Top Wall Street analysts see Alphabet as a buying opportunity


The Google Alphabet Inc logo outside the company’s office in Beijing, China, August 8, 2018.

Thomas Peter | Reuters

With the ugly month of September in the rearview mirror, it’s tempting for investors to make impulsive decisions.

The three major indices ended the month with big losses, weighed down by rising bond yields and the Federal Reserve that will do whatever it takes to bring down inflation.

As frightening as these times can be, it is essential that investors take a long-term perspective and look closely for stocks that have potential beyond these turbulent times.

Here are five stocks picked by top Wall Street professionals, according to TipRanks, a platform that ranks analysts based on their track record.

GXO Logistics

Pure-play Contract Logistics Provider GXO Logistics (GXO) to take advantage of technology to manage supply chains and warehousing. This company tackles a very disadvantaged corner of e-commerce: reverse logistics, or the movement of goods from customers to sellers. In the second quarter, 40% of the new company’s profits came from reverse logistics.

Since it first appeared on the public markets in 2021 – A cross from XPO LogisticsGXO I managed to close a deal worth a billion dollars to acquire it Reverse Logistics Leader Clipper Logistics. This acquisition also solidified GXO’s stronghold in the reverse logistics market. (We see GXO Logistics Risk Factors on TipRanks)

However, macroeconomic headwinds from Europe and the UK are weighing on the company’s financials. After pricing in headwinds that are expected to keep accumulating for some time, Cowen analyst Jason Seidel He recently lowered his near-term price target on GXO to $62 from $67.

Seidl pointed out that about 70% of GXO’Sales are in foreign currencies, mainly in pounds sterling and euros. Ongoing currency headwinds from Europe due to the Russo-Ukrainian War have resulted in GXO driving a $30 million impact on revenue in 2023. However, the pound’s depreciation has led the analyst to expect a further impact.

However, the analyst remains firm on its buy rating, saying that GXO’s The variable cost structure is able to mitigate negative margin effects. For those who can tolerate the near-term concerns, Seidl recommends buying the stock. The analyst, who ranked eighth among nearly 8,000 analysts were tracked on the platform.

Most importantly, 67% of Seidl’s ratings were profitable, with each rating generating 23.9% returns on average.

Nova

Nova (NVMI) offers some heavy gauge solutions to the semiconductor manufacturing market. The company’s balanced revenue mix of foundry and memory helped hedge its business against exposure to a single end market.

Recently, Needham analyst Queen Bolton weighing on Nova Buy reclassification and $120 target price for the company. “We love Nova for its strong foothold in the foundry and memory markets and its continued focus on developing new technologies to meet the need for scaling in semiconductor manufacturing,” the analyst said. (We see Nova stock chart on TipRanks)

Unlike many other types of process control equipment, optical critical dimensional solutions do not face the risk of diminishing demand as chip capacity increases. In fact, they are expanding linearly with it. Now, Nova has about 70% of the OCD market, giving it a strong amphitheater for growth as chip capabilities expand as advanced technologies proliferate.

Bolton is optimistic about it Nova Prospects in the X-ray technology market. The analyst expects the X-ray technology market to grow “in both front-end metrics and advanced packaging applications.”

“We believe that Nova will be a preferred resource for measurement for the foreseeable future, and we believe that Nova will easily reach the billion-dollar goal even with very conservative assumptions,” Bolton said.

Bolton is ranked third out of nearly 8,000 analysts in the TipRanks database. Notably, 62% of its ratings return successfully with an average of 38% per rating.

TD SYNNEX

IT business process service provider TD SYNNEX (SNX) takes advantage of the high demand for work software and distance learning, as well as hardware solutions. Moreover, rapid digital transformation has kept the IT spending environment favorable for business.

The company recently released its quarterly results, outperforming net income. However, like its other technical counterparts, economic headwinds spare no TD SYNNEX. Barrington Research Analyst Vincent Colicchio Target price cut to $98 from $106 to reflect headwinds that will affect business in the next few months.

However, Colicchio believes that the combined strengths of SYNNEX and Tech Data (in which it operates merged last year) will help the company achieve strong revenue and cost synergies. This will help in the growth of profits over the next few years. (We see TD Synexx Corporation Blogger Opinions & Sentiments on TipRanks)

“The company’s revenue should grow faster than public IT spending as it increases its investment in fast-growing technologies. We are confident in management’s ability to achieve or exceed our $200 million target cost synergies given its track record of execution in acquisitions,” Weighing in Colicchio.

The analyst reiterated his buying assessment of the stock, saying the shares are trading at an attractive discount.

Colicchio was ranked 581st out of nearly 8,000 analysts followed by TipRanks. The analyst has a 52% success rate, and each of his reviews has average returns of 8.5%.

the alphabet

As the tech sector grapples with multiple economic hits, the alphabet (The Google) is working on new devices to launch at the upcoming “Made by Google” event. (We see Investors in stocks first-class alphabet Emoticons on TipRanks)

Prior to releases, Monis Crispy Hardt analyst Brian White, considered a bull at Google, maintained a buy valuation for the stock. White said, justifying his long-term optimistic view on the alphabet.

in addition to, alphabet Strong capabilities in artificial intelligence give the company the upper hand to enhance consumer experiences. Also, White is encouraged by the fact that in the second quarter of the year, Apple held only 15.6% of global smartphone shipments. This means that Android has the highest share in the operating system market.

White, who holds 470The tenth Among the nearly 8,000 analysts rated on TipRanks, it held its $145 price target on GOOGL stock. The analyst has a 56% success rate and an average return of 9.6% on each of his ratings.

Edison International

energy company Edison International (ninth) is winning its own battles amid the growing macroeconomic headwinds roiling every sector. The company has been skilfully dealing with recent heat waves across the United States.

Also, RBC Capital Analyst Shelby Tucker He is confident that the burden of electricity consumption, which is likely to remain constant until 2030, is expected to grow thereafter. Management anticipates a 60% increase in load between 2030 and 2045, as electricity demand grows. (We see History and history of international dividends on TipRanks)

“The higher consumption of electricity is likely to be offset by distributed generation, batteries and energy efficiency measures,” Tucker said, before adding Edison It has more opportunities on the storage side than on the generation side.

Furthermore, Southern California Edison’s wildfire reduction plan reduced the parent company’s wildfire risk by 65% ​​to 70%, which is a boon for Edison. “We still think so ninth Undervalued for the sector despite a number of steps taken by utilities, and California, to address the wildfire challenges facing the system,” Tucker said, stressing the attractive opportunity for investors to acquire EIX shares.

More important , Edison The solutions profile is all-electric, making it an “attractive pure gaming option for investing in community electrification.”

Tucker reiterated the stock’s buy rating with a target price of $82.

The analyst, which ranks 140th out of nearly 8,000 analysts tracked by TipRanks, has been successful in its ratings 67% of the time. Furthermore, each of their ratings generated an average return of 9.8%.


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