Investing
10 Stocks Seeing Multiple Analyst Upgrades After Earnings and Key News
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The stock market may have shown that it actually can sell off in a hurry if it wants to or needs to earlier this week. That being said, it snapped back with gains after strong earnings and a strong jobs report on Wednesday. The bull market’s strength is now almost nine years old, and investors have done well buying every single market pullback for more than five years now.
Investors are wondering how they should be positioning their portfolios for 2018 and beyond. There is corporate tax reform, accelerating earnings growth, accelerating global growth, better expensing, higher spending and repatriation of cash, and even pay raises that all have to be considered in 2018.
One area for investors to consider allocating new money into new companies is targeting companies that have strong earnings and also are facing rather positive views by the investing community. Sometimes these stocks do not automatically rise after even a strong earnings report, but this is sometimes viewed as an opportunity to get shares on the cheap after good news. And ask yourself this about news and fundamentals with stronger analyst support: who wants to own problematic companies for which analysts are slashing expectations in the middle of the greatest bull market of this generation?
24/7 Wall St. reviews dozens of analyst research reports each day of the week, hunting for some of those new ideas for investors and traders alike. While some of these analyst reports and research reports cover stocks to buy, what is amazing is that on some days there are many stocks that have faces multiple analyst upgrades or price target hikes ahead of and after earnings.
Additional color and commentary has been added on most of the daily analyst reports. The consensus analyst price targets mentioned and other valuation metrics are from the Thomson Reuters sell-side research service.
These are the 10 stocks tracked by 24/7 Wall St. that received multiple analyst rating upgrades or price target hikes of Wednesday, January 31, 2018.
Aetna Inc. (NYSE: AET) shares were down 3% on Tuesday after the news of the Bezos, Buffett, Dimon health initiative with a $187.89 closing price, but its stock was up 0.7% at $189.20 on Wednesday after seeing numerous analyst price hikes. Aetna’s target price was raised to $212 from $197 at Citigroup, and Credit Suisse raised its price target to $208 from $200. Jefferies ticked its target higher to $205 from $202, and Piper Jaffray was a tad more aggressive by hiking its target to $212 from $207. Raymond James also raised its target to $207 from $200.
Merrill Lynch does not have a formal rating and target, but the firm said that Aetna’s tax reform guidance looked conservative and its guidance implies that Aetna’s core business is stable.
Aetna’s 52-week trading range is $118.04 to $194.40, and its prior consensus target price was $203.53. Its market cap is about $62 billion.
Autoliv Inc. (NYSE: ALV) was last seen up over 1.3% at $151.46 after the automotive safety systems player beat earnings expectations, but this was a second-day gain as it was a $137 stock earlier in the week. Mizuho has a Buy rating and raised its target to $160 from $140, and Robert W. Baird raised its rating to Outperform and lifted its target price to $192 from $137. JPMorgan (Neutral) hiked its target to $147 from $138, and RBC Capital Markets (Sector Perform) raised its target to $142 from $126.
Autoliv’s 52-week range is $96.08 to $151.79. Its prior consensus target price was $132.97, and its market cap is $13 billion.
CA Inc. (NASDAQ: CA) was last seen up 0.7% at $35.80 on Wednesday afternoon, and the stock is challenging a prior 2017 high of $36 now that it posted record revenues. Barclays (Equal Weight) raised its target price to $37 from $34, and Credit Suisse (Neutral) raised its target to $36 from $34. RBC Capital Markets (Sector Perform) raised its target price to $37 from $34.
Oppenheimer maintained its Perform rating, but it said that CA has improving prospects with rising growth and accelerating new product introductions. Jefferies was far more aggressive with its Buy rating, raising its CA price target to $41 from $38 in its call.
CA’s 52-week range is $30.45 to $36.56, and its prior consensus target price was $33.25. The market cap is $15 billion.
Crane Co. (NYSE: CR) was trading up 3.2% at $99.95 on Wednesday afternoon after beating earnings estimates and revising 2018 guidance. This one also challenged the $100 mark for an all-time high, after going up over $102 earlier in the day. Canaccord Genuity raised its target price to $110 from $95.
Oppenheimer (Outperform) raised its price target to $105 from $92, noting that earnings visibility into 2020 should trump any decelerating trends. Stifel was more aggressive as it raised its own rating to Buy from Hold and the price target went to $113 from $99.
Crane’s 52-week range is $70.56 to $102.65, and its prior consensus analyst target was $95.38. Its market cap is $6 billion.
Electronic Arts Inc. (NASDAQ: EA) shares screamed higher on Wednesday after its third-quarter earnings report. The stock was up 7.2% at $127.23, but it hit a new high of $131.00 earlier in the day. So far, it has been able to overcome some of the Star Wars fears.
Electronic Arts was reiterated as Outperform and the price target was raised to $143 from $131 at Credit Suisse, with the firm noting the acceleration in the Live Services segment due to the ongoing strength of Ultimate Team for FIFA as well as the benefit of Madden after the addition of a single player campaign.
