The futures were down across the board Wednesday, following a very positive day on Wall Street where all three major indexes and the transports ended higher. Much of the financial chatter was focused on the rising COVID-19 cases, with some areas, like Louisiana, that have seen a big spike in new cases reinstating mask mandates. The gaming industry was hit hard over worries that it may be the next target of the Chinese government. The key data point this week will be the July jobs report, which some think could be the blockbuster report Wall Street has been looking for with over 1 million new jobs being added.

While the Federal Reserve did not raise rates last week, many across Wall Street remain leery of the beginning of the tapering of the quantitative easing program after the clear buildup of inflationary pressures, despite the fact the Federal Reserve is vowing to keep interest rates contained. That could be one reason for the continued moves higher in the equity markets even after sell-offs. Also note 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 rest of 2021.

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 Wednesday, August 4, 2021.

BJ’s Restaurants Inc. (NASDAQ: BJRI): Deutsche Bank raised the stock to Buy from Hold and has a $49 price target. The posted consensus target is much higher at $63.38. The stock closed Tuesday at $38.75, which was down almost 6% for the day despite beating earnings estimates. The shares rebounded almost 3% in the premarket.

Bright Health Group Inc. (NYSE: BHG): Though Citigroup upgraded it to Buy from Neutral, the firm also lowered the price target to $12. No consensus target was available as the stock had a recent initial public offering. The shares have traded between $7.98 and $17.93 so far. The final trade on Tuesday came in at $8.49, which was down a stunning 22% after the company posted earnings. Shares were fighting back in the premarket, up about 5%.

Chatham Lodging Trust (NYSE: CLDT): B. Riley Securities raised the stock from Hold to Buy with a $15 price target. The consensus target is $16.20. The stock fell almost 3% on Tuesday to close at $11.46.

Chevron Corp. (NYSE: CVX): DZ Bank downgraded the energy behemoth to Hold from Buy and has a $110 price target. That compares with the higher $122.79 consensus price objective and Tuesday’s closing trade of $102.60 a share.

Clorox Co. (NYSE: CLX): Atlantic Equities downgraded the consumer staples giant to Neutral from Overweight and has a $150 price target. The consensus target is up at $189.87, and the shares ended Tuesday’s trading session at $164.06, after falling almost 10% in the wake of disappointing earnings.

Corsair Gaming Inc. (NASDAQ: CRSR): Credit Suisse downgraded the stock to Neutral from Outperform and lowered the price target to $31. The consensus target is much higher at $46.67. The stock closed Tuesday down almost 7% to $27.13, after the gaming products company posted disappointing results and guidance.

Coursera Inc. (NYSE: COUR): Raymond James raised the stock to Outperform from Neutral and has set a $45 target price. The consensus price objective is much higher at $54.54. The last trade on Tuesday came in at $35.68.

Global Blood Therapeutics Inc. (NASDAQ: GBT): Truist Securities upgraded it to Buy from Hold and has a $50 price target. The consensus target is up at $78.47. The shares closed Tuesday at $26.89, which was down over 3% for the day. The stock roared back in the premarket with more than a 13% gain after the company reported a second-quarter loss but revenues that topped Wall Street estimates.

GXO Logistics Inc. (NYSE: GXO): Deutsche Bank started coverage with a Buy rating and an $81 price target. A consensus price objective was not available. The company was a recent spinoff from XPO Logistics. The final trade for Tuesday was reported at $66.38, which was up over 5% on the day.

Healthcare Trust of America Inc. (NYSE: HTA): BMO Capital Markets downgraded the stock to Market Perform from Outperform and has a $34 price target. The consensus target is $30.71. The last trade for Tuesday came in at $28.30 a share.

Lithia Motors Inc. (NYSE: LAD): Zacks named this auto dealer stock as the Bull of the Day. The analyst said that this is a rare cheap growth stock. Shares most recently closed at $365.06 and have a consensus price target of $455.55.
Mercury Inc. (NASDAQ: MRCY): Baird downgraded the shares from Outperform to Neutral with a $56 price target. The consensus target is up at $82.14. The shares were last seen on Tuesday at $63.57. The stock was down almost 7% in premarket trading despite earnings and revenue exceeding estimates.

Microvast Holdings Inc. (NASDAQ: MVST): Morgan Stanly started coverage with an Underweight rating and a $6 price target. No consensus target was available. The shares closed Tuesday at $8.45 apiece.

Nautilus Biotechnology Inc. (NASDAQ: NAUT): Goldman Sachs started coverage with a Neutral rating and a $10 price target. No consensus target was available. The final Tuesday trade was reported at $7.65.

Omega Health Investors Inc. (NYSE: OHI): Capital One’s downgrade to Equal Weight from Overweight came with a $38 price target. The consensus target is $40.14. The shares were last seen Tuesday at $34.60, which was down almost 4% despite posting reasonable results.

Schlumberger Ltd. (NYSE: SLB): HSBC Securities raised the oilfield services giant to Hold from Reduce, and the firm has a $25 price target. The higher consensus target is $33.40, and Tuesday’s closing print was $28.90 a share.

Shenandoah Telecommunications Co. (NASDAQ: SHEN): Raymond James raised its Underperform rating to Market Perform. The shares have traded in a 52-week range of $29.43 to $61.53 and have a $43.33 consensus price target. The stock retreated over 7% on Tuesday after the company missed earnings estimates, closing at $29.58.

SolarWinds Corp. (NYSE: SWI): Berenberg downgraded the stock to Hold from Buy and has a $24 price target. The consensus target is $19.38, and the last trade to hit the tape on Tuesday came in at $22.64.

Under Armour Inc. (NYSE: UAA): JPMorgan raised its Neutral rating on the sports apparel giant to Overweight, and the analyst has a $30 price target. The posted consensus target is $25.54. The stock closed trading on Tuesday at $22.70, after an almost 8% pop in the wake of solid second-quarter results.

Four big pharmaceutical stocks are rated Buy by top Wall Street firms and look like very good ideas for investors, especially now that the market is overbought and the slow seasonal market months are right around the corner. They are classic defensive names that will hold up much better than crowded momentum stocks when the inevitable correction comes.

Tuesday’s early top analyst upgrades and downgrades included Airbnb, Krispy Kreme, Old Dominion Freight Line, Planet Fitness, Square, Workday and XPO Logistics. Analyst calls seen later in the day were on Exxon Mobil, First Solar, Tesla and more.

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