The futures were higher on Thursday. Once again, we saw some “buying the dip” action on Wednesday as two of the major indexes bounced back from Tuesday’s big tech train wreck. The Dow Jones industrials printed yet another all-time intraday high, while the S&P 500 managed a small gain. Both the Nasdaq and the Russell 2000 closed down but finished off the lows of the day.
The biggest data point this week will hit tomorrow before the market opens, with the release of the April payroll numbers. Estimates across Wall Street range from the 965,000 consensus to some as high as 2.1 million. While many across Wall Street remain very positive, some think we could be looking at a “sell in May and go away” scenario.
Despite clear inflationary pressures, the Federal Reserve is vowing to keep interest rates contained, which could be one reason for the continued moves higher in the equity markets, even after sell-offs. It also should be noted that money markets continue to see massive inflows, which is another big plus.
With major Wall Street firms still warning of the potential for impending 5% to 10% correction across the board, it makes sense for investors to continue building some cash reserves into the market strength while repositioning portfolios for the balance of the second quarter and the rest of 2021.
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24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new 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 Thursday May 6, 2021.
Accolade Inc. (NASDAQ: ACCD): SVB Leerink raised the stock to Outperform from Market Perform. The shares have traded in a wide 52-week range of $.0.55 to $65.25 and have a consensus price target of $58.73. The last trade for Wednesday came in at $45.05.
Alcon Inc. (NYSE: ALC | ALC Price Prediction): Citigroup raised its Sell rating to Neutral and also hiked the price target to $72. The consensus target is $77. Wednesday’s closing share price was $70.04.
Apple Inc. (NASDAQ: AAPL): Zacks named this as the Bull of the Day. The firm said that this is one of the most profitable companies in history and things just keep getting better. Shares most recently closed at $128.10 and have a consensus price target of $158.47.
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Arco Platform Ltd. (NASDAQ: ARCE): Morgan Stanley raised the stock to Overweight from Equal Weight and has a $32.50 price target. The consensus target is up at $44.81, and the shares closed on Wednesday at $25.02.
Astec Industries (NASDAQ: ASTE): Stifel’s upgrade to Buy from Hold included a price target hike to $81 from $75. The posted consensus target is $82.33. The stock closed Wednesday at $65.95, down almost 15% for the day, after earnings came in way below expectations.
Cumulus Media Inc. (NASDAQ: CMLS): B. Riley Securities raised the stock to Buy from Neutral and has a $14 price target. The consensus target is $11.33. The stock closed trading on Wednesday at $9.00.
Darden Restaurants Inc. (NYSE: DRI): Cowen raised its Market Perform rating to Outperform and its price target went from $137 to $164. The consensus target is $155.76, and the last Wednesday trade came in at $142.23.
FMC Corp. (NYSE: FMC): Citigroup downgraded it to Neutral from Buy and has a $126 price target. The consensus target is higher at $132.21m and the closing price on Wednesday was $121.83 a share.
Maxeon Solar Technologies Ltd. (NASDAQ: MAXN): Though Raymond James upgraded the shares to Strong Buy from Outperform, the firm also lowered the price target to $33. The consensus target is $27.67, and the Wednesday close was at $15.43, which was down almost 8% for the day.
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MercadoLibre Inc. (NASDAQ: MELI): Stifel raised the shares to Buy from Hold and has a $1,800 price target. The consensus target is even higher at $1,912.57, and Wednesday’s closing price was $1,530.54.
Mercury Systems Inc. (NASDAQ: MRCY): Jefferies upgraded the stock to Buy from Hold and has an $80 price target. The consensus target is up at $91.75m and the last trade on Wednesday came in at $57.69, and the stock pulled back almost 18% on the day. The company slightly beat estimates but announced very weak forward guidance.
Neurocrine Biosciences Inc. (NASDAQ: NBIX): Barclays upgraded the shares to Overweight from Equal Weight and has a $110 price target. The consensus target is $127.55, and the stock ended Wednesday’s trading session at $91.60 a share.
Paya Holdings Inc. (NASDAQ: PAYA): Credit Suisse started coverage with an Outperform rating and a $14 price target. The consensus target is higher $15.43, and the final Wednesday price was reported at $10.57.
Peloton Interactive Inc. (NASDAQ: PTON): BofA Securities downgraded it to Hold from Buy and lowered the price target to $100 from $150. The consensus target is $158.67, and the shares ended Wednesday trading at $82.62, down almost 15% for the day. The company initiated a complete recall of its exercise machines after a death and multiple injuries were reported.
Pfizer Inc. (NYSE: PFE): Mizuho downgraded the pharmaceutical giant to Neutral from Buy, and it has a $42 price target. The consensus target is $41.67, and Wednesday’s close was at $39.97.
Pioneer Natural Resources Inc. (NYSE: PXD): Truist Securities downgraded the stock to Hold from Buy and has a $190 price target. The consensus target for the Permian Basin energy giant is higher at $192.47. Shares closed most recently at $164.34 apiece.
Tattooed Chef Inc. (NASDAQ: TTCF): Zacks selected this as its Bear of the Day stock and said that a good product doesn’t always make for a good stock to invest in. It also said that this SPAC may have come too far, too fast. Shares last closed at $17.73, and the consensus price target is $23.50.
Tilray Inc. (NASDAQ: TLRY): Canaccord Genuity started coverage on the marijuana giant with a Buy rating and a $17 price target. The consensus price objective is $19.62, and Wednesday’s last trade was at $15.90.
WideOpenWest Inc. (NYSE: WOW): The Stephens upgrade to Overweight from Equal Weight was accompanied by a price target hike from $7 all the way to $22. The consensus target is lower at $15.81. The last trade for Wednesday hit the tape at $15.42, up over 4% on the day. Shares tacked on an additional 4% in Thursday’s premarket. The company posted outstanding results earlier this week.
Zynga Inc. (NASDAQ: ZNGA): BofA Securities raised the video game maker’s stock to Buy from Neutral and increased the price target to $13.50 from $12.50. The consensus price objective is $13.12, and the stock closed at $10.14 on Wednesday.
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Four quality Jefferies stock picks have value characteristics but also appear to have the hidden potential for momentum stock upside. Two of them are technology names that were hit hard this week and look especially attractive.
Wednesday’s early top analyst upgrades and downgrades included Clorox, ConocoPhillips, Exxon Mobil, Ferrari, Kraft Heinz, Nvidia and Under Armour. Analyst calls seen later in the day were on Dell, iRobot, KKR, Lyft and more.
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