Get defensive with these three upgrades

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Not all stocks are downgraded in the third quarter

Oh, times are changing. Not only is the S&P 500 earnings growth outlook diminishing, but the analyst is becoming more defensive every day. The latest set of comments contains many downward revisions and price target cuts, but there are some rays of light for investors. Among the latest updates are three stocks that we consider well positioned for the time being, including Dollar General, Crox and Antero Resources.


MarketBeat.com – MarketBeat

Dollar General orders another upgrade

General dollar (NYSE: CEO) has risen under the influence of earnings and analyst sentiment and this trend is not ending. The company just received the 2nd of two upgrades within two weeks that have Marketbeat.com consensus sentiment and bullish price target. The latest comes from Cleveland Research switching to Buy from Neutral without setting a price target. In the eyes of the firm, market share gains are accelerating and should be compounded by resilient margins in the coming quarters. The convenient location of stores and the alleviation of supply chain issues are also seen as strengths.
The new Buy rating compares favorably to the Marketbeat.com Moderate Buy consensus but did nothing to improve the price target. The consensus price target of $245 assumes the stock is already fairly priced, but we believe it is lagging the market. The consensus price target is slightly higher in the 12, 3 and 1 month comparisons despite consistent growth and outperformance. Looking at the chart, the stock might struggle to break above the $250 resistance target, but we see it falling by the end of the quarter. Dollar General will release its next results on August 25.
Get defensive with these three upgrades

Crocs launches an upgrade

fangs (NASDAQ: CROX) just implemented the first analyst upgrade since the last earnings report was released in early May. This is surprising given that Q1 results beat the consensus on the top and bottom results and the guidance was raised, but who are we to criticize? The bottom line is that Loop Capital improved the action in Buy from Hold and assigned a price target of $75 against the Marketbeat.com consensus of $134. In the eyes of Loop Capital, the company’s valuation is attractive after a massive sell-off and channel checks are promising.

Marketbeat.com’s consensus price target is down about $20 from this year’s high, but it’s still up sharply from last year and the downtrend appears to be over. The takeaway here is that the new $75 target is about 50% higher than the current price action and even the low price target offers some upside for investors. The company will release its next report the first week of August and is expected to post a strong 46% sequential increase in revenue from acquisitions and organic sales gains.
Get defensive with these three upgrades

Antero Resources is pumping up an upgrade

Between the high price of oil and the recent pullback in energy stocks, it’s no surprise that energy operators, especially independent drillers like Anterior resources (NYSE: RA), are upgraded. The latest comes from Truist Financial who upgraded the stock to buy at Neutral. The Upgrade compares favorably to the Moderate Buy consensus and has a higher rating. The upgrade also comes with a price target of $50, which is $5 above the average analyst target and assumes around 60% of the upside is available. As for the chart, Antero Resources’ price action is down nearly 40% since hitting its peak earlier this year. Price action is now testing support along the 150-day EMA where we expect a rebound to begin.
Get defensive with these three upgrades

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