A big target hike came from Jefferies, with its Buy rating, up to $150 from $138. Needham also reiterated its Buy rating and raised its target price to $135 from $130. Benchmark reiterated its Buy rating and raised its target price to $141 from $136. A firm called Ascendiant (Buy) raised EA’s price target to $138 from $133, and Barclays lifted its target gradually to $130 from $127. Cowen remains well under the current price, but its target price was raised to $114 from $104 in its call. Wedbush has an Outperform rating and raised its price target to $138 from $136.
EA’s 52-week range is $80.40 to $131.00, and its prior consensus target price was $129.46. The market cap is $39 billion.
HCA Healthcare Inc. (NYSE: HCA) was just marginally higher by eight cents at $101.53 on Wednesday afternoon, after gapping up on Tuesday. HCA is now going to start paying a dividend. Citigroup raised its target on the hospital system owner to $119 from $101, and Cantor Fitzgerald raised its target to $115 from $90. Jefferies lifted its price target to $118 from $88, and Leerink raised its target to $120 from $105. Morgan Stanley maintained its cautious stance, but it still raised its price target to $91 from $84.
Credit Suisse has the top target in today’s noted calls, along with its Outperform rating. The firm raised its target to $122 from $115, noting that the mojo is back at HCA with strong earnings and a strong guidance for 2018. One issue to consider is that HCA was just a $92 stock a week ago.
HCA’s 52-week range is $71.18 to $106.84. The prior consensus target price was $99.38, and the market cap is $36 billion.
Illumina Inc. (NASDAQ: ILMN) was last seen down but its stock was significantly higher on Wednesday after the company beat earnings and revenues. Though down 2.8% at $234.50 on Wednesday afternoon, its shares were actually up at $248.00 right after the opening bell. The stock was up 10% so far in 2018 and up about 51% over the past 12 months. Many analysts have raised target prices, but high earnings multiples and other valuation concerns have kept some analysts from being more positive.
First Analysis raised Illumina to Overweight from Equal Weight with a $277 price target. Canaccord Genuity (Buy) raised its target to $265 from $255, and Citigroup hiked its target to $260 from $220. Leerink raised its target price to $276 from $250. Barclays is under the current target consensus, but it raised its target to $215 from $200. Morgan Stanley has an Underweight rating and raised its target price to $157.
Illumina has a 52-week range of $156.50 to $248.97 and a prior consensus target price of $240.53. Its market cap is $34 billion.
McDonald’s Corp. (NYSE: MCD) was down marginally on Wednesday in spite of the broader market recovery, but its shares sold down by more than $5 after earnings, along with the big market drop, on Tuesday. Analysts came out with more upside targets on Wednesday. Barclays maintained its Overweight rating, but the firm actually lowered its price target to $200 from $205.
Other analysts were more positive on the fast-food king. BMO Capital Markets (Outperform) raised its target to $190 from $175, and Independent Research (Hold) lifted its target to $185 from $175. Mizuho (Buy) raised its target price to $191 from $173.
Merrill Lynch reiterated its Buy rating on McDonald’s, and it still has a $200 price objective, which is among the most aggressive of all analysts. The Merrill Lynch note calls for market share gains to continue in the United States, but it had to trim estimates marginally after going with a 25% tax rate versus a prior 23% assumption. The firm sees McDonald’s appealing to investors as a total return vehicle when considering steady annual dividend increases, having a strong position and being in the early stage of a turnaround.
McDonald’s was last seen down 0.5% at $171.57, and its 52-week range is $121.70 to $178.70. The market cap is $137 billion. The golden arches had a prior consensus target price of $187.68.
Pfizer Inc. (NYSE: PFE) went up to $39 in recent days, but it has pulled back after earnings and with concerns of a Buffett, Bezos, Dimon health initiative, as well as concerns that drug prices will be targeted further in Washington, D.C. Its shares are up 4% so far in 2018, and it is still up 20% in the trailing 12 months. The stock was last seen down 1.8% at $37.12 on Wednesday afternoon.
Merrill Lynch reiterated its Buy rating and raised its price objective on Pfizer to $42 from 440. It noted an expected 17% tax rate going forward and that M&A will remain a priority but will not be overboard. UBS has a Buy rating and raised its target to $42 from $40.
Credit Suisse only has a Neutral rating on Pfizer, but it raised its target to $39 from $37 after tax reform is called “the gift that keeps on giving” in its call. Barclays raised its target to $41 from $38, and BMO Capital Markets raised its target to $43 from $39. Morgan Stanley reiterated its Overweight rating and raised its target price to $43 from $41.
Pfizer shares have traded between $31.26 and $39.43 in the past 52 weeks. Its prior consensus target price was $39.52. The market cap is $221 billion.
Stryker Corp. (NYSE: SYK) was last seen trading down 1.4% at $166.11 on Wednesday, despite what appeared to be a revenue beat. Cowen raised its price target to $175 from $166, while Leerink (Outperform) raised its target price to $184 from $177 and Jefferies (Hold) raised its target to $165 from $150.
Canaccord Genuity has a Buy rating and lifted its target price to $176 from $172, saying that Stryker can continue to deliver on mid-single-digit organic revenue growth as it takes market share across the board and as it starts to benefit from a meaningful halo-effect from MAKO placements.
Stryker’s 52-week range is $121.86 to $170.00. Its prior consensus target price was $166.57.
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