The futures were trading higher as we get ready to finish up a very volatile week on Wall Street. All the major indexes finished the day dramatically lower on Thursday. The April nonfarm payrolls came in above expectations, and that is a data point that could push the Federal Reserve to hike once more in June before pausing.

Investors and traders also continue to closely watch the banking system, as PacWest Bancorp crashed on Thursday, down 50%, after rumors of a possible sale surfaced. After tamping down worries of the potential for contagion in the banking system in March, those concerns are now resurfacing in a big way.

Treasury yields were higher across the curve Thursday, especially for the shorter maturities, where buyers continued to initiate or add to positions. The ongoing bank issues and uncertainty over the next move by the Federal Reserve are keeping the short-end maturities in strong demand. The two-year paper dived to a 3.79% yield, while the benchmark 10-year Treasury closed the day at 3.35% the lowest since April 6, as the inversion between the two securities continues to tighten.

Brent and West Texas Intermediate crude closed flat, after a wretched week that saw prices drop 11% in the previous three sessions. Concerns over China’s weaker than expected economic data and slowing domestic growth have heightened demand fears. The odd anomaly is that oil inventories have dropped below the five-year average for the first time this year, and that in theory should support pricing.

Gold continued to push higher as worried investors seek the safety of commodities. The last trade for Thursday saw the bullion close at $2,058, up $2.90. Bitcoin was a loser once again, dropping 0.75% to close at $28, 817.

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, May 5, 2023.

Blackbaud Inc. (NASDAQ: BLKB): Baird upgraded the stock to Outperform from Neutral and lifted its $66 target price to $84. The consensus target is $65.25. The stock closed Thursday’s session at $70.10, up over 4% on the day after topping first-quarter earnings estimates.

Builders FirstSource Inc. (NYSE: BLDR): RBC Capital Markets upgraded the company to Outperform from Sector Perform and launched the target price to $135 from $78. The consensus target is $106.71. The shares closed on Thursday at $106.87.

CVS Health Corp. (NYSE: CVS): Goldman Sachs lowered its $100 price target to $88 while keeping a Buy rating. The consensus target is $105.71. Thursday’s close was at $68.79.
DHT Holdings Inc. (NYSE: DHT): Jefferies downgraded the stock to Hold from Buy and trimmed its $12 target price to $10. The consensus target is $12.79 for now. The shares closed on Thursday at $8.26, which was down almost 9% on the day, after earnings and revenue missed estimates.

Enviva Inc. (NYSE: EVA): Truist Financial’s downgrade to Sell from Buy included a price target slash to $10 from $40. The consensus target is $39.75 for now. The stock was blasted Thursday, closing down 68% at $7.01, on earnings and guidance disappointments and changing capital allocation priorities.

Ferguson PLC (NYSE: FERG): UBS initiated coverage with a Buy rating and a $165 target price. The consensus target is $144.87. Thursday’s close was at $137.68.

Frontdoor Inc. (NASDAQ: FTDR): J.P. Morgan upgraded the stock to Overweight from Neutral. That analyst also raised the $30 price target (the same as the consensus target) to $38. Thursday’s $30.04 closed up close to 13% for the day after solid results.

Frontier Group Holdings Inc. (NASDAQ: ULCC): As Susquehanna downgraded the carrier to Neutral from Positive, it lowered its $12 target price to $10. That compares with a $17.00 consensus target and Thursday’s close at $7.65, which was down almost 20% after earnings disappointed.

HomeTrust Bancshares Inc. (NASDAQ: HTBI): Piper Sandler resumed coverage with an Overweight rating and a $25 target price. The consensus target is $27.88. The stock closed down over 6% on Thursday at $19.19 despite earnings and revenues topping estimates.

HubSpot Inc. (NYSE: HUBS): Jefferies reiterated a Buy rating with a $500 price target. The consensus target is just $450.22. Thursday’s $448.85 close was up over 7%, after earnings beat estimates.

Incyte Corp. (NASDAQ: INCY) BofA Securities downgraded the stock to Neutral from Buy but kept an $84 target price. That compares with a $84.62 consensus target and Thursday’s final print of $66.19.

Louisiana-Pacific Corp. (NYSE: LPX): TD Securities raised its Hold rating to Buy and its $63 target price to $75. The $65.33 consensus target also compares with Thursday’s closing print of $60.42.

McDonald’s Corp. (NYSE: MCD): Zacks cites the safe-haven status of its Bull of the Day stock, as well as its corporate restructuring. Shares of the fast-food giant last closed at $295.16, and the $317.55 consensus price target would be an all-time high.

Neurocrine Biosciences Inc. (NASDAQ: NBIX): Guggenheim upgraded the stock to Buy from Neutral. Its $145 target price is well above the $124.39 consensus target and Thursday’s close at $95.84.

Newell Brands Inc. (NYSE: NWL): The Zacks Bear of the Day followed up a down year in 2022 with disappointing first-quarter results, points out the analyst. Its shares have traded as high as $24.70 in the past year but closed most recently at $9.81. That is down about 39% in the past 90 days.

PacWest Bancorp (NASDAQ: PACW): D.A. Davidson not only dropped its Buy rating to Neutral but slashed the $19 target price to $3. The consensus is $14.81 for now. The stock closed on Thursday at $3.17, which was down 50%, as it frantically looks for a buyer.
Procore Technologies Inc. (NASDAQ: PCOR): The Goldman Sachs upgrade was to Buy from Neutral, and its $63 target price increased to $75. The consensus target is $75.29. Thursday’s close was at $56.75, up almost 7% on the day after outstanding quarterly results were posted.

Revolve Group Inc. (NASDAQ: RVLV): BTIG Research reiterated a Buy rating but lowered the target price to $27 from $35. The consensus target is $27.94. The stock closed on Thursday at $18.51, down almost 8% for the day despite a first-quarter earnings beat.

Trimble Inc. (NASDAQ: TRMB): Goldman Sachs reduced its $70 price target on the Buy-rated shares to $60. The consensus target is $59.73. Thursday’s final trade was for $47.60 a share.

Verisk Analytics Inc. (NASDAQ: VRSK): BofA Securities upgraded the stock to Buy from Neutral, and its price target exploded higher, to $243 from $167. The consensus target is $204.50. The shares closed on Thursday at $205.76.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX): The analysts at Piper Sandler resumed coverage with an Overweight and a $385 target price. That compares with the $363.52 consensus target and Thursday’s final print of $346.59.

Wingstop Inc. (NASDAQ: WING): Citigroup’s downgrade was to Market Perform from Outperform, but it also raised its $204 target price to $224. The consensus target is $197.81. The stock closed down almost 5% on Thursday at $207.57 despite solid results.

Wix.com Ltd. (NYSE: WIX): Raymond James lifted its Market Perform rating to Outperform with a $96 target price. The consensus target is $107.12. The shares closed on Thursday at $75.33.

ZoomInfo Technologies Inc. (NASDAQ: ZI): D.A. Davidson started coverage with a Buy rating and a $30 target price. The consensus target is $32.65. Thursday’s $20.57 close was down 4% on the day despite it meeting analysts’ estimates.

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With more banks failing and interest rates still rising, it may be time for worried investors to take profits on the mega-cap winners and move to safer old-school stocks that can survive an economic downturn. Five Dow Jones industrial stocks offer good entry points now and dependable dividends.

The cost of housing has skyrocketed in some major U.S. cities.

Thursday’s top analyst upgrades and downgrades included Advanced Micro Devices, Amcor, Caesars Entertainment, CarMax, Chewy, Marriott International, Microsoft, Molson Coors Beverage, NXP Semiconductors and Uber Technologies.

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