The futures were mixed Thursday after Federal Reserve Chair Powell delivered a speech and commentary at the Brooking Institute Wednesday that was pretty much in line with the recent hawkish commentary. While he indicated that rate hikes may be lower in the future, the terminal rate, or ending point for rate hikes, now appears to be locked onto the 5.00% to 5.25% range.
The pending lower rate increases were all the risk-off crowd needed and stocks took off, with all the major indexes closing much higher. The Nasdaq jumped 4.4% by the close. The S&P 500 and Dow Jones industrials were up big as well. Now all eyes on Wall Street will be focused on Friday’s nonfarm payroll report for November.
Treasury yields were mixed across the curve after Powell’s remarks reinforced what many bond traders have been anticipating: that rate hikes will indeed be smaller. Top analysts on Wall Street noted that the spread between the 10-year note and the two-year Treasury yield has been inverted for 102 trading days. This year’s current streak ranks as the sixth longest in data going back to 1977.
Brent and West Texas Intermediate crude roared higher on Wednesday after the U.S. Energy Information Administration reported a huge 12.6 million barrel draw for the week that ended November 25. The agency also reported that at the current 419.1 million barrels, oil inventories are 8% below the five-year average for this time of the year. Natural gas ended the day down almost 4% at $6.97. Both gold and Bitcoin closed higher on Wednesday.
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 Thursday, December 1, 2022.
Allogene Inc. (NASDAQ: ALLO): Oppenheimer reiterated an Outperform rating with a $32 target price. The consensus target is $25.00. The shares closed on Wednesday at $9.86.
AppLovin Corp. (NASDAQ: APP): Jefferies initiated coverage with a Hold rating and a target price of $14. The consensus target is $28.22. Wednesday’s $14.47 close was up close to 8% for the day.
Biogen Inc. (NASDAQ: BIIB): Goldman Sachs maintained a Buy rating with a $370 target price. The consensus is lower at $311.30. The stock closed almost 5% higher on Wednesday at $305.17 after positive clinical data on its Alzheimer’s drug candidate Lecanemab.
Carvana Co. (NASDAQ: CVNA): As BofA Securities downgraded the stock Neutral from Buy, it slashed its $43 target price to $10. The consensus target is $19.83. The stock’s $7.68 close on Wednesday up over 4% despite the downgrade.
C.H. Robinson Worldwide Inc. (NASDAQ: CHRW): This homebuilder is the Zacks Bear of the Day stock. The analyst points out that it has lagged the market over the past three months and its earnings outlook has slipped. The shares closed most recently at $100.22, above the consensus price target of $97.83.
Consolidated Edison Inc. (NYSE: ED): BofA Securities upgraded the legacy utility company to Neutral from Underperform and has a $95 target price. The consensus target is $83.00, but Wednesday’s close was up at $98.04.
CrowdStrike Holdings Inc. (NASDAQ: CRWD): Oppenheimer lowered its $250 price target on the Outperform-rated cybersecurity leader to $175. The consensus target is $232.73 for now. Shares closed Wednesday at $117.65, down a stunning 15% after revenue topped estimates but the forward guidance was well below expectations.
DocuSign Inc. (NASDAQ: DOCU): Jefferies maintained a Hold rating with a $50 target price. The consensus target is up at $80.72. The shares closed almost 6% higher on Wednesday at $47.07.
Equinix Inc. (NASDAQ: EQIX): Stifel raised its $755 target price to $800 while maintaining a Buy rating. The consensus target is lower at $723.59. The stock closed on Wednesday at $690.65.
Fisker Inc. (NYSE: FSR): Evercore ISI initiated coverage with an Outperform rating and a $15 target price. The consensus target is $13.44. The shares closed Wednesday at $7.74, up almost 7% on the day, after the positive analyst report.
Foot Locker Inc. (NYSE: FL): Jefferies reiterated a Buy rating with a $47 price target after some big C-suite changes. The consensus target is just $38.21. Wednesday’s final trade was for $39.80 a share.
Intuit Inc. (NASDAQ: INTU): Goldman Sachs kept a Buy rating and a $575 target price after the company posted strong quarterly results. The consensus target is $501.48. The stock closed on Wednesday at $407.59, up over 7% on the day.
