The futures were lower to start the new trading week, with all eyes on Jackson Hole and the annual Federal Reserve economic symposium, after a brutal Friday that spelled the end of the market’s four-week winning streak. All the major indexes closed lower on the day, with the Nasdaq getting pummeled the most, down 2%. Hideous inflation numbers out of Europe, a strengthening dollar, combined with Federal Reserve Governor Bullard stating that he was for a 75 basis-point rate hike next month, seemed to be the main impetus behind the selling. Toss in the 6% decline in the housing market reported for July and the table was set for a decline.
Brent and West Texas Intermediate crude both closed modestly lower, but well off the lows posted early on Friday. Analysts cited recession fears as keeping a lid on prices for the time being. Natural gas bounced back some on Friday, closing up over 1% at $9.29.
Sellers returned to the Treasury market, as yields jumped across the curve. The benchmark 10-year note closed right at the 3% level, and despite the curve steepening, the dreaded inversion remains in place (although it has narrowed), with the two-year note closing at 3.24%. Bond traders see the inversion as a recession indicator.
Gold closed lower to finish out a very lousy week, but the bigger story on Friday was the pounding that Bitcoin took, down over 8% to close at $21,255.
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24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding fresh 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 Monday, August 22, 2022.
America’s Car-Mart Inc. (NASDAQ: CRMT): Stephens downgraded the stock to Equal Weight from Overweight and slashed the $113 price target to $83. The consensus target is $117.50 for now. The stock was bludgeoned Friday, closing down 14% at $79.48, after posting results that missed estimates.
Applied Materials Inc. (NASDAQ: AMAT | AMAT Price Prediction): Goldman Sachs raised its $95 price target on the semiconductor capital equipment giant to $109 while reiterating a Buy rating. Citigroup also kept a Buy rating but lowered its $160 target to $150. The consensus target is $137.31. The stock closed on Friday at $104.63.
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Arch Capital Group Ltd. (NASDAQ: ACGL): Citing its rock-solid performance and inspiring growth prospects, Zacks selected this insurer as its Bull of the Day stock. Shares last closed at $47.28, which is up more than 12% from a year ago.
Autodesk Inc. (NASDAQ: ADSK): Stifel maintained a Buy rating and raised the $230 price target to $271. The consensus target is $252.57. Friday’s close was at $222.59.
Bill.com Holdings Inc. (NYSE: BILL): Oppenheimer raised the price target on the stock in a big way, from $150 to $200, while reiterating an Outperform rating. The consensus target price is $186.42. The stock closed Friday at $174.29, which was up close to 17% after posting numbers that easily beat expectations.
BJ’s Wholesale Club Holdings Inc (NYSE: BJ): Credit Suisse reiterated an Outperform rating and raised the $70 price objective to $80. That compares with a $77.25 consensus and Friday’s close at $73.78.
Bluebird Bio Inc. (NASDAQ: BLUE): Goldman Sachs stuck with a Sell rating but raised the price target to $3 from $2. The consensus is set at $7.70. The stock closed almost 3% higher on Friday at $5.97.
CSG Systems International Inc. (NASDAQ: CSGS): Benchmark started coverage with a Buy rating and a $73 price target. The consensus target is $72. The stock closed on Friday at $59.59.
DaVita Inc. (NYSE: DVA): UBS resumed coverage with a Buy rating and lifted its price target to $117 from $106. The consensus target is $98. The last trade on Friday was reported at $93.21, up 4% on the day.
Domino’s Pizza Inc. (NYSE: DPZ): Stifel maintained a Hold rating on shares of the popular pizza chain and has a $400 target price. The consensus target is up at $430.30. The stock closed on Friday at $405.20.
Eagle Materials Inc. (NYSE: EXP): Raymond James resumed coverage with an Outperform rating and a $145 target price. The consensus target is $155.69. The last trade for Friday was reported at $131.20.
eBay Inc. (NASDAQ: EBAY): Baird reiterated an Outperform rating and a $60 target price The consensus target is $54.63. The stock closed down 3% on Friday to $47.07.
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Foot Locker Inc. (NYSE: FL): J.P. Morgan’s upgrade was from Underweight to Neutral with a $40 target price. The consensus target is $30.32. The shares closed up 20% at $38.39 on Friday after it was announced that Ulta Beauty CEO Mary Dillon is taking over as the new chief executive.
Kohl’s Corp. (NYSE: KSS): Baird lowered its $42 target price to $40 while maintaining an Outperform rating. The consensus target is $31.33. The stock closed down almost 5% on Friday at $29.89. The company posted disappointing quarterly results last week and slashed its full-year outlook.
Martin Marietta Materials Inc. (NYSE: MLM): Raymond James resumed coverage with an Outperform rating and a $410 price target. The consensus target is $410.66, and shares ended Friday trading at $365.15.
Nasdaq Inc. (NASDAQ: NDAQ): Though Atlantic Equities cut its Overweight rating to Neutral, it hiked the $190 price target up to $200. The consensus target is $197.92. The closing share price on Friday was $187.11.
Provident Financial Services Inc. (NYSE: PFS): Piper Sandler downgraded the stock to Neutral from Overweight and has a $26 target price. The consensus target is $26.80, and shares closed on Friday at $24.92, down close to 3% for the day.
Salesforce Inc. (NYSE: CRM): Oppenheimer reiterated an Outperform rating and raised the $205 target price to $240. The consensus target is $242.60. The shares were last seen on Friday trading at $183.77.
Snowflake Inc. (NYSE: SNOW): Capital One started coverage with an Equal Weight rating and a $182 target price. The consensus target is $201.53. The stock closed almost 5% lower on Friday at $153.93.
Southern Co. (NYSE: SO): Goldman Sachs raised the $53 price target on the Sell-rated utility giant to $61. The consensus target is $75.29, but shares closed at $80.16 on Friday.
Teradyne Inc. (NYSE: TER): Zacks named this test equipment maker as its Bear of the Day. The analyst points out that the stock did not participate in the recent market rally. Shares have traded as high as $168.91 in the past year but closed most recently at $96.85. That is down almost 41% year to date.
UDR Inc. (NYSE: UDR): BMO Capital Markets downgraded the stock from Outperform to Market Perform with a $54 target. The consensus target is $53.90. Shares ended trading on Friday at $48.83.
ZTO Express Inc. (NYSE: ZTO): J.P. Morgan lifted its Neutral rating to Overweight and raised the $27 target price to $35. The consensus target is $36.09. The last trade Friday was for $26.56 a share.
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Six top big dividend stocks are solid ideas during these volatile times. They include hard-asset plays, real estate investment trusts, shipping stocks and business development companies with double-digit yields and enticing entry points.
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Friday’s early top analyst upgrades and downgrades included Analog Devices, Bath & Body Works, Cisco Systems, Elanco Animal Health, Exxon Mobil, Marvell Technology, MGIC Investment, Nvidia, Snowflake, Target, TJX Companies and Zoom Video Communications. Analyst calls seen later in the day were on Applied Materials, Dick’s Sporting Goods, Foot Locker, HP, Meta Platforms, Occidental Petroleum and more.
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