76.53 on the upgrade.
Altice USA Inc. (NYSE: ATUS): TD Securities downgraded the stock from Buy to Hold with a $6 target. The consensus target is higher at $8.94, but Monday’s close was at $4.77.
Apple Inc. (NASDAQ: AAPL): Though Deutsche Bank reiterated a Buy rating, the analyst trimmed its $170 target price to $160. The consensus target is up at $171.48. Monday’s close was at $141.11.
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Bumble Inc. (NASDAQ: BMBL): Zacks selected this stock as its Bull of the Day, citing ongoing demand for dating apps. Shares last closed at $24.33, which is up more than 15% year to date.
CrowdStrike Holdings Inc. (NASDAQ: CRWD): Deutsche Bank’s downgrade to Hold from Buy included a price target cut to $115 from $150. The consensus target for the cybersecurity software giant is up at $169.25. Monday’s final trade was for $106.30 a share.
First Energy Corp. (NYSE: FE): Guggenheim upgraded the stock to Buy from Neutral and raised its $34 target price to $46. The consensus target is $43.25. The shares closed on Monday at $41.14.
Levi Strauss & Co. (NYSE: LEVI): J.P. Morgan downgraded the apparel giant to Neutral from Overweight. It also trimmed its $19 target price to $17, below the $19.48 consensus target. The stock closed on Monday at $16.82.
Lucid Group Inc. (NASDAQ: LCID): Citigroup resumed coverage with a Buy rating and a $12 target price. That compares with the $14.43 consensus target, as well as Monday’s final print of $8.82, which was up almost 13% for the day on the strong tape and the coverage.
Netflix Inc. (NASDAQ: NFLX): Argus reiterated a Buy rating and boosted its $340 target price to $390. The consensus target is $342.83. The shares closed over 4% higher on Monday at $357.42.
PPG Industries Inc. (NYSE: PPG): Exane BNP Paribas downgraded the stock from Outperform to Neutral with a $130 target price. The consensus target is $135.27. Monday’s close was at $130.30.
Qualcomm Inc. (NASDAQ: QCOM): When Barclays upgraded the stock to Overweight from Equal Weight, it raised the $120 target price to $150. The consensus target is $146.15. The shares closed almost 7% higher on Monday at $131.03.
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RingCentral Inc. (NYSE: RNG): MKM Partners cut its Buy rating to Neutral with a $40 target price. The consensus target is up at $52.54. Monday’s close of $38.11 was a gain of close to 5% on the day, despite the downgrade.
Seagate Technology Holdings PLC (NASDAQ: STX): Barclays upgraded the stock to Overweight from Equal Weight. It lifted its $50 target price to $70, still short of the $91.01 consensus target. The stock closed on Monday at $63.23, up over 6% on the day, likely on the upgrade.
Shopify Inc. (NYSE: SHOP): Deutsche Bank raised its Hold rating to Buy, and its $40 target price rose to $50. The consensus target is $41.48. Monday’s final trade was for $44.04 a share.
Skechers USA Inc. (NYSE: SKX): Cowen’s upgrade to Outperform from Market Perform came with a target price hike to $65 from $48. The consensus target is $48.63. The stock closed at $48.75 on Monday.
Skyworks Solutions Inc. (NASDAQ: SWKS): Barclays upgraded the stock to Overweight from Equal Weight and lifted its $95 price target to $125. The consensus target is $108.23. Monday’s $109.61 closed was up almost 7% for the day on the upgrade.
Stanley Black & Decker Inc. (NYSE: SWK): Citing earnings estimate cuts, Zacks named this toolmaker as its Bear of the Day stock. Shares have traded as high as $180.93 in the past year but closed most recently at $88.47.
Ternium S.A. (NYSE: TX): BofA Securities upgraded the stock to Buy from Neutral. Its $38 price target is now $42, short of the $44.91 consensus target. Monday’s close at $38.78 was a one-day gain of almost 3%.
Tesla Inc. (NASDAQ: TSLA): Though Truist Financial reiterated a Buy rating, it slashed its $299 target price to $245. The consensus target is $196.22. Positive analyst commentary in front of this week’s earnings report had shares up almost 8% on Monday at the $143.74 close.
Wayfair Inc. (NYSE: W): J.P. Morgan raised the stock to Overweight from Underweight and has a $63 target price, up from $35. The consensus target is $48.07 for now. The shares closed on Monday at $59.33, up a stunning 27% on the huge upgrade.
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Western Digital Corp. (NASDAQ: WDC): Exane BNP Paribas upgraded the stock to Neutral from Underperform. Its $42 target price compares with a consensus target of $44.01. Monday’s $41.79 closed was up close to 9% for the day on the upgrade and positive analyst commentary.
Workday Inc. (NASDAQ: WDAY): Deutsche Bank’s downgrade to Hold from Buy included a target price cut to $195 from $215. The consensus target is $201.68. Monday’s closing share price was $176.43.
Zoom Video Communications Inc. (NASDAQ: ZM): MKM Partners cut its Buy rating to Neutral and lowered its $100 target price to $75. The consensus target is $86.12. Monday’s close was at $70.97.
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See which seven solid dividend-paying stocks could benefit and do well in a period of declining inflation and disinflation, making them great ideas now for investors worried about the potential for a recession this year.
Monday’s top analyst upgrades and downgrades included Advanced Micro Devices, Global Payments, Lululemon Athletica, Mastercard, Mosaic, Netflix, Nordstrom, Pinterest, Travelers and Truist Financial.
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