Earnings season is upon us again, with prominent names reporting this week. Volatility remains a focus for investors, and inflation has continued to put pressure across all industries. The short-term uncertainty remains blurred, although long-term investments can often cut through the daily noise.
Let’s take a look at five stocks that analysts see doing well in the future.
Rising inflation does not hurt everyone equally, with those in lower socioeconomic strata and younger people feeling the full force of influence. When a business is involved in e-commerce, it helps to have lower costs in its offering. To eBay (EBAY), this comes in the form of refurbished and used product categories, an area that the company is expected to expand.
Colin Sebastian of Robert W. Baird recently reported on the online marketplace and auction site, noting that in terms of inflation, “eBay’s unique range of used and valuable items should mitigate this headwind or even benefit the platform.” He went on to explain that Gen Z consumers are very interested in this segment, where 80% of them buy the goods, according to a company survey.
Sebastian rated the stock as a buyout, adding a price target of $ 80 per share.
The top-ranked analyst went on to elaborate that “the platform’s value-price orientation could help offset soft consumer spending among low- and middle-income consumers.”
In the short term, the analyst expects EBAY to come up with more announcements, such as a digital wallet and an increased focus on auto parts sales. (See Ebay site visits at TipRanks.)
When reporting quarterly earnings, e-commerce companies have had a hard time beating comparisons from the pandemic era, as slow consumer trends worsen with supply-side constraints and an inflationary environment. Ebay is expected by Sebastian to meet its guidelines on May 4, although a beat and raise would be highly bullish given these challenges.
Out of nearly 8,000 analysts at TipRanks, Sebastian ranks # 158. His success rate is 52% and he maintains an average return of 37.1% per. rating.
Technology has been one of the hardest hit sectors lately, as many of its large corporations were still considered risk-averse and overvalued as the economy took a turn. Google’s parent company Alphabet (GOOGL) was largely isolated from the damage, in part because its advertising segment was largely protected from Apple (AAPL) iOS 14.5 privacy update last summer.
Now, after weathering the storm, Brian White of Monness said he expects the stock to be stable and healthy, heading into the earnings call on Tuesday. In his latest report, he noted that GOOGL outperformed the average stock in its coverage, elaborating that “we believe the Alphabet will continue to benefit from the secular digital advertising trend and strength of experience in the cloud.”
White rated the stock as a buyout and added a price target of $ 3,850 per share. shares.
He is also excited about Alphabet’s investor conference in mid-May, which could spark an encouraging investor sentiment for the technology conglomerate.
So far, White has stated that platforms like Google Search and Youtube Ads have driven growth, largely uninterrupted by Apple’s software changes. Companies like Meta Platforms (FB) and Snap (SNAP), however, has much to worry about. (See Alphabet Stock Charts on TipRanks)
On the regulatory front, the highly accurate analyst admitted that Alphabet is most likely to see continued antitrust cases in the United States and that he is currently dealing with some disruption from the recently adopted European Digital Markets Act (DMA).
At TipRanks, White is ranked # 171 out of nearly 8,000 analysts. He has been entitled to 65% of his stock choices and has given an average return of 29.7% on each of them.
Just by going into any travel search engine one can see that the global recovery in demand is back in full swing. Prices have skyrocketed across the board as trapped consumers are finally looking to take a summer break, see the family or just experience something new for a change. After last summer was derailed by the delta variant, it appears that this is carved in stone. Composed of mask mandates departing domestically, Booking Holdings (BKNG) expects a strong 2nd quarter.
Tigress Financials Ivan Feinseth identified these benefits in its latest publication and noted that the travel search engine conglomerate is ready to benefit as it is already experiencing high growth from its hotels, aircraft and rental car segments.
Feinseth rated the stock as a buy, raising the bullish target to $ 3,210 from $ 3,150.
In addition to the apparent resurgence in both business and leisure travel and excursions, the five-star analyst mentioned that “BKNG continues to benefit from advertising, grocery and other business areas that are also experiencing strong growth.”
Booking is expected to report its first quarter earnings on May 4th.
The company has also made several encouraging acquisitions that have strengthened its vertically integrated ecosystem. Companies like Getaroom, FareHarbor and Etraveli are all expected to provide a robust consumer experience.
Feinseth wrote that “BKNG’s market-leading position, strengthened by its strong brand equity and diversified global footprint, along with its solid execution capability, technologically advanced platform and realization of value from its complementary acquisition strategy” are all expected to continue to yield gains.
Out of TipRanks’ nearly 8,000 analysts, Feinseth ranks # 65. He has been successful in valuing stocks 68% of the time and has an average return of 30.1%.
Over the last few years, the world of fast fashion has experienced massive growth, yet the industry’s manufacturing methods remain in the past. Environmental considerations remain prominent for large industrial players, and smaller ones would not mind reducing costs either. In comes Kornit Digital (KRNT), an Israeli company in the field of digital printing systems that is currently disrupting supply chains.
While stocks at last glance fell significantly from year to date, some analysts see a recently discounted growth opportunity.
One of those bullish voices in the crowd is James Ricchiuti of Needham & Co., who wrote that Kornit’s “business stays healthy” and he predicts “strong tailwinds” for the next year and a half. KRNT’s business model is supported by its direct-to-clothing and direct-to-fabric waterless printing systems and is positioned to continue to gain market share in its industry.
Ricchiuti repeated a buy rating on the stock, lowering its price target to $ 155 from $ 202. The downward adjustment of the price target comes on the basis of a general decline for growth and technology names across the stock market. (See Kornit Digital Risk Factors on TipRanks)
Kornit has acquired both large and small customers and is experiencing strong momentum from customers who want to emphasize sustainability. The five-star analyst wrote: “Leading clothing retailers have in recent weeks highlighted the need to eliminate the risk of supply chains through near-shoring and on-shoring strategies, while major e-commerce clothing companies have at the same time stressed the importance of introducing advanced digital production procedures to deliver short-term and custom orders faster. ”
Out of nearly 8,000 expert analysts, Ricchiuti maintains position # 144. He has been right in his stock choices 62% of the time and has an average return of 27.8% on each of them.
Along with the rest of technology, e-commerce and pandemic-driven stocks, Carvana (CVNA) has fallen sharply over the last few quarters. The stock is above 77% from its highs in August 2021, and now macroeconomic headwinds have held back its business model. The major retailer of used e-commerce cars has seen impacts on its volumes and thus its margins, although its management has said the road to recovery is clear.
Agreeing with this sentiment is Scott Devitt of Stifel Nicolaus, who noted that Carvana has taken steps to “normalize service levels, shorten delivery times and improve inventory levels.” If the right steps are to be taken, the current challenges facing the company may be short-lived.
Devitt rated the stock as a buy and modestly lowered its price target to $ 140 from $ 170.
The high-ranking analyst claimed that the current narrative around the company and its simultaneous downward trend in the share price is exaggerated and that its shares now represent a significant discount. (See visit the Carvana website at TipRanks)
In his report, he wrote that “operational improvements should result in sequential growth in unit volumes, revenue and GPU [gross profit per unit]”although the slowdown in the overall market obscures visibility in the short term.
By cementing its hypothesis about the stock, Devitt mentioned that Carvana is the “leading e-commerce platform and is well positioned with the infrastructure, technology and expertise required to operate a nationwide network.”
Out of nearly 8,000 professional analysts, Devitt ranks as # 538. He maintains a success rate of 49%, and has an average return of 19.7%.