Investors aren't likely to get a break from the market's tumult any time soon.
Stocks were off to a rocky start at the beginning of 2022, and Russia's war on Ukraine has introduced further uncertainty and volatility for global financial markets. A new development is on the horizon for traders this week: a key meeting for the Federal Reserve and the likely beginning of interest rate hikes.
Near-term trading is hard enough under these circumstances. Top analysts are reminding investors to maintain a long-term perspective – and they've highlighted their favorite names, according to TipRanks, which tracks the best performing analysts.
Here are five stocks that have caught the attention of Wall Street's top pros.
The prolonged sell-off in tech names has stung many investors, and the volatility of recent weeks has put off even more. However, for those willing to buy the dip, Marvell's (MRVL) valuation may be too hard to resist. That is the opinion of Quinn Bolton of Needham & Company, who commended the semiconductor company for its recently reported quarterly performance.
Despite slowdowns in the economy and persisting supply-side constraints, MRVL managed to emerge from the fourth quarter beating Wall Street consensus estimates on gross margins and earnings per share. Additionally, it exceeded guidance expectations on the same two metrics, as well as sales. (See Marvell Dividend Data on TipRanks)
In his report, Bolton added that Marvell recorded an all-time high level of bookings, and a sky-high backlog of non-perishable orders. These factors provide a more visible bullish outlook for analysts to rate the stock.
This was the case with Bolton, who reiterated a buy rating on Marvell and adjusted his price target to $105.
The analyst noted that the chip producer has a “solid history of execution” and has expanded “its product portfolio targeting high margin, high growth cloud/5G/automotive infrastructure markets.” He contends that the company could capture some of the highest revenue growth rates among its well-established peers.
Further, Bolton said that Marvell “remains our top semiconductor pick for 2022.”
Out of almost 8,000 analysts on TipRanks, he ranks as No. 3. Bolton has been correct when picking stocks 73% of the time and has returned an average of 74.7% on his ratings.
FIGS (FIGS) has taken the hospital scrub industry by storm, and the company has lately been expanding its product offering to its customer base. The firm recently pulled off solid quarterly results, besting consensus estimates on revenues and adjusted earnings per share.
Robert Drbul of Guggenheim Partners gave his hypothesis on the retailer, highlighting the firm's high levels of consumer retention. He said that half of all new FIGS customers return again within a year, and those who make purchases in the second year come back the third 95% of the time. (See FIGS Estimated Monthly Visits on TipRanks)
The company has managed to penetrate a highly fragmented market, and it exists in one of the most rapidly growing labor sectors domestically.
Drbul rated the stock a buy and assigned a price target of $35.
The analyst added that the firm’s international outreach has been successful. He also mentioned that FIGS lifestyle products, those beyond its core scrub offerings, expanded to represent 17% of quarterly revenues. This is particularly significant for the company’s outlook as it indicates a brand awareness as typical apparel, and not just for work.
While supply and shipment challenges pressured the company’s gross margins, the impact was less than anticipated by Drbul, and the pricing power was enough to offset increased freight costs.
On TipRanks, Drbul ranks as No. 115 out of almost 8,000 professional analysts. He has been successful 65% of the time and maintains an average return of 25.8% on his stock picks.
This development soothes growing investor concerns over whether the plant would ever open, and it sets up the company to continue ramping production to meet its massive demand.
Dan Ives of Wedbush published a report on the instance, noting that the factory is central to any bullish evaluation on the stock. Until now, Tesla had been producing vehicles in Shanghai and shipping them over to Europe. This model had quickly become unsustainable, further affected by high shipping costs in 2021.
Ives rated the stock a buy and maintained his $1,400 price target.
The analyst anticipates giga Berlin’s production capacity to ramp to 500,000 vehicles per year. Coupled with its newly opened Austin facility, this could push Tesla’s total output to 2 million by the end of 2022, he said. This is in contrast to 2021’s 1 million vehicles, and it represents a massive improvement in supply.
This output is of paramount importance to the automaker, as its backlog currently stretches to almost half a year in delays for orders. Moreover, Ives said Berlin's gigafactory will allow Tesla to establish “a major beachhead” on European soil at a time when EVs are surging in popularity.
Of TipRanks’ almost 8,000 analyst-wide database, Ives ranks as No. 432. His success rate stands at 53%, and he has returned 20.4% on average from his ratings.
Warner Music Group (WMG) has recently seen weakness in its share price, although its fundamental performance does not appear to be the root cause. In contrast, the company has been investing heavily in talent, content, and leveraging new innovations to drive growth.
Ivan Feinseth of Tigress Financial Partners recently said that the firm has several runways for growth, and he sees the declines in valuation as an attractive buying opportunity.
Feinseth rated the stock a buy, and he maintained his price target of $52.
In his report, the analyst wrote that “the emergence of the Metaverse will create a whole new paradigm for music integration” and that the “immersive environment will be enhanced... on an increasingly individualized basis.”
Moreover, Feinseth highlighted the performances in the company’s recording, publishing, and streaming businesses. This particular factor was evident in WMG’s recent quarterly earnings release, in which revenues rose 21% on a year-over-year basis. (See Warner Music Group Earnings Data on TipRanks)
Warner Music Group has been utilizing Sodatone, an acquired digital music data analysis and tracking platform, to discover and develop new artists and their content.
Out of close to 8,000 financial analysts, Feinseth ranks as No. 92. He has been right when rating stocks 64% of the time, and he has an average return per rating of 28.8%.
Cybersecurity concerns have heightened since Russia's attack on Ukraine. In turn, shares of CrowdStrike (CRWD) have rebounded slightly. The stock still has considerable room to grow before it gets close to its November 2021 highs.
Taking a bullish stance on the cybersecurity firm is Jonathan Ruykhaver of Baird, who noted CrowdStrike’s performance in its most recent quarterly earnings report. The company surpassed Wall Street consensus estimates on annual recurring revenue, revenue, and non-GAAP earnings per share. (See CrowdStrike Stock Charts on TipRanks)
Ruykhaver rated the stock a buy, and he calculated a price target of $225.
CrowdStrike’s robust product line, which includes services like identity protection, cloud workload security, and log management, are being adopted more by more customers. Ruykhaver mentioned that 57% of customers have been using five or more modules, an impressive statistic considering its increase from last year’s 47%.
The analyst wrote that “we see meaningful room for growth for CrowdStrike in endpoint security and emerging markets like cloud and like the long-term outlook given innovation and history of execution.”
Ruykhaver ranks No. 17 out of nearly 8,000 professional analysts on TipRanks. His success rate stands at 78%, and he has maintained an average return of 54.2%.