Nvidia CEO Jensen Huang demonstrates the NVIDIA Volta GPU computing platform during his keynote speech at CES in Las Vegas on January 7, 2018.
Rick Wilking | Reuters
Even if the holiday week ended on a positive note for stocks, expect more volatility.
All eyes are on the upcoming November payroll report, due out on December 2nd. Also, with the Federal Reserve meeting on December 13-14, investors are awaiting the next steps in the central bank’s policy campaign. Until the end of the year there is still enough time to get rid of the shares.
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That means investors need to shift their focus to longer-term prospects rather than fixating on short-term fluctuations in the market. Below are five stocks picked by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
NVIDIA
NVIDIA (NVDA) was impacted by weaker demand for its chips from the gaming and data center end markets due to macro headwinds and supply chain issues.
After the company released its quarterly results, Susquehanna analyst Christopher Rolland noted that Nvidia was “getting back on track.” This prompted him to reiterate a buy rating on the stock and raise the price target to $185 from $180. (See Nvidia Dividend Date and History on TipRanks)
While elevated channel inventory is still an issue, Nvidia expects it to return to normal levels starting next quarter. That aside, Rolland was reasonably pleased with the quarterly performance and trends. Nvidia’s gross profit guidance at a lower revenue rate impressed the analyst, who said it “could point to significantly higher ASPs (average selling price) for both new gaming and data center products.”
The analyst said that of the four major end markets (auto, data center, professional visualization and gaming) at least three are expected to grow three times faster than the semiconductor market as a whole.
Rolland ranks 26th among more than 8,000 analysts tracked on TipRanks. Its track record over the past year shows a 69% success rate and an average return of 21.8% per review.
Marvell technology
Another stock pick by Rolland is the semiconductor company Marvell technology (Murly), which is scheduled to release its results for the third quarter of fiscal 2023 on December 1. Ahead of the release, the analyst identified several dampening factors that are likely to be a sore point in the near term. With that in mind, Rolland has lowered the price target from $90 to $75.
The company’s nearline HDD business is likely to have remained weak in the quarter due to a large inventory build. Overall, the analyst expects Marvell to have had a slightly disappointing quarter, despite some tailwinds from the North American rollout of 5G infrastructure. (See Marvell Stock Chart on TipRanks)
Looking beyond the quarter, Rolland sees several benefits for Marvell. “We believe the start of India’s 5G deployments could be positive for the narrative (with revenues to come later in 2023). Marvell’s 5G products continue to roll out at both Samsung and Nokia (two major customers) as both companies’ network businesses beat expectations,” the analyst said.
Rolland reiterated his buy recommendation for the company.
Costco
Costco (COSTS) operates an international chain of warehouse clubs offering branded and private items across a variety of product categories. Recently, amid food inflation, slowdown and other economic forces, Bank of America analyst Robert Ohmes analyzed the company’s prospects and expressed optimism.
“We expect high grocery inflation to drive further stock gains for the Warehouse Club channel (including Costco) given the strong value proposition and price positioning across overlapping SKUs versus bulk and traditional grocery stores,” Ohmes said. (See Costco Website Traffic on TipRanks)
The analyst pointed out that Costco spawns more than 20 new clubs annually. Additionally, he expects solid trends in traffic and membership renewal rates to continue. In international markets, too, the continued growth in same-store sales is positive for the company
Ohmes ranks 854th among more than 8,000 analysts on TipRanks. The analyst has provided profitable ratings 56% of the time, and each one has yielded an average return of 8.3%.
Monday.com
Earlier this month, providers of project management tools Monday.com (MNDY) delivered excellent quarterly results that boosted confidence from investors and analysts alike. Among Monday.com’s bulls was Tigress Financial Partners analyst Ivan Feinseth, who reiterated a buy rating for the stock.
Feinseth noted that the company’s performance would benefit from consistently high customer adoption rates. Additionally, Monday.com’s competitive advantage lies in its low-code/no-code working operating system. He also claims that the platform’s easy integration and ease of use will continue to attract significant customers and drive revenue growth. (See Monday.com Financial Reports on TipRanks)
“Ongoing innovation and growth will continue to drive MNDY’s already strong brand equity, coupled with its high-margin subscription-based SaaS (Software as a Service) revenue model, will drive a continued acceleration in business performance trends, which will result in increasing ROI, further gains in economic profit and long-term value creation for shareholders,” said Feinseth.
He ranks 232nd among more than 8,000 analysts on TipRanks. Feinseth has provided profitable ratings 60% of the time, and each has delivered an average return of 11.3%.
Disney
entertainment company Disney (DIS) is another stock on Feinseth’s buy list. The analyst recently reiterated a buy rating and a $177 price target on the stock, bolstered largely by the return of former CEO Bob Iger, who is expected to drive “a return to the dominance of creativity.”
Additionally, the solid content list is expected to fuel the company’s growth. Feinseth is also optimistic about Disney’s ongoing investments in upgrading its theme parks, new technologies and continued content development, which he believes will continue to drive the company’s performance. (See Walt Disney Hedge Fund Trading Activity on TipRanks)
“DIS will continue to increase theme park attendance with ongoing park upgrades and the introduction of new attractions; the continued leverage of its advanced reservation system results in capacity optimization and increased revenue, and its virtual parking assistant Genie and Genie+ greatly enhance the guest experience. ‘ Feinseth said.
The analyst highlights Disney’s strong balance sheet, cash flow generating capabilities and practical capital allocation strategies. These help the company invest in content development, new theme park attractions, and other growth-enhancing activities.