Apple CEO Tim Cook attends the premiere of the second season of the television series ‘Ted Lasso’ at the Pacific Design Center in West Hollywood, California, United States, on July 15, 2021.
Mario Anzuoni | Reuters
The past week has been turmoil not only for the stock market, but for the world. Russia’s invasion of Ukraine has shaken individuals and governments, perhaps reintroducing the return of a Cold War-era world order. Meanwhile, markets have been highly volatile as energy prices rise due to sanctions on Russia and inflation uncertainty lingers in the air.
Short-term trading is not always a winning strategy, especially in these times. That’s why we looked at what some of Wall Street’s most accurate analysts had to say about these five stocks. Let’s take a closer look.
Since news of the omicron variant of Covid-19 hit the headlines in late November, Petco’s stock has fallen (FRAME). However, that doesn’t take away from the growing number of new pet owners since the pandemic began. The pet retail and services company is expected to report quarterly results on March 8, and Wells Fargo’s Zachary Fadem is anticipating an uptick.
The analyst believes WOOF will beat Wall Street consensus estimates, and he argued that there is no shortage of long-term monetization opportunities. He said demand within the industry is strong and Petco shares are largely overlooked by investors. (See Petco News sentiment on TipRanks)
Fadem rated WOOF as a buy and assigned a price target of $30.
The company performed well in its veterinary services segment and is generating strong business performance through its loyalty program and fresh food offerings. Additionally, Fadem compared Petco to an online competitor, Chewy (CHWY). He noted that in the first four weeks of the first quarter, “WOOF web traffic sequentially improved while CHWY web traffic weakened.”
Fadem admitted that supply chain challenges, felt by much of the retail industry, will continue to affect Petco. However, many of the financial setbacks resulting from these barriers can be mitigated by the costs passed on to consumers and the premiumization of products.
The analyst sees an “attractive LT entry point given the category’s steady growth, underlying market share gains and estimates likely to rise.”
Out of more than 7,000 analysts on TipRanks, Fadem ranks 77th. He was successful 62% of the time and averaged 41.3%.
A company hailed many times for its growth and consumer penetration, Apple (AAPL) could receive the same positive reception for withdrawing its products and services from Russia. The West has imposed sanctions on Moscow since Russia invaded Ukraine. It now appears that tech companies are following suit, and Apple’s possible losses from the move could be understood and quickly digested by investors.
Wedbush’s Dan Ives detailed the development, which he calculates can have impacts of 1-2% lost revenue, at most for AAPL. The company does not have a physical storefront in Russia and only sells its products through third-party retailers. (See Apple stock charts on TipRanks)
Ives priced the stock long and declared a price target of $200.
The analyst wouldn’t be surprised if other big tech names make similar moves in the region. He said Apple had also removed Russian state-owned and propaganda-based apps from its mobile store and discontinued services such as traffic intelligence on its Maps platform.
In addition to the landmark decision, Ives went on to detail the importance of cybersecurity, given the heightened threat level emanating from Russia. Indeed, an increasing rate of attacks is expected in retaliation against the West.
Ives is ranked No. 222 out of more than 7,000 analysts on TipRanks. The analyst was correct in his stock picks 60% of the time, and he averaged a 29% return on his ratings.
Airbnb (ABNB) released impressive quarterly results last month and cemented its position as the industry leader. The company went public in late 2020 and has executed its business model despite repeated checks on mobility and leisure travel. (See Airbnb’s estimated monthly visits on TipRanks)
Now, with Covid-19 cases dwindling around the world, Airbnb stands to benefit as travel comes back to life. According to Tigress Financial Partners’ Ivan Feinseth, the company can easily scale and add offerings at a lower cost, and it has invested in innovations to streamline the onboarding of new hosts. Additionally, the company has shown its ability to adapt to abruptly changing consumer desires and trends, whether for long-term rural stays or short weekend city breaks.
Feinseth priced the stock long and raised his price target to $214 from $206.
The analyst explained that Airbnb, despite a year of mandatory closings and an increase in stay-at-home tendencies, still managed to generate 78% revenue year over year. While the pandemic may be on the wane, the positive consumer trends it has created for ABNB are among the company’s most popular. For example, Feinseth wrote that half of the total bookings in the fourth quarter were for seven days or more.
The analyst said that “ABNB’s ability to add additional capacity through new hosts, ongoing investment initiatives in new technologies, co-branded buildings, branding opportunities, expanded partnerships with travel service providers and increasing international expansion are all strong drivers for future growth.”
Feinseth is ranked #78 out of over 7,000 professional analysts. His stock ratings have resulted in success 65% of the time, and they have returned an average of 29.4% each.
Cloud software giant Salesforce.com (RCMP) has seen its valuation skyrocket during the pandemic. Stocks have recently fallen along with the rest of the tech, but that doesn’t mean the fundamental business is any less strong.
This is the hypothesis of Brian White of Monness, Crespi, Hardt & Co., who argued that “Salesforce is uniquely positioned to capitalize on the acceleration of digital transformation with a stronger and more relevant platform than ever before. benefiting from a new model, the addition of Slack and an economic recovery.”
White priced the stock long and he maintained his price target of $328.
The analyst said CRM recently proved its reputation with its recent earnings report. The software company released an optimistic forecast and reported revenue up 26% year-over-year. White said he saw strength across industries, localities and product lines.
The company’s various high-profile acquisitions, such as Tableau and MuleSoft, generated combined growth of 23.5%, and Slack continues to impress investors with its performance. The latter is especially important given the huge price that Salesforce has spent on the business.
Despite these tailwinds, White admitted that the current tech sell-off could continue to linger for an unpredictable length of time. Short-term volatility is to be expected.
Out of more than 7,000 analysts on the TipRanks database, White retains the No. 190 position. He was accurate when rating stocks 64% of the time, and he returned an average of 29.1% on each.
Splunk (SPLK) recently released its latest earnings report, reporting a 69% year-over-year increase in cloud revenue and announcing an impressive forecast. The software company also announced a new CEO.
Baird’s Jonathan Ruykhaver says new CEO Gary Steele is expected to improve the execution of the company’s vision over time. The analyst also noted Splunk’s competitive advantage over its peers due to its platform differentiation. (See Splunk’s risk factor analysis on TipRanks)
Ruykhaver priced the stock long and offered a price target of $135.
He wrote that Splunk’s diverse offering “is significant and a competitive advantage, combining an expansive data platform, full-stack observability built-in, and hybrid cloud security and coverage at the edge.” .
In its earnings report, the data analytics software company generated higher-than-expected free cash flow and pointed to metrics that forecast strong bookings.
Out of more than 7,000 expert analysts in the TipRanks database, Ruykhaver ranks 16th. He was accurate when picking stocks 78% of the time, and he returned an average of 56.3% on each.