It seems that every passing trading session brings a flurry of quarterly earnings and volatility to the stocks of the companies reporting results.
Positive footprints can cause stocks to skyrocket after close of trading with low volume trading or to sell ahead of the market when profit takers move in. In general, short-term trading is dramatically more unpredictable, while the long-term outlook can offer more stable price movements for stocks.
Top analysts have highlighted these five companies, most of which have reported their most recent quarterly earnings, according to TipRanks, which tracks the top performing stock picks.
Being a major automaker amid months of global semiconductor shortages is not an enviable position. Ford Motor (F.) managed to weather the storm throughout the third quarter and print impressive earnings results. The company has moved ambitiously towards a full electric vehicle (EV) pipeline and has several other promising opportunities up its sleeve. (See Ford stock analysis on TipRanks)
Jefferies’ Philippe Houchois wrote that Ford’s upcoming product mix will help drive valuation gains further. He added that “industry-leading product activity, structural cost reductions and a lower margin base (to date) should, in our view, enable Ford to better offset the normalization.”
Houchois listed the stock as a Buy and raised his price target from $ 17 to $ 20.
The tone of management during the company’s conference call encouraged the analyst. He believes Ford’s leadership is tactically maneuvering into uncertain industries and managing inventories well with their order-driven strategy.
There’s a gap between Ford’s current valuation and its gross margins, and Houchois believes the old automaker has an uptrend in its stock price. He mentioned that “many strategic levers will remain available to improve market and product exposure” and that the company’s healthy balance sheet will provide sufficient leverage to implement its EV aspirations.
TipRanks ranked Houchois # 304 out of more than 7,000 analysts. Its stock selection was successful 64% of the time and its average return per rating is 31.6%.
As the Covid-19 pandemic spread around the world, people stuck at home searched the internet for time-consuming activity. It seems that almost every cloud or internet-based company has seen a boom in the past year and a half. This also applies to the online learning platform Coursera (COURT), which recently released impressive third quarter results. (See Coursera News Sentiment on TipRanks)
Needham & Co.’s Ryan MacDonald reported that Coursera had a strong quarter of increased business performance, helped by a record number of students enrolled. He added that the company’s results and outlook “highlight the company’s strong and improving fundamental profile and exposure to attractive end market trends.”
MacDonald listed the stock as a Buy with a target price of $ 45.
The analyst was confident about the company given the tough quarter-on-quarter comparisons. He said Coursera’s success shows “the strength of the B2B end market”.
The growing number of users in the third quarter was particularly significant as the pandemic restrictions eased. MacDonald expects Coursera’s pipeline to further increase valuation gains.
MacDonald is ranked # 169 by TipRanks out of over 7,000 financial analysts. It has a 66% success rate and its reviews have returned an average of 48.8% per review.
Caesar’s conversation (CZR) had a productive third quarter as mentioned in its latest earnings release. The properties in Las Vegas carried the analysts’ trust in their brick-and-mortar business.
Carlo Santarelli of Deutsche Bank reported that the company had “got off to a strong start in Las Vegas” in the fourth quarter and expected a favorable season. He mentioned that Caesars’ marketing campaigns were successful in attracting new bookings and increasing sales. (See Caesars Entertainment website traffic on TipRanks)
The bullish analyst rated the stock as a buy and set a price target of $ 132 per share.
In addition to its traditional hotel and casino streams, Caesars is experiencing bullish trends in its sports and gaming services. Additionally, the company’s online sports betting license in New York state could gain government approval that would act as a catalyst for uptrends.
Additionally, Santarelli noted a possible asset sale in the first half of fiscal 2022. This could include a property in Las Vegas and would help ease the burden on the company’s bottom line.
Out of more than 7,000 analysts, Santarelli is ranked 102nd. He has a 71% success rate and his stock pick has achieved an average return of 42.8%.
Batteries are a key piece of the puzzle as the adoption of electric vehicles grows. The cost of producing batteries has contributed to the high prices of most electric vehicles, and it is vital for electric vehicle manufacturers to maintain a steady supply of lithium carbonate to keep up with strong demand. A significant part of the light metal is mined in Argentina, where Lithium Americas (LAC) has offered to take over another lithium manufacturer. (See Lithium Americas stock charts on TipRanks)
The situation of the great lithium miner was detailed in a report by Laurence Alexander of Jefferies, who wrote that the offer to ingest Millennial Lithium (MLNLF) would significantly expand LAC’s activities in the element-rich province of Salta in northern Argentina. He added that Millennial’s properties are on “battery grade lithium carbonate” deposits worth approximately 40 years.
Alexander named the stock a buy and calculated a price target of $ 34. That goal was a significant increase over its previous $ 22 per share.
The proposed acquisition would provide Lithium Americas with sufficient leverage to adequately meet the exponentially growing demand for the mined resource. If the miners are to capitalize on the huge supply and demand gap, Alexander expects them to “recover 6-12 months” before the “balance becomes tighter”.
However, it is important to note that the uptrend in LAC is dependent on several macroeconomic factors that are beyond its control. The regulatory sentiment towards electric vehicles, South American tax policies and severe weather events can all affect production costs and output.
Alexander has worked his way up to 447th place out of over 7,000 other analysts. It was successful 64% of the time and has an average return of 17.1%.
Shoe and fashion retailer Steve Madden (SHOO) beat Wall Street’s consensus estimates for both earnings per share and sales. The company has high sales aided by its e-commerce streams. According to Sam Poser of Williams Trading, the retailer and its brands are on the rise. (See Steve Madden Risk Factors on TipRanks)
Poser expressed optimism about the stock by rating it “Buy” with a target price of $ 59.
The analyst believes the indicators are signaling high demand for Steve Madden’s offerings, and he believes his brands have bright futures in both the short and long term. The company has mitigated the effects of supply-side restrictions and managed its inventory levels efficiently. Poser said that “in the face of supply chain disruptions, SHOO is maintaining its relative speed to market advantage and gaining market share.”
In addition to the company’s loyal base, the marketing department has successfully promoted engagement with new customers. The new “Maddenverse” campaign aroused nostalgia for the previous generation of buyers with a page from its own advertising book and aroused the interest of younger groups. More generally, Poser praised the company for its “chameleon-like ability to deliver on-trend products.”
Aside from these positive attributes, Poser expects the current weight of increased shipping and logistics costs to give way to better margins and higher profits.
TipRanks ranked Poser # 112 out of more than 7,000 professional analysts. He succeeded on his ratings 61% of the time, and together they have an average return of 55.3% per rating.