Top Wall Street analysts say buy Apple & Foot Locker

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Top Wall Street analysts say buy Apple & Foot Locker

This image dated October 27, 2022 shows a USB-C (USB Type-C) cable in front of a displayed Apple logo.

Cube Ruvic | Reuters

With recession fears lingering, market experts continue to look for ways to pick promising stocks that are trading at attractive levels. Here are five stocks chosen by Wall Street’s top analysts according to TipRanks, a platform that ranks analysts based on their past performance.

Apple

First on the list is an innovative tech giant Apple (AAPL). The company’s performance in the December quarter was significantly impacted by supply chain disruptions related to the iPhone in China, adverse currency effects and macroeconomic challenges. Still, several analysts, including Evercore ISI analyst Amit Daryanani, remain bullish on the stock.

In a recent research note, Daryanani addressed investor concerns about his bullish stance on Apple, despite its premium valuation relative to big tech companies. The analyst argued that Apple’s top rating in the current macro environment “is not only justified, but could be further enhanced” given its superior efficiency metrics such as return on invested capital (5-year average ROIC of 39% vs. average the Apple peer group). 21%), solid free cash flow and return on investment.

Additionally, Daryanani explained that “AAPL has typically operated with a higher level of consistency and, importantly, lower volatility.” He explained that the company has been “more rational” in hiring during the pandemic, unlike several tech companies that have aggressively increased their headcount. As a result, Apple avoided excessive stock-based compensation costs or layoffs.

Daryanani reiterated a buy rating on Apple with a price target of $190. The analyst ranks 236th among more than 8,000 analysts on TipRanks. Additionally, 60% of its ratings were profitable, with an average return of 11.4%. (See Apple Blogger Opinions and Opinions on TipRanks)

cloud flare

Next is cloud flare (NETWORK), a cloud-based content distribution network and security provider. The company has an extensive global network reaching more than 285 cities in over 100 countries, supporting websites, APIs (Application Programming Interface) and mobile applications.

TD Cowen analyst Shaul Eyal believes the market is “underestimating Cloudflare’s ability” to leverage the breadth of its global footprint to “efficiently deliver new applications, including advanced security, with limited overhead.”

Eyal, ranked 11th out of more than 8,300 analysts tracked on TipRanks, expects Cloudflare’s revenue to grow more than 38% this year, driven by new business and expansion within the company’s existing customer base. (See Cloudflare Hedge Fund Trading Activity on TipRanks)

Eyal noted that over 40% of the company’s revenue is generated internationally, and the company “disrupts” several market segments, including infrastructure, telecom, security, and edge computing. Currently, these segments represent a total addressable market of over US$115 billion, which is expected to grow to US$135 billion by 2024.

Eyal reiterated a buy rating on Cloudflare with a price target of $75. Remarkably, Eyal has a 67% success rate and each of his reviews has returned an average of 24.1%.

foot cabinet

Sneaker and sportswear retailers this week foot cabinet (FL) delivered positive results for the fourth quarter of fiscal 2022. The company announced its revived partnership with Nike and a long-term growth strategy that includes multiple initiatives such as: B. Transforming its real estate footprint by opening stores with new formats, shifting to locations outside of malls, and closing underperforming stores.

As part of its long-term growth plan, Foot Locker, led by Mary Dillon, is targeting fiscal year 2024 through 2026 for revenue growth of 5% to 6% and adjusted earnings per share growth in the low to mid 20’s.

Guggenheim analyst Robert Drbul expects Foot Locker to benefit from CEO Dillon’s “extensive knowledge and in-depth understanding of retail outside of malls and large department stores.” However, he feels the company’s strategic plan will need time to materialize as Dillon is still building her team.

Drbul reiterated a Buy rating on Foot Locker stock with a price target of $60, noting that “2023 will be a reset year as Foot Locker navigates its revived relationship with Nike (NKE), repositions its Champs banner , optimizing its fleet, absorbing exit costs, increasing its technology investments and driving further cost savings.”

Drbul ranks 440th among more than 8,000 analysts followed on TipRanks. Its ratings were profitable 61% of the time, with each rating delivering an average return of 7.5%. (See Foot Locker stock chart on TipRanks)

Cisco systems

Cisco (CSCO) offers a wide range of products and solutions for networking, security, collaboration and the cloud. Ivan Feinseth, an analyst at Tigress Financial, recently reiterated a buy rating on Cisco with a price target of $73, saying the company continues to benefit from the increasing need for faster, more secure networks and cloud hosting infrastructure.

Feinseth noted that the company built a large backlog during the pandemic as enterprise customers continued to upgrade their networks, fueled by “the rising demand for information access and support for larger networks.”

“The recovery and growth in IT spending in 2023 and beyond, coupled with the ongoing shift from CSCO to service- and software-driven subscription revenue, will continue to drive accelerating trends in business performance,” Feinseth said. (See Cisco Insider Trading Activity on TipRanks)

The analyst also stated that Cisco’s solid balance sheet and cash flow continue to support its growth efforts, strategic acquisitions and increased shareholder returns. Feinseth ranks 164th among more than 8,000 analysts on TipRanks. Additionally, 62% of its valuations were profitable, with an average return of 11.8%.

Acushnet Holdings

Feinseth is also optimistic acoustic net (GOLF), a company that sells golf products and owns leading brands such as Titleist and FootJoy. The analyst recently upgraded GOLF stock to ‘buy from hold’ and raised the price target to $62 from $50.

Feinseth expects Acushnet’s impressive brand equity and market-leading products, coupled with new launches, to drive further gains in the stock. Feinseth noted that the company’s 2022 results were fueled by double-digit sales growth in its Titleist golf clubs, Titleist equipment and FootJoy golf apparel segments.

The analyst noted that Acushnet’s performance in 2022 benefited from a wide range of innovative products, including new TSR models that quickly became the “most played model on the PGA Tour.” (See Acushnet Financial Statements on TipRanks)

“GOLF is well positioned to benefit from the continued post-pandemic growth in golf, including rounds played and growth in player population, particularly younger and new golfers,” Feinseth said.