The futures were lower on Friday, after another risk-off day for the stock market in which all the major indexes ended in the red. One thing is for sure, and that is investors will be more than ready for the Federal Reserve to go ahead and raise interest rates next Wednesday. The futures market is pricing in a 100% chance of a 75-basis-point increase, and now a big 34% chance for a 100-basis-point increase. Another item that top strategists have on their screens is the massive expiration Friday of $3.2 trillion in index options, which could be just the fuel for a very volatile end to the week.

Interest rates were higher across the Treasury complex as sellers returned and the curve continued to flatten. The two-year note closed at a 3.87% yield, while the 10-year closed at 3.46%. The spread between the two securities of −41 basis points is the most inversion since September of 2000. As we have noted before, bond market pros see the inversions as a recession signal.

Both Brent and West Texas Intermediate crude gave consumers something to cheer about on Thursday, as both were hammered, with each down well over 3%. Analysts cited the ending of the potential for a railroad strike as a catalyst for the decline. After a big rally earlier in the week, natural gas closed down almost 8%, falling back below the $9 level. Both gold and Bitcoin closed down, with the crypto giant back under the $20,000 level.

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 Friday, September 16, 2022.

Activision Blizzard Inc. (NASDAQ: ATVI): Atlantic Equities upgraded the stock to Overweight from Neutral while lowering the $95 target price to $84. The consensus target is $93.96. The shares closed on Thursday at $76.83.

Albemarle Corp. (NYSE: ALB): Zacks selected this chemicals manufacturer as its Bull of the Day stock. The analyst makes the case that the great energy play of the next decade will not be oil. Shares last closed at $286.75, which is more than 57% higher than six months ago.

Bumble Inc. (NASDAQ: BMBL): Stifel resumed coverage with a Buy rating and a $35 target price. The consensus target is $34.59. The stock closed on Thursday at $25.21.

Deckers Outdoor Corp. (NYSE: DECK): Wedbush’s upgrade to Outperform from Neutral included a price target price hike to $410 from $320. The consensus target is $382.46, and Thursday’s closing print was $339.40.
Delek US Holdings Inc. (NYSE: DK): Wolfe Research’s upgrade was from Peer Perform to Outperform with a $49 target. The consensus target is $34.08. Thursday’s $26.70 close was down over 4% for the day, likely on the energy sector weakness.

Devon Energy Corp. (NYSE: DVN): J.P. Morgan downgraded the energy leader to Neutral from Overweight and has an $83 target price. The consensus target is $79.32. The closing share price on Thursday was $69.48, down close to 4% on a weak energy sector day.

Duckhorn Portfolio Inc. (NYSE: NAPA): J.P. Morgan downgraded shares the popular vineyard and winemaker to Neutral from Overweight while cutting the $24 target price to $19. The consensus target is $23.33 for now. The shares were hammered Thursday, closing down almost 11% at $15.07, after a competitor posted dreadful results.

Electronic Arts Inc. (NASDAQ: EA): Atlantic Equities cut its Overweight rating to Neutral and sliced its $140 target price to $130. The consensus target is $150.91, and Thursday’s last trade was for $124.41 a share.

Envivia Inc. (NYSE: EVA): Raymond James upgraded the stock from Market Perform to Outperform with an $80 target price. The consensus target is $77.67. The stock closed on Thursday at $70.34.

EOG Resources Inc. (NYSE: EOG): J.P. Morgan’s upgrade to Overweight from Neutral included a target price increase to $156 from $152. The consensus target for the energy giant is $147.43. The stock closed Thursday at $122.56, which was down over 3% on the day.

Flowserve Corp. (NYSE: FLS): As Credit Suisse downgraded the stock to Neutral from Outperform from Neutral, it also cut the $38 price target to $31. The consensus target is $36.33. The shares closed on Thursday at $27.51.

Fortinet Inc. (NASDAQ: FTNT): Jefferies began coverage with a Buy rating and a $65 target price. The consensus target is higher at $71.27. Thursday’s close was at $50.82.

Hilton Worldwide Holdings Inc. (NYSE: HLT): Berenberg upgraded the stock to Buy from Hold. It also lifted the $140 target price to $152, while the consensus target is $145.00. The shares closed on Thursday at $135.24.

Kohl’s Inc. (NYSE: KSS): Jefferies downgraded shares of the popular big-box discount retailer to Hold from Buy, while cutting the $40 target price to $29. The consensus target is $31.08. The stock closed on Thursday at $28.68.

Lucid Group Inc. (NASDAQ: LCID): Citigroup resumed coverage on the electric vehicle company with a Buy rating and a $28 target. The consensus target is $24.78. The stock closed at $16.49 on Thursday.

Marriott International Inc. (NASDAQ: MAR): Berenberg raised its Hold rating to Buy and increased the $165 price target to $185. The consensus target is $172. Shares ended Thursday trading at $162.51.

Match Group Inc. (NASDAQ: MTCH): Stifel started coverage with a Hold rating and a $62 target price. The consensus target is up at $83.40. The final trade for Thursday was reported at $57.86.
Netflix Inc. (NASDAQ: NFLX): Evercore ISI upgraded the streaming entertainment giant to Outperform from In Line. The firm also boosted its $245 target price to $300. The consensus target is $244.73. The stock closed up 5% on the upgrade to $235.38.

Noodles & Co. (NASDAQ: NDLS): Zacks asks whether fast-casual has had its day and named this restaurant stock as its Bear of the Day. Shares have traded as high as $13.44 in the past year but closed most recently at $4.91, which is down about 22% in the past six months.

Nordstrom Inc. (NYSE: JWN): Jefferies raised its Hold rating on the luxury retailer to Buy, and the target price rose to $24 from $21. The consensus target is $21.44. The stock closed on Thursday at $18.37.

Palo Alto Networks Inc. (NASDAQ: PANW): Jefferies resumed coverage on the cybersecurity giant with a Buy rating and a $220 price objective. The consensus target is $216.35. Thursday’s last trade was posted at $179.62.

Permian Resources Corp. (NYSE: PR): J.P. Morgan upgraded the stock to Overweight from Neutral and has a $12 target price. The consensus target is $10.20. Thursday’s close was at $7.99.

Quanta Services Inc. (NYSE: PWR): Goldman Sachs downgraded the stock to Neutral from Buy and has a $150 target price. The consensus target is $151.67. The stock was last seen on Thursday trading at $138.88.

Wynn Resorts Ltd. (NASDAQ: WYNN): Credit Suisse upgraded the luxury casino giant to Outperform from Neutral and has a $117 target. The consensus target is $82.32 for now. The stock closed almost 8% higher on Thursday at $65.23.

Zscaler Inc. (NASDAQ: ZS): Jefferies initiated coverage with a Hold rating and a $200 price target. The consensus target is higher at $220.03. The stock closed on Thursday at $175.99.

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One big advantage to buying beaten-down stocks with substantial dividends is that investors are paid to wait for the recovery. Eight well-known stocks now look ripe for the picking, and all are rated Buy on Wall Street.

Are regulators going easy on buy now, pay later firms such as Affirm and Block? Also, a surge in share buybacks is underway, but would dividend hikes be better for investors?

Thursday’s top analyst upgrades and downgrades included Cheniere Energy, Constellation Energy, Coty, DraftKings, Enovix, Mondelez International, Oracle, Shopify, Southern Copper, Toast, Walmart and Workday.

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