Intuitive Surgical Inc. (NASDAQ: ISRG): Stifel raised its $260 target price on the Buy-rated shares to $300. The $263.26 consensus target is lower than Wednesday’s close at $270.39, which was a 5% gain on the day.
JinkoSolar Holding Co. Ltd. (NYSE: JKS): Zacks has selected this apparel stock as its Bull of the Day, citing “extremely enticing” valuation levels for a growth-focused company in a potentially game-changing industry. The shares last closed at $51.28, well off the 52-week high of $76.92.
LPL Financial Holdings Inc. (NASDAQ: LPLA): Morgan Stanley downgraded the broker-dealer from Overweight to Equal Weight and lowered its $281 target price to $239. The consensus target is $277.08. The stock closed on Wednesday at $236.71.
LSB Industries Inc. (NYSE: LXU): Jefferies initiated coverage with a Buy rating and a $20 target price. The consensus target is $22.32. The stock closed on Wednesday at $15.42, up close to 4% on the day.
Rivian Automotive Inc. (NASDAQ: RIVN): Evercore ISI started coverage of the electric vehicle stock with an In Line rating and a $35 target price. The consensus target is up at $47.29. The last trade for Wednesday was reported at $32.04. That was up 11% on the day, as the company is ready to unveil the R2 vehicle platform.
RXO Inc. (NYSE: RXO): BofA Securities initiated coverage with a Buy rating. Its $22 price target is the same as the consensus target. The stock closed over 4% higher on Wednesday at $19.00.
Seagen Inc. (NASDAQ: SGEN): Oppenheimer maintained an Outperform rating with a $188 target price after meeting with new CEO David Epstein, who ran the Novartis oncology business. The consensus target is $164.90. Wednesday’s $121.39 close was up nearly 4% on the day.
Shopify Inc. (NYSE: SHOP): Jefferies reiterated a Buy rating after the company posted glowing numbers for the Black Friday/Cyber Monday shopping period. The analysts have a $40 target, while the consensus target is $40.65. The shares closed Wednesday at $40.88, a gain of over 10% on the day.
Southwest Gas Holdings Inc. (NYSE: SWX): BofA Securities downgraded the stock to Neutral from Buy and lowered its $87 target price to $65. The consensus target is $80.20. The final trade on Wednesday at $68.46.
S&P Global Inc. (NYSE: SPGI): Stifel reiterated a Buy rating and raised its $369 target price to $407. The consensus target is $388.18. Wednesday’s close was at $352.80.
Sprouts Farmers Market Inc. (NASDAQ: SFM): Goldman Sachs raised its $26 target price on the Sell-rated stock to $29. The consensus target is $31.77. The shares closed on Wednesday at $34.33.
UnitedHealth Group Inc. (NYSE: UNH): Oppenheimer reiterated an Outperform rating with a $610 target price. That compares with the $595.30 consensus target and Wednesday’s closing print of $547.76.
24/7 Wall St.United Natural Foods Inc. (NYSE: UNFI): Goldman Sachs raised its $40 target price on the Neutral-rated stock to $45. The consensus target is $49.00. The stock closed almost 4% higher on Wednesday at $547.76.
Workday Inc. (NASDAQ: WDAY): Goldman Sachs reiterated its Buy rating after the company posted solid results. Its $230 target price is well above the $202.64 consensus target. Wednesday’s close at $167.90 was up over 17% for the day on the earnings release.
XPO Logistics Inc. (NYSE: XPO): Citigroup resumed coverage with a Neutral rating and a $42 target price. The consensus target is $62.18. Wednesday’s close was at $38.62.
The holiday shopping season is off to a strong start, and five companies have shined the brightest so far. It is a good bet that Amazon, Walmart and these other top stocks will end up in the winners’ circle come the new year.
Wednesday’s top analyst upgrades and downgrades included APA, Delta Air Lines, Generac, Lululemon Athletica, Microchip Technology, Paccar, Philip Morris International, Pinduoduo, Shopify, Taboola.com and Welltower.
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