Jim Umpleby, CEO of Caterpillar Inc.
Adam Jeffery | cnbc
During these challenging times, it is important for investors to make informed decisions with a long-term view.
Here are five stocks picked by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their track records.
Advanced Micro Devices
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semiconductor company Advanced Micro Devices’ ,amd) Fourth-quarter results beat market expectations, even as continued weakness in the PC market dragged down the company’s client segment revenue. Still, higher sales from the data center and embedded divisions helped offset weakness in the client and gaming segments.
Although AMD expects its revenue to decline by about 10% in the first quarter of 2023, CEO Lisa Su is optimistic about the company’s ability to win market share this year.
Susquehanna analyst Christopher Roland said the company’s customer and gaming results were better than feared. However, he added that management’s weak data center outlook for the first half was “surprising.”
“While sales are set to more than double in North American hyperscalers in 2022, management believes that cloud is now going through a period of digestion in 1H, returning to growth in 2H (we think Genoa, helped by the ramps of Bergamo, MI300 and Pensando, all of which are on track),” Roland said of the data center segment guidance. (see AMD blogger opinion and sentiment on TipRanks)
Overall, Roland reiterated a buy rating for AMD with a price target of $88, adding that he prefers to look beyond the uncertainty in 2023 “toward a better 2024.” Roland’s conviction is believable, considering he is ranked 13thth Position among more than 8,300 analysts tracked by TipRanks. Furthermore, 72% of their ratings have been profitable, with each giving an average return of 21%.
Leading Electric Vehicle Manufacturer Tesla’s ,TSLA) Upbeat fourth-quarter results erased investor concerns about supply chain disruptions, distraction related to Elon Musk’s Twitter acquisition and recently announced price cuts.
Tesla is focused on reducing costs and increasing productivity to deal with near-term macroeconomic pressures and increasing competition. Noting potential supply chain issues and other potential bottlenecks, the company issued production guidance of 1.8 million EVs in 2023, even though it has the capacity to make 2 million units.
Mizuho Securities analyst Vijay Rakesh projects that Tesla’s revenue will grow 29% this year and 26% in 2024.
Rakesh affirmed a buy rating and $250 price target, pointing out that Tesla has industry-leading margins and is on track to deliver more than $10 billion in free cash flow, compared to rivals that still Are in negative free cash flow. (See Tesla hedge fund trading activity on TipRanks).
Rakesh has 113th Position among over 8,000 analysts tracked on TipRanks. Additionally, they have a success rating of 60% and have generated an average return of 17.4%.
After fast-paced EVs, fast-food giants McDonald’s ,Delhi Municipal Corporation) is next on our list. McDonald’s hopes are topped after the restaurant chain saw better-than-expected traffic at its domestic stores in the final quarter of 2022.
Marketing campaigns such as “strategic menu price increases”, attractive menu offerings, and the introduction of Happy Meals for adults in the US led McDonald’s to strong comparable sales in both domestic and international markets. (View McDonald’s Dividend Date & History on TipRanks.)
Despite tough macro conditions, McDonald’s is looking to expand further to capture additional business. It plans to open approximately 1,900 restaurants, of which more than 400 locations are in the US and international driven market segments. The remaining restaurants will be opened by developmental licensees and affiliates.
BTIG analyst Peter Saleh, who reiterated a buy rating and $280 price target, expects McDonald’s to benefit from “decreasing inflation, carryover pricing, the easing of the lockdown in China, and foreign exchange eventually becoming a minor tailwind.” .
Saleh ranks 383 out of over 8,300 analysts on TipRanks, with a success rate of 65%. Each of his ratings has given an average return of 12.3%.
Mondelez International ,MDLZ) Recent results show the benefits of being a manufacturer of flexible product categories such as chocolate, cookies and baked snacks. The Oreo-brand owner delivered strong revenue growth from higher pricing, increased volume and strategic acquisitions, including Chipita and Clif Bar.
Despite currency headwinds and higher costs, Mondelez is positive about driving “attractive growth” in 2023 and beyond by increasing its exposure to high-growth categories, cost discipline, and continued investment in iconic brands. (View MDLZ stock chart on TipRanks)
JPMorgan analyst Kenneth Goldman, who ranks 652 out of more than 8,300 analysts tracked by TipRanks, believes the staples industry will see “at least .. It’s refreshing to see at least one company on the upswing”.
Noting that many food producers are likely to report weak volumes in the coming days, Goldman said it is looking for “(a) relatively unmarketable categories, (b) stocks of companies with strong and unique brands with limited private label competition.” may be increasingly important, and (c) a commitment to consistent spending behind its brands.”
In line with its bullish stance, Goldman reiterated a buy rating and raised its price target from $71 to $74. It is worth noting that 61% of their ratings have been successful, yielding an average return of 9.3%.
construction and mining equipment manufacturer Kamla ,Cat) ended 2022 with double-digit revenue growth in the fourth quarter, driven by steady demand and higher pricing. However, investors were concerned about rising costs and the impact of a stronger US dollar on the company’s profitability.
In addition, Caterpillar’s warning about weaker China demand in 2023 didn’t go down well with shareholders. Still, the company is optimistic about higher overall sales and earnings this year due to healthy demand in its segment.
Jefferies analyst Stephen Volkman reaffirmed a buy rating following the Q4 print and maintained a $285 price target. Volkmann called the company’s pricing strength a “standout positive.”
The analyst also noted that demand for Caterpillar’s products remains strong, as indicated by a $400 million increase in order backlog in the fourth quarter on a sequential basis. (See Caterpillar’s insider trading activity on TipRanks.)
Volkmann’s recommendations are noteworthy, considering he’s ranked No.scheduled tribe Position among more than 8,300 analysts tracked by TipRanks. Remarkably, 69% of Volkman’s ratings have turned profits, with an average return of 19.9% per rating.