The futures were modestly higher on Thursday after a very weak Wednesday that saw two of the major indexes close deep in the red. The disappointing ADP July jobs number plus worries over the increasing cases of the COVID-19 due to the Delta variant were cited as the main reasons for the risk-off move. After hitting six-month lows, interest rates moved slightly higher across the curve as the sellers came in for Treasury debt as well. The key data point this week will be the July employment report on Friday.

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 Thursday, August 5, 2021.

Asbury Automotive Group Inc. (NYSE: ABG): This stock was named as the Bull of the Day at Zacks, which said that organic growth and strategic acquisitions are making this one of the country’s most profitable auto dealers. Shares most recently closed at $193.21 and have a consensus price target of $227.14.

Avantor Inc. (NASDAQ: ATE): Credit Suisse resumed coverage on the stock with an Outperform rating and a $42 price target. The consensus target is $37.15. Wednesday’s last trade came in at $37.99.

Avis Budget Group Inc. (NYSE: CAR): JPMorgan raised the stock to Overweight from Neutral and has a $100 price target. The consensus price target for the rental car giant is just $90.17. The last trade on Wednesday came in at $74.95, which was down a stunning 17% on the day despite a very solid earnings report. The shares were up about 3% in premarket trading.

Chewy Inc. (NYSE: CHWY): Credit Suisse resumed coverage with an Outperform rating and a $121 price target. The consensus target for the pet food delivery giant is $97.32. The last print on Wednesday was reported at $90.04, which up close to 4% for the day.

Danaher Corp. (NYSE: DHR): Credit Suisse resumed coverage with an Outperform rating and a $306 price target. The consensus price objective is $292.32. The final Wednesday trade came in at $305.62.

Eastman Chemical Co. (NYSE: EMN): BofA Securities raised its Neutral rating to Buy with a $140 price target. The consensus target is $135.65. Wednesday’s final trade was at $109.02 a share.

Eli Lilly and Co. (NYSE: LLY): DZ Bank raised the venerable pharmaceutical giant to Buy from Hold and has a $288 price target. The posted consensus target is $236.88. The shares closed on Wednesday at $262.47.

Etsy Inc. (NASDAQ: ETSY): Morgan Stanley upgraded the shares from Underweight to Equal Weight with a $163 price target. Roth Capital downgraded its Buy rating to Neutral and dropped the price target to $180 from $245. The consensus target is much higher at $226.83. The final trade for Wednesday was posted at $202.10, which is over a 6% gain for the day. The shares were hammered in premarket action, down almost 13%, despite an earnings beat.

Fastly Inc. (NYSE: FSLY): William Blair’s downgrade was to Market Perform from Outperform. Over the past year, the stock has traded in a wide range of $39.47 to $136.50, and it has a $56.22 consensus price target. The shares ended trading on Wednesday at $44.54 and were down a stunning 23% in premarket action after the company reported a second-quarter loss and missed revenue estimates.

Halliburton Co. (NYSE: HAL): HSBC Securities upgraded the oilfield services leader to Hold from Reduce and has an $18.20 price target. The consensus price objective is higher at $24.53. The last trade for Wednesday was reported at $19.20, which was down almost 6% on the day.

KKR & Co. Inc. (NYSE: KKR): JMP Securities raised its Market Perform rating to Market Outperform with an $82 price objective. The consensus target for the private equity and investment giant is lower at $67.36. Wednesday’s closing share price was $66.03.

Rayonier Advanced Material Inc. (NYSE: RYAM): The RBC Capital Markets upgrade to Outperform from Sector Perform included a target price boost to $10 from $9. The consensus price target is $8.83, and the shares tumbled almost 7% on Wednesday to close at $6.69.

Robinhood Markets Inc. (NYSE: HOOD): Zacks selected this as its Bear of the Day stock. The analyst suggested that there is a partial explanation for Wednesday’s surge that has nothing to do with the company itself. Shares last closed at $70.39, in a post-IPO range of $33.25 to $85.00.
Roku Inc. (NASDAQ: ROKU): Stephens upgraded the shares to Overweight from Equal Weight and lifted the target price to $475 from $400. That compares with a $450.50 consensus target and Wednesday’s closing print of $420.32.

Sarepta Therapeutics Inc. (NASDAQ: SRPT): While JPMorgan upgraded the stock to Neutral from Underweight, it also lowered the price target to $87 from $92. The consensus price objective is much higher at $125.82. The shares closed on Wednesday at $67.50.

Virtus Investment Partners Inc. (NASDAQ: VRTS): Morgan Stanley upgraded it to Overweight from Equal Weight and has a huge $400 price target. The consensus target is much lower at $361.33. The last trade for Wednesday hit the tape at $284.96.

Walmart Inc. (NYSE: WMT): Wells Fargo upgraded the ubiquitous retail giant to Overweight from Equal Weight and boosted the target price to $165 from $150. The slightly lower $163.30 consensus target compares with the Wednesday closing price of $142.84 a share.

Western Digital Corp. (NASDAQ: WDC): Summit Insights downgraded the hard disk drive and storage giant to Hold from Buy. The shares have traded in a 52-week range of $33.52 to $78.19 and have a $91.57 consensus price target. The closing price on Wednesday was $64.94 per share.

Wynn Resorts Ltd. (NASDAQ: WYNN): Citigroup raised the luxury casino group to Buy from Neutral and has a $120 price target. The consensus target is up at $131.55. The last trade for Wednesday was reported at $91.09, after a pullback of over 4% for the day.

Zoetis Inc. (NYSE: ZTS): Credit Suisse resumed coverage with an Outperform rating and a $206 price target. The posted consensus target is $192.81. The stock closed at $204.79 on Wednesday.

Investors worried about a sizable sell-off may want to consider moving to five outstanding dividend stocks now. They are rated Buy at major Wall Street firms, and chances are good they will hold up better than crowded technology or meme stocks if the market turns ugly in the next six to eight weeks.

However, see why Goldman Sachs is now the S&P 500’s biggest bull, as well as why the World Gold Council expects higher gold prices ahead.

Wednesday’s early top analyst upgrades and downgrades included Chevron, Clorox, Corsair Gaming, Coursera, Schlumberger and Under Armour. Analyst calls seen later in the day were on Camping World, Nvidia, Victoria’s Secret and more.

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