Shoppers queue outside a Costco to buy supplies after the Hawaii Department of Health on Wednesday advised residents to stock up on a 14-day supply of food, water and other necessities for the potential risks of the novel coronavirus in Honolulu, Hawaii , USA, to stock up February 28th, 2020.
Courtesy of Duane Tanouye via REUTERS
As we near the end of 2022, there is a lot of uncertainty looming in 2023 – and the challenges facing this world are far from over.
This year, investors have faced a sharp sell-off in stocks, rising bond yields and dramatic swings in oil prices. Although market turbulence is only a temporary event, there is no telling how long it might last.
A long-term focus allows investors to tune out the noise of daily volatility and focus on building a strong portfolio.
Here are five stocks picked by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Nova measurement
Nova measurement (NVMI), a provider of metrology solutions to the semiconductor manufacturing industry, has benefited from a reduced presence in the memory market, which has suffered major setbacks this year. About 70% of Nova’s products are destined for the foundry market, which hasn’t been drastically affected by the slowdown in the semiconductor industry this year.
Benchmark analyst Mark Miller, who recently hosted a virtual meeting with Nova management, pointed out that the company has grown at a compound annual growth rate of 15% to 20% over the past five years, driving its growth in WFE (wafer Fab Equipment). Expenditure. The analyst is also bullish on Nova’s prospects in this space. “While a weaker 2023 is expected, Nova expects to once again outperform WFE spend,” Miller said.
Miller notes that Nova’s longer-term prospects are positive given the demand drive created as the U.S., Europe and China ramp up in-house chip manufacturing over the next five years. (See Nova measures stock investor sentiment on TipRanks)
Additionally, the second half of 2023 is expected to be stronger due to a potential recovery in the storage market and increasing orders from its key customer. Taiwan semiconductor manufacturing (TSM).
The analyst reiterated a buy rating on the stock with a price target of $100.
Miller, ranked 276th out of more than 8,000 analysts on TipRanks, has posted 51% profitable reviews over the past year. Additionally, each of its reviews has yielded an average return of 14.2%.
Costco
Costco (COSTS) has a unique store that offers bulk groceries and general goods at discounted prices through member stores. Strategic investments, customer focus and a focus on membership growth have helped the company weather a turbulent year.
Recently, Ivan Feinseth, an analyst at Tigress Financial Partners, said he sees consumer spending trends improving later in 2023, and this will be a catalyst for Costco’s revenue growth. Additionally, the retailer’s continued store growth and international expansion are expected to drive upward business performance trends. (See Costco Dividend Date and History on TipRanks)
The analyst also believes that Costco’s dominance in the inventory-based retail market drives its competitive advantage. Feinseth lowered his price target to $635 from $678 but reiterated his buy rating on the stock. The analyst views “the recent pullback as a big buying opportunity” and expects Costco’s loyal customer base and robust business model to continue to drive growth.
Feinseth is ranked 271st among more than 8,000 analysts. Notably, 58% of its reviews were successful, with each review delivering an average return of 10.7%.
Amazon
Monness Crespi Hardt technology expert Brian White has always been bullish Amazon (AMZN). The analyst keeps an eye on the long-term perspectives of the company in the rapidly advancing digital transformation.
White is optimistic about the growth path ahead of Amazon in e-commerce, Amazon Web Services, digital media, advertising, Alexa, robotics, AI, and others. Despite a challenging near-term macroeconomic environment, the ongoing pandemic is expected to further drive digital transformation, “which will benefit the company’s long-term business model.”
The analyst reiterated his buy rating on Amazon with a price target of $136. (See Amazon Hedge Fund Trading Activity on TipRanks)
White’s convictions at Amazon were 46% successful. Additionally, 54% of its overall reviews were profitable, with each review yielding an average return of 8.1%. The analyst was ranked 716th among over 8,000 analysts tracked on TipRanks.
Meta
Let’s move on to another of White’s favorite stocks: meta platforms (META), the analyst remained bullish with a Buy rating and a price target of $150. The company is ending a difficult year full of challenges expected to continue into 2023.
Over the longer term, however, the analyst sees Meta capitalizing on secular growth opportunities in digital ads and driving innovation in the Metaverse. White expects the Facebook parent’s rating to increase significantly over time. (See website traffic trends for meta platforms on TipRanks)
“With revenue growth of 34% pa over the past five years, EPS at 32% CAGR, and an attractive operating margin, we believe meta-platforms should trade at a premium to the market and technology sector over the long term. We expect the current macroeconomic and geopolitical environment to weigh on adspend in the coming quarters,” said White.
Ambarella
Recently, Stifel analyst Tore Svanberg reiterated his bullish stance on the chip company ambarella (AMBA), which specializes in the development and marketing of video compression and image processing solutions. As a player in the struggling semiconductor industry, AMBA’s stock has fallen sharply this year. Nonetheless, here’s a look at the positives that Svanberg has pointed out.
The analyst sees the company as a leader in the rapidly growing, long-term video processing technology market. (See Ambarella Blogger Opinions and Opinions on TipRanks)
Svanberg highlighted Ambarella’s flow of deal wins. The most recent deal was with Bosch Mobility Systems, the world’s largest automotive Tier 1 original equipment manufacturer.
The analyst said the company now has deals with two of the top three global Tier 1 automotive OEMs. Svanberg also said that AMBA “CV3” is “well positioned to deliver on AMBA’s ambitious automotive aspirations, with a 6-year design win funnel estimated at $2.3 billion.” For context, CV3 is Ambarella’s flagship domain controller SoC (system on a chip).
“In summary, we believe AMBA is well-positioned to be a key, long-term beneficiary of CV/edge processing, particularly in conjunction with the company’s highly strategic acquisition of Oculii (giving it a unique advantage in vision/radar sensor fusion technology procured) and therefore remain committed to our buy on AMBA shares,” said Svanberg, who also raised the price target to $100 from $88.
Svanberg ranks 32nd among more than 8,000 analysts on TipRanks. 65% of its reviews were profitable, and each has averaged a 20.7% return.